A Certificate of Deposit (CD) calculator computes the maturity value and interest earned on a fixed-term bank deposit.
About this calculator
A Certificate of Deposit (CD) calculator computes the maturity value and interest earned on a fixed-term bank deposit. CDs are a low-risk savings instrument that lock your money for a fixed period in exchange for a guaranteed return.
CDs are similar to Fixed Deposits in India, offering guaranteed returns with FDIC insurance (in the US) or deposit insurance (in India through DICGC up to ₹5 lakh).
Common uses
- Calculate CD returns at a given bank rate and term
- Compare 6-month vs 1-year vs 2-year CD rates
- Plan a CD ladder for liquidity and higher average returns
- Determine total interest earned from a CD investment
Frequently asked questions
What is a Certificate of Deposit (CD)?
A CD is a fixed-term bank deposit with a guaranteed interest rate. You agree to leave your money deposited for a specific period (term), and the bank pays you a fixed interest rate higher than a regular savings account. Early withdrawal typically incurs a penalty.