CD Calculator
Calculate your Certificate of Deposit earnings with interest and tax considerations
CD Details
Results
CD Growth Over Time
Initial Deposit
$10,000
Interest Earned
$537
APY
5.38%
Term
12 months
Compare CD Terms
See how different CD terms would affect your earnings
6-Month CD
Maturity Value: $10,250
Interest: $250
12-Month CD
Maturity Value: $10,537
Interest: $537
24-Month CD
Maturity Value: $11,068
Interest: $1,068
5-Year CD
Maturity Value: $12,618
Interest: $2,618
Understanding Certificates of Deposit
A Certificate of Deposit (CD) is a type of savings account offered by banks and credit unions that typically offers higher interest rates than regular savings accounts in exchange for keeping your money deposited for a fixed term.
Key Features of CDs:
- Fixed Term: CDs have specific maturity dates ranging from a few months to several years
- Fixed Interest Rate: The interest rate is locked in for the entire term
- Safety: CDs are FDIC-insured up to $250,000 per depositor, per institution
- Early Withdrawal Penalties: Withdrawing funds before maturity usually incurs a penalty
Benefits of CDs:
- Higher interest rates than regular savings accounts
- Predictable returns with no market risk
- Helps with disciplined saving
- FDIC insurance provides security
How Interest is Calculated:
CD interest is typically compounded, meaning you earn interest on both your initial deposit and any accumulated interest. The frequency of compounding (daily, monthly, quarterly, etc.) affects your total return. The Annual Percentage Yield (APY) reflects the real rate of return, accounting for compounding.
“CDs offer a safe way to grow your savings with predictable returns.”
This calculator provides estimates only. Actual CD terms and rates may vary by financial institution. Early withdrawal penalties may apply. Interest income is subject to taxation. Consider consulting a financial advisor before making investment decisions.