Estimate your earnings on long-term Certificates of Deposit
Daily (Standard)
Monthly
Quarterly
Annually
Total Interest Earned:–
Future Value (Maturity):–
Effective Return:–
Maximize Your Savings with a 5-Year CD Strategy
Certificates of Deposit (CDs) offered by major institutions like Wells Fargo provide a secure way to grow your savings with a guaranteed interest rate. When you commit to a 5-year term, you are often rewarded with higher rates compared to short-term savings accounts, allowing your money to compound significantly over time.
How This Calculator Works
This tool utilizes the compound interest formula to project the future value of your deposit. Here is how the metrics are defined:
Opening Deposit: The principal amount you invest at the start of the CD term.
APY (Annual Percentage Yield): The effective annual rate of return, taking into account the effect of compounding interest. Wells Fargo standard CDs typically compound interest daily.
Term Length: While focused on the 5-year benchmark, you can adjust this field to compare against 1-year or 3-year options.
Understanding Wells Fargo CD Rates
Wells Fargo typically offers two types of CD rates:
Standard Rates: These are the baseline rates available to all customers for standard terms.
Special Fixed Rates: Often available for specific terms (e.g., 5 months, 11 months) or requiring a minimum balance (often $5,000 or more).
For a 5-year term, locking in a rate protects you against market fluctuations. If interest rates drop in the future, your money continues to earn at the higher rate you locked in today.
The Power of Daily Compounding
Most major bank CDs, including those from Wells Fargo, compound interest daily and pay it monthly or at maturity. This calculator defaults to daily compounding (365 times per year) to provide the most accurate estimation of your Annual Percentage Yield (APY).
* This calculator is for estimation purposes only. Actual returns may vary based on exact account terms, leap years, and specific Wells Fargo product rules. We are not affiliated with Wells Fargo.
function calculateCDReturns() {
// 1. Get Input Values
var principal = parseFloat(document.getElementById('initialDeposit').value);
var apy = parseFloat(document.getElementById('apyRate').value);
var years = parseFloat(document.getElementById('termLength').value);
var compoundsPerYear = parseFloat(document.getElementById('compoundingFreq').value);
// 2. Validation
if (isNaN(principal) || principal <= 0) {
alert("Please enter a valid deposit amount.");
return;
}
if (isNaN(apy) || apy < 0) {
alert("Please enter a valid APY percentage.");
return;
}
if (isNaN(years) || years <= 0) {
alert("Please enter a valid term length.");
return;
}
// 3. Calculation Logic
// Formula: A = P(1 + r/n)^(nt)
// Note: APY is usually the effective rate, but for calculation input we treat it as the nominal rate 'r' roughly
// for standard compounding calculators unless specifically converting APY back to APR.
// For simplicity and standard expectations in these tools, we treat input rate as the nominal annual rate used in the formula.
var rateDecimal = apy / 100;
var totalCompounds = compoundsPerYear * years;
var base = 1 + (rateDecimal / compoundsPerYear);
var maturityValue = principal * Math.pow(base, totalCompounds);
var totalInterest = maturityValue – principal;
var effectiveReturn = (totalInterest / principal) * 100;
// 4. Formatting Output
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 2,
maximumFractionDigits: 2
});
// 5. Update DOM
document.getElementById('totalInterestResult').innerText = formatter.format(totalInterest);
document.getElementById('maturityValueResult').innerText = formatter.format(maturityValue);
document.getElementById('effectiveReturnResult').innerText = effectiveReturn.toFixed(2) + "% Total ROI";
// Show results
document.getElementById('resultContainer').style.display = 'block';
}