CD Calculator
A CD pays a fixed rate for a fixed term. Enter the APY the bank quotes and the term to see what it's worth at maturity.
$10,450.00 at maturity
- Interest earned
- $450.00
- Term
- 1 yr
How it works
The deposit grows at the APY for the term length. If you enter a nominal rate instead, it's converted to an effective annual yield first.
Explain it to a kid
A CD is like a piggy bank with a lock on it — you promise not to touch the money for a while, and in return the bank pays you extra for waiting. The longer you agree to leave it locked, the more bonus money you usually get when you finally open it.
Frequently asked questions
What's the difference between APY and a nominal rate?
APY already accounts for compounding and is what you'll actually earn in a year. A nominal rate needs a compounding frequency (monthly, quarterly, etc.) to convert into an APY — this calculator does that conversion for you if you enter compounds-per-year, or you can enter the bank's quoted APY directly.
What happens if I withdraw before the CD matures?
Most CDs charge an early-withdrawal penalty, often a number of months' interest, which can eat into or eliminate your earnings if withdrawn soon after opening. This calculator assumes you hold the CD to maturity.
Is a CD better than a high-yield savings account?
A CD typically locks in a fixed rate for the term, which is valuable if rates might fall, while a savings account's rate can change anytime but keeps your money liquid. Compare the CD's rate against current savings rates for the same term before locking funds away.
Do CDs compound, or just pay simple interest?
Bank CDs almost always compound — that's what the quoted APY reflects. This calculator compounds the deposit over the full term at the effective annual yield to project the maturity value.