CD Calculator: Maximize Your Savings with Our Certificate of Deposit Tool
Use the CD Calculator to see how compound interest grows your deposit, adjust term or rate, and compare options quickly. Average U.S. 1-year CDs yield 1.72 % APY (Federal Reserve, 2024).
CD Calculator
Results
Based on your inputs, here are the calculated results:
Future Value:
Total Interest Earned:
★ Add to Home Screen
×
Follow these steps:
Tap the Share button at the bottom of the browser
Scroll down and tap “Add to Home Screen”
Tap “Add” to confirm
Follow these steps:
Tap the menu icon (⋮) in the top right
Tap “Add to Home screen”
Tap “Add” to confirm
Follow these steps:
Click the menu icon (⋮) in the top right
Click “Bookmarks”
Click “Bookmark this tab” or press Ctrl+D (Cmd+D on Mac)
Is this tool helpful?
Thanks for your feedback!
How to use the tool
Initial Deposit ($) – Type the cash you will lock in, e.g. 5 500 or 22 000.
Annual Interest Rate (%) – Enter the bank’s APY such as 4.1 or 1.75.
Term Length – Add the duration and pick Months or Years; try 9 months or 4 years.
Compounding Frequency – Choose Monthly, Quarterly, etc. More periods mean faster growth.
Calculate – Hit the button; see the future value and total interest instantly.
FDIC insures CDs up to $250 000 per depositor (FDIC, 2023).
Common terms range 3 mo – 5 yrs (Consumer Finance Protection Bureau, 2023).
Average early-withdrawal penalty equals 3–6 months of interest (Bankrate, 2024).
National average 1-yr CD APY sits at 1.72 % (Federal Reserve, 2024).
Daily compounding delivers ~0.17 % more over 5 yrs than annual compounding on a 3 % rate (NerdWallet, 2024).
FAQ
What is a certificate of deposit?
A CD is a time-bound deposit that pays a fixed rate and is federally insured up to $250 000 (FDIC, 2023).
How does compounding frequency affect earnings?
More compounding periods add interest to interest sooner, raising returns by a few tenths of a percent over multi-year terms (NerdWallet, 2024).
Can I withdraw before maturity?
Yes, but banks subtract an early-withdrawal penalty, usually three months’ interest on terms under a year (Bankrate, 2024).
What happens at maturity?
You may withdraw funds or let them roll into a new CD; federal rules require a ten-day grace window (Regulation DD, §230.5).
Why use laddering?
Laddering splits funds across staggered terms, giving annual liquidity while securing higher long-term yields (Investopedia, 2024).
Are CD earnings taxable?
Interest is taxed as ordinary income in the year it accrues, even if you don’t withdraw it (IRS Pub. 550, 2023).
Is a CD safer than a high-yield savings account?
Both carry FDIC insurance; CDs trade liquidity for typically higher fixed rates (CFPB, 2023).
Expert view on insurance limits
“FDIC insurance covers deposits ‘up to at least $250 000 per insured bank, per depositor’” (FDIC Deposit Insurance Brochure, 2023).
Important Disclaimer
The calculations, results, and content provided by our tools are not guaranteed to be accurate, complete, or reliable. Users are responsible for verifying and interpreting the results. Our content and tools may contain errors, biases, or inconsistencies. We reserve the right to save inputs and outputs from our tools for the purposes of error debugging, bias identification, and performance improvement. External companies providing AI models used in our tools may also save and process data in accordance with their own policies. By using our tools, you consent to this data collection and processing. We reserve the right to limit the usage of our tools based on current usability factors. By using our tools, you acknowledge that you have read, understood, and agreed to this disclaimer. You accept the inherent risks and limitations associated with the use of our tools and services.
