CD Calculator: How To Maximize Your Savings Accounts

Shawn Plummer

CEO, The Annuity Expert

Looking to save money? Check out our free CD calculator! This easy-to-use tool will help you determine your savings’ highest annual percentage yield. This information allows you to maximize your certificate’s savings and watch your money grow!

Cd Interest Calculator
Certificate Calculator
Cd Rates Calculator

Certificate Of Deposit (CD) Calculator

This free certificate of deposit calculator helps you calculate how much interest you pay to own CDs and other CD investments.

Earn The Highest Interest Rates On Savings Today

Fixed annuities are almost identical to Certificates of Deposit (CDs) accounts and provide higher interest rates and penalty-free withdrawals for income.

TermInsurance CompanyInterest Rate
N/AUFB Bank Savings Account5.02%
N/AUFB Bank Money Market5.02%
12 MonthsWestern Alliance Bank CD5.01%
36 MonthsOceanview Fixed Annuity5.00%
48 MonthsAmerico Fixed Annuity5.05%
5 YearsAspida Fixed Annuity5.50%
6 YearsAmerican National Fixed Annuity5.45%
10 YearsAmerican National Fixed Annuity5.45%
*Fixed annuities are only for saving money to use in retirement.

Disclaimer: This is a review. The Annuity Expert is not associated with a bank or credit union. However, fixed annuities are sold at most financial institutions. We aim to help you find the highest interest rates for your retirement savings. We may receive a small referral fee if you purchase something using a link in this article.

Find And Compare The Highest Interest Rates

Find the highest interest rates for your savings ranging from 3 months to 10 years, all in one place.

How to use this Simple CD Calculator

For optimum accuracy, you must gather three input values: initial deposit, months, interest rate, and compounding frequency. Then click Calculate. The result is the interest you earn on the CD terms and the value of your investments.

Our CD rate calculator determines the APY on deposits compounded quarterly, compounded daily, compounded monthly, compounded semi-annually, and compounded annually.

Let’s say we plan on buying a 12-month CD and depositing 5,000 dollars offering a 2.50% annual percentage yield (APY). Using this calculator, you should discover the CD worth $5,125 after a 12-month term.

How Do You Calculate A CD?

To calculate the return on a Certificate of Deposit (CD), you need to know the initial deposit amount, the annual interest rate, and the term length. The formula to calculate the return on a CD is:

Final Amount = Initial Deposit * (1 + (Interest Rate / number of compounding periods))^(number of compounding periods * term length in years)

For example, if you invest $10,000 for a 5-year CD with an annual interest rate of 2%, the formula would be:

Final Amount = $10,000 * (1 + (0.02 / 1))^(1 * 5) = $10,416

This means that at the end of the 5-year term, the investment will have grown to $10,416, including interest. It is important to note that inflation and other factors may affect the actual return on a CD.

CD Definitions


The initial deposit is the balance of your CD when it begins.


The CD will mature in this many months.


The advertised interest rate for this CD. Ensure you enter the actual interest rate, not the annual percentage yield (APY). Remember that these scenarios are fictional, and future interest rates can’t be accurately predicted.


This savings account calculator allows you to choose how often your CD’s interest income is added to your account, which affects when your accumulated interest income will generate additional interest. The more frequently this occurs, the sooner you’ll earn money from compound interest. You may wish to check with your financial institution to determine its policies regarding compounding frequency for CDs.


The APY (annual percentage yield) is the effective annual interest rate earned for this CD. It considers the compounding frequency and interest rate, which is a good metric for comparing different rates and frequencies for CDs.


To calculate the annual percentage yield (APY), you must use this formula: APY= (1 + r/n )n n – 1. In this equation, “r” equals the stated annual interest rate, and “n” is equal to the number of compounding periods annually.

How Much Interest Will I Earn From A CD?

The interest you earn from a CD depends on the APY, how long the term of the CD is, and how often it compounds. The more frequently it compounds, the more your money will grow over time. CDs usually compound either daily or monthly.


Most CDs credit interest monthly, though some may allow you to transfer the interest to a different account. How often CDs credit interest is one factor in choosing a CD; the other is how often it compounds. Generally, CDs compound daily or monthly. The more often CD compounds, the faster your savings will grow.


The answer to this question largely depends on the account. For most CDs, interest is credited monthly; some may even allow you to transfer the interest to a savings or money market account. Not only does how often a CD credits interest matter, but so too does how often the CD compounds. More generally speaking, CDs compound daily or monthly; the more frequently it happens, the faster your savings will grow.

What Are The Differences Between CDs, Savings Accounts, And Money Market Accounts?

CD’s accumulated interest has a set term length, which can be as little as one month or up to 10 years, though five years is more common.

Savings accounts and money market accounts are liquid, meaning they can be accessed at any time. However, there may also be some restrictions on transactions. For example, you might only be able to access your funds through an ATM card or wire transfer.

Most of the time, you cannot transact with a CD. Often, a CD can only be accessed 10 days after its maturity date (Although this number differs between banks). Also, if you try to access a CD early on, most likely, you will get charged an early withdrawal fee. Furthermore, the options for withdrawing from a CD are generally limited to either cash or transferring it into a checking account, savings account, or money market account.

What Happens If I Withdraw A CD Early?

A certificate of deposit usually incurs early withdrawal penalties that range from months to a year if they have been used by the banks or for the duration of their term. In addition to the long duration, the penalties can be higher. This penalty only exists if the CD’s terms expire. Try calculating the cost of revocation penalties. You could withdraw from a program at any stage of life without penalty.

Are CDs A Good Investment In 2023?

Certificates of deposit are a good investment in 2023 because the interest rates are at it’s highest in over a decade. Because these high-interest rates are TEMPORARY, the longer the term, the better to avoid interest rate risk. With that said, fixed annuities offer even higher interest rates than certificates.

As of March 2023, a certificate of deposit will pay between 4% and 5% APY, depending on the term, bank, financial institutions, or credit unions.

The longer the certificate term, the higher rates usually are. The terms usually range between 3 months and 5 years. Some banks will require you to withdraw your money before the terms are over.

Next Steps

With our free normal CD calculator, you can easily find the best certificate of deposit interest rates. This information allows you to maximize your savings and watch your money grow! With this easy-to-use tool, you can make sure that your hard-earned money is working for you. Contact us for a quote if you’re looking for more ways to save money. We would be happy to help you find the best way to use your money so that it works for you.

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Are cd interest rates fixed?

Certificate of deposit (CD) interest rates are generally fixed. This means that when you purchase a CD, the interest rate you earn on your investment will remain the same for the entire term of the CD. The interest rate is determined when you purchase the CD and is locked in for the term of the CD, which can range from a few months to several years. This is in contrast to other types of savings accounts or money market accounts, which may have variable interest rates that can change at any time.

How much of my CD is insured?

The Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA) insures up to $250,000.

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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