Project your savings growth with fixed-rate certificates of deposit.
Months
Years
Daily
Monthly
Quarterly
Semiannually
Annually
Final Balance$0.00
Total Yield Earned$0.00
Maximizing Your CD Investment
A Certificate of Deposit (CD) is a powerful savings vehicle that offers a guaranteed rate of return over a fixed period. Unlike standard savings accounts, CDs typically offer higher yields in exchange for keeping your capital locked away for the duration of the term.
How the APY Works
The Annual Percentage Yield (APY) represents the real rate of return on your investment, accounting for the effect of compound interest. Compounding happens when the interest you earn begins to earn interest itself. Depending on the financial institution, this may happen daily, monthly, or quarterly.
Example Scenario:
If you deposit $10,000 into a 24-month CD with a 5.00% APY compounded monthly, you will end up with a final balance of $11,049.41. This results in a total yield of $1,049.41 just for letting your money sit securely.
Key Factors for CD Growth:
Principal Amount: The larger your initial deposit, the higher the absolute dollar amount you will earn in yield.
The Term Length: Generally, longer-term CDs (like 3 or 5 years) offer higher yields than short-term CDs (6 to 12 months).
Compounding Frequency: The more frequently interest is added to your balance, the faster your money grows. Daily compounding is the most beneficial for the depositor.
Early Withdrawal Penalties: Remember that CDs are designed to hold your money for the full term. Accessing funds early often results in a penalty equal to several months of interest.
function calculateCD() {
var principal = parseFloat(document.getElementById('initialDeposit').value);
var apy = parseFloat(document.getElementById('apyRate').value) / 100;
var term = parseFloat(document.getElementById('termLength').value);
var termUnit = document.getElementById('termUnit').value;
var n = parseFloat(document.getElementById('compounding').value);
if (isNaN(principal) || isNaN(apy) || isNaN(term) || principal <= 0 || apy < 0 || term <= 0) {
alert("Please enter valid positive numbers for all fields.");
return;
}
// Convert term to years
var t = (termUnit === "months") ? (term / 12) : term;
// Compound Interest Formula: A = P(1 + r/n)^(nt)
// However, APY already incorporates the effect of compounding within one year.
// To be precise for CD math: The relationship between periodic rate (r) and APY is APY = (1 + r/n)^n – 1.
// If the user provides APY, the effective growth formula is: Balance = Principal * (1 + APY)^t
var finalAmount = principal * Math.pow((1 + apy), t);
var earnedYield = finalAmount – principal;
document.getElementById('finalBalance').innerText = '$' + finalAmount.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalInterest').innerText = '$' + earnedYield.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('results-box').style.display = 'block';
// Smooth scroll to results
document.getElementById('results-box').scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}