Calculate how much a certificate of deposit will be worth at maturity from your deposit, APY, and term length.
A certificate of deposit (CD) is a time deposit that locks your money in for a fixed term in exchange for a guaranteed, usually higher, interest rate. This calculator takes your deposit, the account's APY, and the term, then computes the value at maturity using Maturity = Deposit × (1 + APY)years. Because the APY already bakes in the bank's compounding schedule, you get an accurate figure without specifying how often interest is credited.
You agree not to touch the money for the term — anywhere from a few months to five years — so the bank can offer a higher, fixed rate than a regular savings account. Longer terms and larger deposits often earn the best rates, though the gap between terms shifts with the interest-rate environment.
Pulling money out before maturity usually triggers a penalty of several months' interest, which can wipe out your earnings. Only commit money to a CD if you're confident you won't need it during the term, and consider a CD ladder — several CDs maturing at staggered dates — to keep some funds accessible.
Tip: CDs at FDIC-insured banks are protected up to $250,000 per depositor, making them one of the safest places to earn a fixed return.
A CD locks in a rate, which is great when rates are falling but a drawback when they're rising. A high-yield savings account stays flexible but its rate can change anytime. Many savers split the difference, keeping liquid cash in savings and locking longer-term money in CDs.