CD Calculator

Calculate accumulated interest earnings on Certificates of Deposit

CD Calculator

Calculate the accumulated interest earnings on Certificates of Deposit over time.

CD Parameters

Initial deposit:

Interest rate:

Compound:

Deposit length:

yrs

mos

Marginal tax rate:

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.