Worked example
Deposit $10,000 for 1 years at 4% a year and it matures at $10,407, which is $407 of interest.
- Deposit amount
- $10,000
- Interest rate (per year)
- 4%
- Time period
- 1 years
- Interest earned
- $407
- Maturity value
- $10,407
| Year | Interest so far | Value |
|---|---|---|
| 1 | $407 | $10,407 |
How to use this calculator
- Enter the amount you’ll deposit.
- Enter the CD’s interest rate and term.
- Pick how often interest compounds — the APY updates as you go.
Deposit insurance: FDIC, “Deposit Insurance” (fdic.gov), checked 9 Oct 2026. Interest compounds at the chosen frequency; the result assumes the CD is held to maturity.
Frequently asked questions
What’s the difference between the interest rate and APY?
The interest rate is the nominal yearly rate; APY (annual percentage yield) includes the effect of compounding. A 4% rate compounded monthly is an APY of 4.07%. Comparing CDs by APY puts every offer on the same footing.
How much will my CD earn?
$10,000 at 4% for 12 months grows to $10,407. Locked in for five years at the same rate, it would reach $12,210.
Are CDs insured?
CDs at FDIC-insured banks are covered by FDIC deposit insurance, which protects deposits to at least $250,000 at each insured bank. Credit unions have similar NCUA coverage.
What happens if I cash out early?
Most CDs charge an early withdrawal penalty, often a set number of months of interest. Check the terms before you open one — the calculator assumes you hold to maturity.
Is CD interest taxable?
Interest is generally taxable in the year it’s credited, even if you don’t withdraw it, unless the CD is held in a tax-advantaged account such as an IRA. Figures here are before tax.