CD Calculator

A Certificate of Deposit (CD) is a time deposit account that typically offers:

• Higher interest rates than regular savings accounts
• Fixed terms ranging from months to years
• Guaranteed returns if held to maturity
• FDIC insurance up to $250,000

Compound interest is interest earned on both:

• Your initial principal investment
• Previously accumulated interest
• More frequent compounding periods mean higher returns
• The effect increases significantly over longer terms

The Effective Annual Rate (EAR) shows:

• The actual annual return including compound interest
• True rate of return for comparison between different CDs
• Impact of different compounding frequencies
• Real earning potential of your investment

CD interest rates are influenced by several factors:

• Federal Reserve monetary policy
• Term length (longer terms typically offer higher rates)
• Deposit amount (larger deposits may earn higher rates)
• Individual bank policies and competition