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CD Calculator
Estimate how much your certificate of deposit will earn.
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How to Use This Calculator
- Deposit — the amount you put into the CD at the start.
- Rate — the annual nominal interest rate the bank quotes.
- Term — how long the money is locked in, in months.
- Compounding — how often interest is added to the balance. More frequent compounding means slightly more interest.
Frequently Asked Questions
What is a CD?
A certificate of deposit is a bank product where you lock in money for a set term in exchange for a fixed interest rate, typically higher than a savings account.
What is APY vs APR?
APR is the nominal annual rate. APY accounts for compounding, so it shows the real effective annual return.
What happens if I withdraw early?
Most CDs charge an early-withdrawal penalty, often a few months of interest. You may also earn a lower rate in some cases.
Is a CD FDIC insured?
Yes, CDs at FDIC-member banks are insured up to $250,000 per depositor, per bank, per ownership category.
Practical Example
A $10,000 CD at 5% APY compounded monthly for 12 months:
- Maturity: $10,000 × (1 + 0.05/12)^12 ≈ $10,511.62
- Interest earned: ≈ $511.62
- Effective APY: ≈ 5.12%
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