CD Calculator: How To Maximize Your Savings Accounts

Shawn Plummer

CEO, The Annuity Expert

Certificates of Deposit (CDs) provide a low-risk investment option for individuals looking to grow their savings. However, understanding the factors that influence your return on investment can be challenging. A CD calculator can help simplify this process by allowing you to compare different CDs and make informed decisions.

Cd Interest Calculator
Certificate Calculator
Cd Rates Calculator

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 CompanyAPY
N/AMoney Market Account – Optimum Bank5.26%
N/AMoney Market Account – FVC Bank5.26%
N/ASavings Account – CloudBank 24/7 5.26%
12 MonthsBread Savings CD5.50%
48 MonthsClear Spring Fixed Annuity5.15%
5 YearsAthene Fixed Annuity5.30%
10 YearsEquitrust Fixed Annuity6.00%
*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 guide.

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, monthly, 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 must 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.

Certificates of Deposit Basics

What is a Certificate of Deposit (CD)?

A Certificate of Deposit (CD) is a time deposit banks and credit unions offer. It generally offers higher interest rates than traditional savings accounts, with limited access to your funds for a specified term.

CD terms and interest rates

When you open a CD, you agree to deposit money for a specific period called the term. In return, the financial institution pays you interest on your deposit. Therefore, the interest rate is usually higher for longer terms and more significant deposits.

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.

Cd Rate Calculator

Tips for Utilizing CD Calculators

Compare multiple options

Use CD calculators to compare different CDs from various financial institutions to find the best interest rates and terms for maximizing your investment returns.

Factor in early withdrawal penalties

Remember that withdrawing funds from a CD before maturity may result in penalties. Therefore, ensure you understand the potential consequences of early withdrawal before investing in a CD.

Reinvest or ladder your CDs

Consider reinvesting the interest earned from a CD or employing a CD laddering strategy. This approach involves investing in multiple CDs with staggered maturity dates, allowing you to take advantage of changing interest rates while maintaining access to your funds.

Monitor your CDs

Keeping track of your CDs to stay aware of their maturity dates is essential. This will help you make informed decisions about reinvesting or withdrawing your funds when necessary.

Additional CD Investment Resources

Financial advisors

Consulting with a financial advisor can provide personalized guidance on selecting the best CD for your financial goals and risk tolerance.

Online resources

Various online resources, such as Bankrate and NerdWallet, offer tools and information on CD investing. These platforms provide up-to-date interest rates and helpful guides on maximizing your CD investments.

Financial institutions

Many banks and credit unions offer educational materials and customer support to help you navigate CD investments. Don’t hesitate to reach out to your financial institution for assistance.

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 September 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.

Cd Calculator

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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.

How much will a $10,000 dollar CD earn?

The interest earned on a $10,000 CD depends on the interest rate, term length, and compounding frequency. For example, if you invest in a CD with a 2% annual interest rate for 1 year compounded annually, you would earn $200 in interest. To determine the interest earned in other scenarios, use a CD calculator and input the relevant information (principal amount, interest rate, term length, and compounding frequency).


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” equals 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. CDs usually compound either daily or monthly.

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

CDs offer higher interest rates but require you to lock in your funds for a specific term, limiting access. Savings accounts provide moderate interest rates with greater accessibility to funds but may have transaction limits. Money market accounts typically offer higher interest rates than savings accounts and come with check-writing privileges and a debit card. Still, they often require higher minimum balances and may also have transaction limits.

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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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