CD Calculator – Use Our Free Tool to Determine Your Savings

When it comes to saving your money, you have many options. If you are ready to move beyond a traditional savings account and reach your savings goals faster, consider certificates of deposit (CDs) offered by banks, credit unions, and a variety of financial institutions.

What is a Certificate of Deposit?

CDs are a type of high-yield savings account that earns more than traditional savings accounts. FDIC insured like traditional savings accounts, the differences are your funds must remain in the account for a fixed period in order to receive the higher annual interest rate offered and you cannot add additional funds to your CD unless you have an add-on at the start.
If you withdraw your funds before the CD reaches its maturity date, you could pay hefty early withdrawal penalty fees. However, with higher interest rates if you have money you want to set aside and will not need immediately, you have the opportunity to get a higher rate of return. For example, the national interest rate average on savings accounts is only .04% while the average for CDs is 0.18%. CDs also come with a fixed interest rate rather than the adjustable rating found at banks.

CD Calculator

Using the following certificate of deposit calculator, you can compare what your earnings would be based on your deposit, CD term length, and different interest rates.

CD Calculator

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Types of CD accounts

There are several different CDs besides the traditional CD with different penalties and features.
  • Add-on CDs. As mentioned, CDs are typically set with your initial deposit amount but with an add-on, you can add more funds into the CD throughout its term.
  • Brokered CDs. This type of CD is purchased through a brokerage, which may have options to multiple banks and can find you the best rates.
  • Bump-up (or step-up) CDs. If you put your money into a CD and discover a higher interest rate, your bank will allow you to "bump up" your interest rate, typically once per year.
  • Callable CDs. Be wary of these CDs as they are often promoted with higher interest rates but, as the name implies, can be "called" by the bank and made invalid once a certain period of time passes, meaning you may not reach maturity with these.
  • CD Ladders. These CDs allow you to invest your money in a series of CDs that have varying term lengths so you have access to funds throughout the long term while still taking advantage of compounding at a higher amount of interest.
  • Jumbo CDs. These are those with bigger bank accounts. You'll need at least $100k for a jumbo CD.
  • Liquid or no-penalty CDs. If you are nervous about locking your money away for a term, these CDs allow you to take out funds before maturity without penalties. The catch is you won't get the best interest rate.
  • Long-term CDs. These are good for 1 year or more with the annual percentage yield (APY) higher the longer you set your term.
  • Short-term CDs. Great for beginners and those nervous about CD investment, you can find CDs available from 3 months to 1 year.
  • Variable-rate CDs. While traditional CDs set the rates, these can fluctuate, which means if the interest rates rise, you're not stuck in a CD with a low interest rate. They can also drop.
  • Zero-coupon CD. Instead of paying you interest once your CD matures, banks provide it upfront at the end of every year so you can earn interest on your interest like in a bank. With this CD you will be taxed on earning from the interest earnings.

Best CD Rates

Banks and credit unions offer many CDs so finding the best rate can be tough. Here are a few of the highest rates you will find.
  • Marcus by Goldman Sachs. With as little as $500 and terms as low as 9 months, you can receive 0.65% APY with this limited-time offer by the online bank. After the offer is gone, Marcus still has great rates with 0.55% for a 1-year term and 0.60% for 5 years.
  • CiT Bank. Those with $200 can turn to CIT Bank and its low minimum that returns 0.50%. Still too much? Deposit $100 and receive 0.45%.
  • Synchrony Bank. With no minimum deposit amount required, you will find 0.50% APY for 1-year CDs. If interest rates go up within 15 days of the account opening, Synchrony will automatically give you the higher rate.
  • American Express. Also providing no minimum for your initial deposit, American Express provides 0.55% APY. You can choose from 6-month to 5-year terms.

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