CD Interest Calculator
Calculate your potential earnings from Certificate of Deposit investments. See how different interest rates, terms, and compounding frequencies affect your returns.
Certificate of Deposit Calculator
Enter your CD details below to calculate your potential earnings
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Understanding CDs
A Certificate of Deposit (CD) is a time deposit that offers a guaranteed return. Key features include:
- Fixed Terms: Typically ranging from 3 months to 5 years
- Guaranteed Returns: Fixed interest rate for the entire term
- FDIC Insurance: Up to $250,000 per depositor, per bank
- Early Withdrawal Penalties: Fees apply if you withdraw before maturity
Compound Interest
Your earnings grow faster with more frequent compounding:
- Daily compounding yields slightly higher returns than monthly
- The effect is more pronounced with longer terms and higher rates
- Most banks offer daily or monthly compounding
Choosing the Right Term
Consider these factors when selecting a CD term:
- Current interest rate environment
- Your financial goals and timeline
- Need for liquidity
- Interest rate predictions