Estimate a certificate of deposit's maturity balance, interest, annual projections, optional deposits, and an illustrative early-withdrawal penalty.
A certificate of deposit, or CD, is a deposit account that generally pays a stated yield in exchange for leaving funds deposited for a fixed term. At maturity, the institution returns the deposit plus reinvested interest; interest paid out during the term is received separately.
CD terms, rate guarantees, deposit rules, renewal policies, insurance coverage, and early-withdrawal penalties vary by institution. Review the account disclosure before opening or withdrawing from a CD.
Converts nominal APR to an effective annual yield using the selected number of compounding periods.
Effective annual yield = (1 + APR ÷ n)^n − 1When APY is selected, it already represents the effective annual yield. The monthly projection uses the equivalent monthly growth factor.
Future value = Deposit × (1 + APY)^yearsThe estimate uses either the entered flat amount or the selected number of months of projected interest. Actual bank methods can differ.
Net proceeds = Balance at withdrawal − Estimated penaltyA $10,000 deposit earning a 4% nominal APR, compounded monthly for five years with interest reinvested, grows to approximately $12,209.97. Estimated interest earned is $2,209.97. The implementation retains full precision and rounds only displayed amounts.
APY includes compounding and is usually the clearest way to compare deposit yields. Nominal APR needs the compounding frequency to determine its effective yield.
Reinvested interest compounds within the CD. Paid-out interest generally does not increase the CD balance unless deposited elsewhere.
Some CDs renew automatically after a grace period. Confirm the maturity date and institution's withdrawal or renewal instructions.
Most traditional CDs do not accept deposits after opening. Enable this assumption only for an add-on CD or another product that explicitly permits them.
Compounding determines how a nominal APR becomes an effective annual yield. This projection converts the resulting annual yield to an equivalent monthly factor. If interest is paid out, it is tracked separately instead of being added back to principal.
The estimated maturity date is the start date plus the selected number of calendar months, using the last valid day when a destination month is shorter. A five-year term therefore ends 60 calendar months after its start.
Banks may calculate penalties using simple interest, accrued interest, a stated number of days or months, tiered rules, or a flat charge. Some penalties can reduce principal. This calculator provides a scenario estimate, not the contractual payoff amount.
A CD is a time deposit that generally offers a stated yield for keeping money deposited until a specified maturity date.
APY reflects compounding over a year. Nominal APR states an annual rate before the effect of the selected compounding frequency.
For the same nominal APR, more frequent compounding generally produces a slightly higher effective annual yield. If the same APY is entered, the effective annual growth is already specified.
Paid interest is tracked as cash received and is not added to the CD balance, so it does not compound inside the account.
Many traditional CDs do not permit additional deposits, but some add-on CDs do. Check the product's terms before using that assumption.
Depending on the institution and your instructions, you may withdraw the proceeds, transfer them, or allow the CD to renew after a grace period.
Rules vary. A bank may charge a stated number of days or months of interest, a flat amount, or another contractual formula.
The stated rate is generally fixed for a traditional CD, but access, penalties, renewal terms, and deposit-insurance eligibility depend on the institution and account.
General educational sources on time deposits and deposit insurance.