CD Calculator
Calculate the earnings on a Certificate of Deposit (CD). See your total return and APY based on the interest rate and compounding frequency.
How CDs Work
A Certificate of Deposit (CD) lets you earn a fixed interest rate by locking up your money for a set period. The longer the term, the higher the rate typically. CDs are ideal for money you won't need soon, offering guaranteed returns with FDIC insurance protection.
Frequently Asked Questions
What is a CD (Certificate of Deposit)?
A Certificate of Deposit (CD) is a savings product offered by banks and credit unions. You deposit a fixed amount for a set term (3 months to 5 years), and in return, you earn a fixed interest rate that is typically higher than a regular savings account.
What is APY and how is it different from interest rate?
APY (Annual Percentage Yield) includes the effect of compounding interest, while the stated interest rate does not. For example, a 5% rate compounded monthly gives an APY of 5.116%. APY gives you the true annual return on your investment.
What happens when my CD matures?
When your CD matures, you can withdraw your money (principal + interest), renew it for another term, or roll it into a different CD. Most banks have a grace period (7-10 days) after maturity before auto-renewal.
Are CDs FDIC insured?
Yes, CDs at FDIC-insured banks are protected up to $250,000 per depositor, per bank. This means your principal is safe even if the bank fails, up to the insurance limit.
Disclaimer
This calculator is for informational purposes only and should not be considered financial advice. Consult with a qualified financial professional before making any financial decisions.