Certificate of Deposit (CD) Calculator
Calculate CD Earnings
CD Ladder Strategy
Formula
Maturity Value = Deposit x (1 + APR/n)^(n x t)
where n = compounding frequency, t = years
Frequently Asked Questions
What is a Certificate of Deposit (CD)?
A CD is a savings product offered by banks where you deposit money for a fixed term (3 months to 5+ years) at a guaranteed interest rate. CDs typically offer higher rates than savings accounts in exchange for locking up your money for the term.
What is a CD ladder?
A CD ladder involves splitting your investment across multiple CDs with staggered maturity dates. For example, investing equal amounts in 1, 2, 3, 4, and 5-year CDs. This provides regular access to funds while earning higher long-term rates.
What happens if I withdraw a CD early?
Early withdrawal from a CD typically incurs a penalty of 3-12 months of interest, depending on the CD term and bank. Some banks offer no-penalty CDs with slightly lower rates. The penalty can eat into your principal if you withdraw very early.
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