CD Calculator
What a certificate of deposit actually pays: maturity value, interest earned, and the effective APY from your rate, term, and compounding frequency.
CD maturity value
Example: $10,000 at 4.5% for 3 years, monthly compounding → $11,442.48.
The worked deposit
$10,000 in a 3-year CD at a 4.5% rate, compounded monthly, matures at $11,442.48 — $1,442 of interest, an effective APY of 4.594%. Compounding frequency nudges rather than transforms: daily instead of monthly adds only a few dollars here, which is why comparing offers by APY (which already folds frequency in) beats comparing nominal rates. Every figure is computed by the same tested engine as the calculator above.
Where CDs fit a retirement plan
CDs shine for money with a date on it — next year's tuition, a planned roof, the first years of retirement spending — where a guaranteed nominal return beats market risk. Their weakness is the other calculator on this site: at 3% inflation, a 4.5% CD earns roughly 1.5% in real terms — run your figures through the Inflation Calculator to see the purchasing-power view, and compare longer horizons against the Investment Calculator.
Frequently asked questions
What makes a CD different from a savings account?
A CD locks your deposit for a fixed term at a fixed rate; a savings account stays liquid at a rate the bank can change any time. The lock is the trade: CDs usually pay more than savings for the certainty, and charge an early-withdrawal penalty (often several months of interest) if you break it.
Rate vs. APY — which should I compare?
APY. The nominal rate ignores compounding frequency; APY folds it in, which is why a 4.5% rate compounded monthly yields about 4.59%. Banks must disclose APY precisely so offers are comparable — this calculator shows the APY your inputs imply.
What is a CD ladder?
Splitting a deposit across staggered terms — say, one-, two-, and three-year CDs — so a portion matures regularly. You capture longer-term rates on most of the money while never being more than a rung away from liquidity, and each maturing rung can roll into a new long CD.
Are CDs insured?
At FDIC-member banks (or NCUA credit unions), yes — up to $250,000 per depositor, per institution, per ownership category. Confirm membership before depositing; brokered CDs add wrinkles worth reading about first.
Not financial advice: a general educational estimate. It excludes early withdrawal penalties, taxes on interest, and callable/brokered CD features. Values are processed locally in your browser and never transmitted. See the methodology page.