Standard CD Calculator

Understanding Certificate of Deposit Calculations

A Certificate of Deposit (CD) is a time deposit account that typically offers a higher interest rate than regular savings accounts in exchange for leaving your money untouched for a specific term. Our standard CD calculator helps you determine exactly how much your investment will grow over time.

How CD Interest Is Calculated

CD interest is typically calculated using compound interest, which means you earn interest not only on your initial deposit but also on the interest accumulated over time. The frequency of compounding (daily, monthly, quarterly, etc.) affects your total returns. More frequent compounding generally results in higher returns.

Factors That Affect Your CD Returns

Several factors influence your CD earnings:

• Principal amount (your initial deposit)
• Interest rate (APY)
• Term length (how long you keep your money in the CD)
• Compounding frequency (how often interest is calculated)

Comparing CD Options

When evaluating CD options, consider comparing:

• Different term lengths using our standard calculator
• CD rates versus high-yield savings with our comparison tool
• Building a CD ladder for liquidity and higher returns using our CD ladder calculator
• Current rates from various financial institutions with our rate finder

Making Informed CD Investment Decisions

Before investing in a CD, it's important to consider your financial goals, liquidity needs, and the current interest rate environment. Use our suite of calculators to help make informed decisions about your CD investments and maximize your returns.