Know what’s in store for your money with the help of a CD calculator.
A certificate of deposit, or CD, is a type of high-interest savings account that is closed for withdrawals or deposits for the length of time that you choose. Interest is calculated at a fixed rate, and any payments made while the term is in place are made to a separate account, allowing you to know precisely how much you earn.
If you have a particular goal in mind that you are trying to reach, a CD calculator can help you determine how much you need to deposit and for how long the terms should be in order to reach that goal. Being that the rates are fixed, and not subject to change while your money is locked up, it is easy to determine how much interest you’ll earn by using the calculator.
How do I use the CD calculator?
Fill in the relevant fields with the correct information to get the details you need to help you decide which certificate of deposit to choose.
- Deposit amount. This is the amount of money you plan to save in the CD.
- Interest rate. Input the listed interest rate for the certificate of deposit you’re investigating. Pay attention to the details, as in most cases that amount will be different depending on a number of factors, including the length of the term, how much you deposit and how often you’re receiving interest payments.
- Length of time. This is the number of years you’ll be saving for. You can enter a fraction of a year if your CD term is something like 6 months or 18 months.
Use current CD rates to calculate
A certificate of deposit can help you grow your savings in a low-risk and predictable way. The longer your term length, the more money you’ll earn — especially if you get a CD with a competitive interest rate.