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CD Calculator

Plan your savings growth effortlessly with our CD Calculator. Simply enter your initial deposit, term length, and annual interest rate to calculate the annual percentage yield (APY) and end balance of your Certificate of Deposit (CD). Start planning your future with precision

Frequently Asked Questions:

What is a Certificate of Deposit (CD)?

Think of a Certificate of Deposit, often called a CD, as a special savings piggy bank. When you open a CD, you agree to deposit a certain amount of money and not touch it for a certain period. This period could range from a few months to several years. The great part is that the bank promises to give you a fixed amount of interest on your deposit. The catch is that if you break your promise and take out your money early, you'll usually have to pay a penalty.

What is a CD Calculator?

Imagine you have a magical crystal ball that can predict how much money you'd have in your CD at the end of the term. That's pretty much what a CD Calculator does! You tell the CD Calculator how much you're planning to deposit, how long you're planning to leave the money in, and the interest rate, and it tells you how much money you'll have at the end. It's a great way to compare different CDs and decide which one is best for you.

How is interest calculated on a CD?

The interest on a CD works a little like a baking recipe. You start with your initial deposit (the main ingredient), then you add the interest rate (the yeast that makes your bread rise). This interest is calculated at regular intervals, often every day, month, or year. Each time it's calculated, the interest is added to your deposit, which means you'll earn interest on your interest – that's the magic of compounding! The CD Calculator does all this math for you, so you don't have to.

Can I add more money to a CD after the initial deposit?

Usually, the answer is no. When you open a CD, you agree to deposit a certain amount of money. After that, it's like sealing a time capsule: you can't add anything else until the time is up. This is why it's important to think carefully about how much money you want to deposit in the first place.

What happens when a CD reaches its maturity date?

When the term of your CD is up, it's like the alarm clock ringing. You have a few choices: you can take out all your money, including the interest you've earned, or you can agree to leave it in for another term (this is called "rolling over" the CD). If you don't make a choice, many banks will automatically roll over the CD for the same length of time. So if you don't want to do that, be sure to let your bank know!