CD Calculator

A certificate of deposit trades flexibility for a guaranteed, fixed rate — you lock your money away for a set term in exchange for a rate typically higher than a standard savings account. This shows exactly what your deposit grows to at maturity.

Why CDs pay more than savings accounts

Banks can offer a higher rate on a CD because they know exactly how long they'll have your money — unlike a savings account, which you could withdraw from at any time. That predictability lets them commit to a better rate in exchange for your commitment to the term.

The early withdrawal penalty

Pulling money out of a CD before its maturity date usually triggers a penalty — often a few months' worth of interest — which can eat into or even eliminate your gains if withdrawn early enough. Only put money into a CD that you're confident you won't need before the term ends.

Frequently asked questions

Is APY the same as the interest rate?

APY (Annual Percentage Yield) already factors in compounding, giving you the true annual growth rate, while a stated "interest rate" alone might not. Always compare APYs when shopping between CDs, not raw interest rates.

What happens when my CD matures?

Most banks either automatically renew it into a new CD at the current rate, or move the funds to a linked account — check your bank's specific policy, since automatic renewal terms and any grace period to withdraw penalty-free vary by institution.