Use our free CD Calculator when you need to quickly make a calculation. For people who are trying to get a good return on their investment, a CD or certificate of deposit may be just the thing they are looking for. One advantage of a CD is that it presents a fairly low risk. Banks typically offer CDs to their customers so they can provide a higher interest rate than can be earned in a conventional savings account.
If you are curious about purchasing a CD, you may feel overwhelmed by all the options available to you. Each bank you visit may offer CDs of different rates, and you will need to compare them to see which one is a good fit for you.
Our CD calculator enables you to examine the ending balance that you will earn when the CD reaches maturity. You can sit in the comfort of your home calculating different CDs using different interest rates, deposit amounts and amount of time until maturity.
Using the online CD Rate Calculator requires users to enter the following information:
Type in the annual interest rate for the CD. For example, type in “3.” You can get the annual interest rate for any CD you are interested in from the financial institution that offers it, such as your bank.
Type in the CD duration in days. For example, type in “90” for a 90-day certificate of deposit.
Type in the opening deposit. This is the amount that you initially pay into the CD.
Click the “Calculate!” button to perform the calculation. You will see the ending balance, based on the numbers you input. For example, a CD with an annual interest rate of 2 with a duration of 365 days and for which you put in an opening deposit of $500 will result in you earning an ending balance of $510.10.
How Do CDs Work?
A CD requires you to deposit a certain amount of money for a set amount of time, such as six months or three years. The financial institution offering the CD, such as your bank, will pay interest to you on a regular basis. At the end of the CD’s period, such as after three months or five years, it matures and you will get back the money you initially deposited, along with the interest earned over the investment period.
If you redeem a CD before it has matured, the financial institution may require you to pay a fee for early withdrawal. It’s prudent to invest in a CD only when you are confident that you can leave the money alone for the specified period until maturity. Otherwise, you are subject to losing all the money you would have earned in interest.
Where Can I Get a CD?
People often get a CD at their bank or credit union. You may see advertisements for the institution’s CDs in brochures in the local branch, or in newsletters that are mailed to your home or email address.
Stock brokerage firms also offer CDs to customers. Your stockbroker can provide you with information about the types of CDs. Companies that specialize in selling CDs are referred to as deposit brokers.
Make sure that the financial institution is insured by the Federal Deposit Insurance Corporation. The FDIC insures deposits to at least $250,000 for each account at each insured bank. If you are unfamiliar with an institution offering you a CD, use the FDIC’s Bank Find website to look up information about it. You’ll need the name and address of the bank to search for it on Bank Find.
Let's be honest - sometimes the best cd calculator is the one that is easy to use and doesn't require us to even know what the cd formula is in the first place! But if you want to know the exact formula for calculating cd then please check out the "Formula" box above.
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