What is a certificate of deposit (CD)?

A certificate of deposit is a time deposit that pays a fixed interest rate for a fixed period, in exchange for keeping the money locked until maturity. Early withdrawal usually costs a penalty.

APY (Annual Percentage Yield) is the effective yearly return including compounding. A CD with 6% interest compounded monthly has an APY of about 6.17%.

Certificate of Deposit Calculator

Plan a fixed-deposit style investment.

CD Details

Deposit Amount ($)

Interest Rate (% p.a.)

CD Term (years)

yrs

Compounding

CD Maturity Amount

—

Interest Earned

—

APY (Annual Percentage Yield)

—

Comparing CDs

Always compare the APY, not just the interest rate. APY includes the effect of compounding, so it is the honest number for comparing different CDs with different compounding frequencies.

CD Calculator FAQ

What happens if I withdraw my CD early?▶

Most banks charge a penalty, typically a few months of interest. In some cases the penalty can exceed the interest earned, so it is usually better to keep a CD until maturity.

Are CDs risky?▶

CDs are among the safest investments because the principal is protected (up to deposit insurance limits) and the rate is locked in. The trade-off is a lower return than stocks.

CD: Certificate of Deposit

Fixed term: 1 month – 5 years

APY: Annual percentage yield

FDIC: Insured in the US

CD Calculator — Certificate of Deposit maturity

A Certificate of Deposit (CD) is a fixed-term deposit that earns a guaranteed, typically higher rate than a savings account. This calculator shows your maturity amount, interest earned and the true annual percentage yield (APY) for any compounding frequency.

How CDs work

You lock money for a term — 1 month to 5 years (or longer) — at a fixed rate. Withdrawing early triggers penalties (often several months of interest).

Longer terms generally pay higher rates, but rates can also be higher for shorter terms during unusual yield curves.

In the US, CDs are FDIC-insured up to 250,000 USD per depositor, per bank — making them one of the safest investments available.

CD laddering

Split your money into 4 CDs maturing at 3, 6, 9 and 12 months, rolling each into a new 1-year CD on maturity.

This gives a maturing CD every quarter — income and access — while capturing long-term rates.

When rates rise, ladders let you capture higher rates each rollover without locking everything at today's low rate.

How to use this calculator

Enter your deposit amount.
Input the CD's annual interest rate.
Set the term in years.
Choose the compounding frequency (daily, monthly, quarterly, yearly).
Read the maturity amount, interest and APY.

Pro tips

Compare APY, not the nominal rate — APY includes compounding effects.
Watch early-withdrawal penalties; CD rates are higher precisely because the money is locked.
Consider a brokered CD or CD ladder for flexibility.

Frequently asked questions

What is the difference between an FD and a CD?▶

They're the same concept (fixed-term deposit). 'CD' is the US term; 'FD' is used in India, Bangladesh and the UK. Rules and insurance vary by country.

What happens if I withdraw a CD early?▶

You'll pay a penalty — typically 3–6 months of interest (or more for long terms). In some cases, the penalty can exceed the interest earned.

CD Calculator