CD Calculator
Calculate returns on Certificates of Deposit with different compounding frequencies
CD Details
CD Summary
Final Balance$12,523.05
Total value at maturity
Total Interest$2,523.05
Total interest earned
Annual Percentage Yield (APY)4.60%
Effective annual rate with compounding
Yearly Breakdown:
Year 1:
$459.40 interest
Balance: $10,459.40
Year 2:
$480.50 interest
Balance: $10,939.90
Year 3:
$502.58 interest
Balance: $11,442.48
Year 4:
$525.67 interest
Balance: $11,968.14
Year 5:
$549.81 interest
Balance: $12,517.96
Understanding CDs
A Certificate of Deposit (CD) is a time deposit that offers a guaranteed return over a fixed term. CDs typically offer higher interest rates than regular savings accounts in exchange for keeping your money deposited for a set period.
Key Features
- • Fixed interest rate
- • Guaranteed returns
- • FDIC insurance up to $250,000
- • Various term lengths
- • Different compounding options
Common Terms
- • Principal: Initial deposit amount
- • APY: Annual Percentage Yield
- • Term: Length of deposit
- • Maturity date: When CD term ends
- • Early withdrawal penalty
CD Investment Strategies
CD Ladder
- • Spread investments across terms
- • Regular maturity intervals
- • Flexibility to reinvest
- • Average higher rates
- • Maintain liquidity
Term Selection
- • Consider interest rate trends
- • Match financial goals
- • Balance risk and return
- • Review early withdrawal terms
- • Compare different banks
Rate Shopping
- • Compare multiple banks
- • Check online banks
- • Look for promotions
- • Verify FDIC insurance
- • Read all terms carefully