Calculate your CD (Certificate of Deposit) maturity value, total interest earned, and APY based on principal, rate, and term.
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A Certificate of Deposit (CD) offers guaranteed returns at a fixed interest rate for a set term. Our CD calculator helps you determine your maturity value, total interest earned, and effective annual yield (APY) so you can compare CD options and maximize your savings.
A Certificate of Deposit (CD) is a savings product offered by banks and credit unions that pays a fixed interest rate for keeping your money deposited for a set period (the term). CDs typically offer higher interest rates than savings accounts because you agree not to withdraw funds until maturity.
CD Interest Formula
A = P(1 + r/n)^(nt)Evaluate different CD terms and rates to find the best return for your goals.
Know exactly how much you'll have at maturity for financial planning.
See how compounding frequency affects your actual annual yield.
Spread deposits across multiple CD terms for balance of rates and liquidity.
Online banks often offer higher rates than traditional banks.
Allow one rate increase if rates rise during your term.
Allow early withdrawal without penalty, but typically lower rates.
APR (Annual Percentage Rate) is the simple interest rate. APY (Annual Percentage Yield) includes compound interest, showing your actual annual return. APY is always equal to or higher than APR due to compounding.
More frequent compounding (daily vs. annually) results in slightly higher returns. For example, 5% compounded daily yields approximately 5.127% APY, while annually it's exactly 5%. The difference is more noticeable with higher rates and longer terms.
Early withdrawal typically incurs a penalty, often 3-12 months of interest depending on the term. Some banks may also reduce your rate. Always check early withdrawal penalties before opening a CD.
Yes, CD interest is taxed as ordinary income in the year it's earned, even if you don't withdraw it until maturity. You'll receive a 1099-INT form if you earn more than $10 in interest.