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Calculator CD: Free Calculator for Certificates of Deposit

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NerdWallet CD Calculator Shows What You Can Earn With a Certificate of Deposit, a type of savings account that you leave untouched for months or years. Like regular savings accounts, CDs are safe because they are federally insured. Use the CD calculator below to see the total interest.

What should I know when choosing CDs?

  • Favor the search for a high interest rate. Not all banks have competitive rates on their CDs. Consult our list of best CD rates.

  • Avoid early withdrawal fees. While short term CDs mean less time waiting to access your money and fewer penalties for getting money sooner, long term certificates generally have higher rates.

Compare the best CD rates

Find out which banks and credit unions currently offer high yield CDs.

Compare the best CD rates

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APY

0.50%

Frequently Asked Questions

CDs are safe investments that can help meet some short-term savings goals, but keep in mind that high rates are hard to find these days. More details in our article on advantages and disadvantages of CDs.

It depends on the CD rate. A five-year CD at a competing online bank might have a rate of 0.80% APY, which would earn around $ 20 in five years. A five-year CD rate closer to the national average, such as 0.27%, would earn about $ 7. If your savings are closer to $ 500 than to $ 10,000, you might also consider rewards verification options Where neobanks with paid accounts, which may have competitive interest rates with maximum balance limits.

It depends on the CD rate. A one-year CD with a 0.50% APY rate earns $ 50, while a CD with a 0.10% APY rate earns $ 10. To compare current prices, see best one year CD rates this month.

Only if you withdraw before the CD term expires. The penalty tends to vary from a few months to a year of interest.

What happens if I remove a CD earlier?

Usually a CD has an early withdrawal penalty, which tends to range from a few months to a year of interest earned, depending on the bank and the duration of the CD. Longer durations usually result in higher penalties. These penalties only arise if you withdraw money before a CD expires. Try our calculator to see how much is an early withdrawal penalty. If you want the flexibility of early withdrawal without penalty, consider a CD without penalty.

How long should you get?

The longer the duration, the higher the rate tends to be. The terms generally vary from three months to five years. Most have early withdrawal penalties, so make sure you don’t need the money until the term expires.

How much interest will you earn on a CD?

It varies depending on your deposit, CD rate and term of office. For example, a $ 10,000 deposit in a five-year CD with 0.80% APY would earn around $ 408 in interest, while the same deposit in a five-year CD with 0.01% APY (all other factors being the same) would only earn $ 5 in interest.

How to calculate CD interest

If you’d rather try your hand at calculating interest without a calculator, use the compound interest formula:

  • A = final amount (this means the initial balance plus all interest earned after n years).

  • P = original balance (or your initial deposit, as there are usually no other contributions to CDs).

  • r = interest rate (in decimal form) *.

  • m = number of times interest is compounded per year (typically 365 for daily, 12 for month, 4 for quarter).

Once you get a result for A, subtract P from A (A – P) to get the interest amount.

* Note: The interest rate and APY are slightly different. To be more specific, use the interest rate in the formula.

How do CD prices work?

CD rates are usually shown as a percentage of annual return, or APY, that is, how much the account earns in a year, including compound interest. Banks and credit unions generally charge interest monthly or daily. An interest rate is similar to APY, but it does not take into account compound interest. For more details, see our explanatory note on APY.

When will CD prices increase?

Part of that depends on when the Federal Reserve hikes its benchmark rate again, which might not be for some time. The actions of the Federal Reserve are a factor in banks’ decisions to change rates. See historical CD rates.

See CD prices by term and by type

Check out the best CD interest rates on certificates of deposit:

See CD prices by bank

If you want to see what specific banks are offering, here’s a quick list of CDs from traditional and online banks (and a brokerage offer):

Are there other accounts I should consider?

An online brokerage account is an option if you have already built up a solid emergency fund and want to boost your savings over the long term. Although these financial products carry more risk than CDs, they could generate higher returns.

Choosing the right broker depends on your priorities. Some investors are willing to pay more for a top-notch platform; others count costs first. With brokerage accounts, you don’t have to worry about early withdrawal penalties, but your funds can be more difficult to access in the blink of an eye, since you will likely have to sell investment stocks before you sell. be able to spend that money on something else. .


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