CD Calculator

Calculate CD Returns

Initial Deposit ($)

Interest Rate (%)

Term Length (months)

Compounding Frequency

Withdraw Interest

Expected Reinvestment Rate (%)

Results

Total Interest

$0.00

Final Balance

$0.00

Monthly Interest

$0.00

APY

0.00%

Early Withdrawal Penalty

$0.00

Estimated penalty for early withdrawal (3 months of interest)

Understanding CDs

What is a CD?

A Certificate of Deposit (CD) is a time deposit that offers a guaranteed interest rate for a fixed term. Key features include:

Fixed term length
Guaranteed return
FDIC insurance
Higher rates than savings
Early withdrawal penalties

Types of CDs

Traditional CD
No-penalty CD
Step-up CD
Bump-up CD
Jumbo CD
IRA CD

CD Strategies

CD Ladder

A CD ladder involves buying multiple CDs with different maturity dates to:

Maintain liquidity
Take advantage of higher rates
Minimize interest rate risk
Create regular income

CD Barbell

A CD barbell strategy involves:

Short-term CDs for liquidity
Long-term CDs for higher yields
Skip middle-term CDs
Balance risk and return

Tips for CD Investing

Compare APY across institutions
Understand early withdrawal penalties
Consider inflation rates
Plan for interest rate changes
Review grace period policies
Keep track of maturity dates
Consider CD alternatives