Certificate of Deposit (CD) Calculator

A CD is a savings product from a bank or credit union that pays a fixed interest rate for a set term. In exchange for locking your money away, CDs typically pay higher rates than regular savings accounts.

Most banks charge an early-withdrawal penalty, usually a portion of the interest earned (for example, 3 months of interest for terms under 1 year, or 6 months for longer terms). Check your bank's policy before opening a CD.

The nominal rate is locked for the full term. However, if you choose to reinvest or roll over at maturity, the new rate depends on prevailing market rates, which may be higher or lower.

CDs almost always earn more because they require you to lock up funds for a fixed term. Savings accounts offer liquidity with lower rates. A CD ladder can capture higher rates while keeping some money accessible.

Yes. Interest earned on a CD is generally reported as income and subject to income tax in most countries, even if you don't withdraw it until maturity.

A CD ladder splits your money across CDs with different maturity dates (e.g., 6, 12, 18, 24 months). As each matures, you reinvest at the current rate, balancing yield and liquidity.