CD (Certificate of Deposits) Calculator
Estimate maturity value on a single deposit with no withdrawals—similar to many bank CD quotes (nominal rate and compounding).
CD terms
Value at maturity:
Interest earned:
Effective annual yield over full term:
How CD interest compounds
A CD locks in a fixed rate for a set term, with interest compounding at the frequency the bank specifies (daily, monthly, quarterly, or annually). More frequent compounding produces a slightly higher effective yield for the same nominal rate, because each compounding period's interest starts earning its own interest sooner.
Frequently asked questions
What's the difference between the interest rate and APY? The interest rate (nominal rate) is the stated annual rate before compounding; APY (annual percentage yield) reflects the actual return after compounding is applied — APY is always equal to or slightly higher than the nominal rate.
What happens if I withdraw before the CD matures? Most CDs charge an early withdrawal penalty, often equal to a number of months' interest, which can reduce or even eliminate the interest earned if withdrawn very early in the term.
Is a longer CD term always better? Not necessarily — longer terms often (but not always) offer higher rates, but they also lock up your money longer, and if rates rise after you open the CD, you may miss out on better rates elsewhere.