Calculator for Cd Rates

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Understanding Certificate of Deposit (CD) Rates

A Certificate of Deposit (CD) is a savings product offered by banks and credit unions that provides a fixed rate of interest over a fixed period of time. Unlike regular savings accounts, you agree to keep your money deposited for the entire term to earn the advertised Annual Percentage Yield (APY). If you withdraw funds before the maturity date, you typically incur a penalty, which can eat into your earned interest or even principal.

When choosing a CD, several factors are crucial:

  • Principal Amount: This is the initial amount of money you deposit into the CD.
  • Term Length: This is the duration of the CD, ranging from a few months to several years. Longer terms often come with higher interest rates, but tie up your money for longer.
  • Annual Percentage Yield (APY): This is the total amount of interest you will earn on your deposit in a year, taking into account the effect of compounding. APY is the standard way to compare different CD offers.

Understanding how your potential earnings will grow is key to making an informed decision. Our CD Rate Calculator helps you estimate the interest you can earn based on these variables, allowing you to compare different CD options effectively.

CD Interest Calculator

Estimated Earnings:

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