CD Calculator
CD Calculator
A CD is a fixed-term deposit that pays a guaranteed interest rate in exchange for locking your money away for a set period, typically offering a higher rate than a standard savings account. Since the APY already reflects the effective annual yield, calculating the maturity value is straightforward.
Savers looking for a safe, predictable return use CDs for money they won't need during the term, since early withdrawal typically triggers a penalty that can eat into or even exceed the interest earned.
- Fixed Rate, Fixed Term: Unlike a savings account, the rate and term are locked in when you open the CD.
- Early Withdrawal Penalties: Taking money out before maturity typically costs several months of interest — CDs are best for money you're sure you won't need.
- APY Already Accounts for Compounding: Since APY is the effective annual rate, this calculator simply scales it to your actual term length.
What happens if I withdraw money early from a CD?
Most CDs charge an early withdrawal penalty, often equal to a few months of interest — check your specific CD's terms, since penalties vary by term length and institution.
Is a CD better than a regular savings account?
CDs often offer higher rates in exchange for locking up your money, making them a good fit for funds you won't need during the term — a savings account offers more flexibility but often a lower rate.
A CD is a fixed-term deposit that pays a guaranteed interest rate in exchange for locking your money away for a set period, typically offering a higher rate than a standard savings account. Since the APY already reflects the effective annual yield, calculating the maturity value is straightforward.
Savers looking for a safe, predictable return use CDs for money they won't need during the term, since early withdrawal typically triggers a penalty that can eat into or even exceed the interest earned.
- Fixed Rate, Fixed Term: Unlike a savings account, the rate and term are locked in when you open the CD.
- Early Withdrawal Penalties: Taking money out before maturity typically costs several months of interest — CDs are best for money you're sure you won't need.
- APY Already Accounts for Compounding: Since APY is the effective annual rate, this calculator simply scales it to your actual term length.
What happens if I withdraw money early from a CD?
Most CDs charge an early withdrawal penalty, often equal to a few months of interest — check your specific CD's terms, since penalties vary by term length and institution.
Is a CD better than a regular savings account?
CDs often offer higher rates in exchange for locking up your money, making them a good fit for funds you won't need during the term — a savings account offers more flexibility but often a lower rate.