CD Calculator
Calculate accumulated interest earnings on Certificates of Deposit
The Certificate of Deposit (CD) Calculator can help determine the accumulated interest earnings on CDs over time. It also takes into consideration taxes to provide more accurate results.
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Understanding Certificates of Deposit (CDs)
A Certificate of Deposit (CD) is a time deposit that offers a guaranteed return over a fixed period. CDs typically offer higher interest rates than regular savings accounts in exchange for keeping your money locked up for a specified term.
Key Features of CDs:
- • Fixed Interest Rate: The rate is locked in for the entire term
- • Term Length: Ranges from a few months to several years
- • Early Withdrawal Penalties: Fees apply if you withdraw before maturity
- • FDIC Insurance: Up to $250,000 per depositor, per bank
- • Compound Interest: Interest can compound at different frequencies
Tax Considerations: CD interest is taxable as ordinary income. Consider using the marginal tax rate to see after-tax returns.
Strategy Tips: Ladder CDs with different maturities to maintain liquidity while maximizing returns.