CD (Certificate of Deposit) Calculator

About Certificates of Deposit

CDs are low-risk savings products that offer guaranteed returns. You deposit money for a fixed term (3 months to 5 years) and earn a fixed interest rate. CDs are FDIC-insured up to $250,000.

Key Features:

• Fixed Rate: Interest rate locked in for entire term
• FDIC Insured: Protected up to $250,000 per depositor
• Early Withdrawal Penalty: Typically 3-6 months of interest
• Higher Rates: Usually better than regular savings accounts

CD Ladder Strategy:

Divide your money across CDs with different maturity dates (e.g., 1, 2, 3, 4, 5 years). This provides regular access to funds while maintaining higher rates.