CD Rate Calculator
Compare certificate of deposit rates from different banks. Calculate your CD returns based on interest rates, terms, and compounding frequency.
CD Details
Total: 12 months (1.0 years)
Rate Comparison: Interest Earned
Rate Sensitivity Analysis (±0.5%)
Impact: A 0.5% rate change results in approximately $52.69 difference in interest (before tax).
What is a CD Rate Calculator?
A CD rate calculator is an essential tool for comparing certificate of deposit rates from different banks and financial institutions. With CD rates varying significantly between providers, our calculator helps you:
- Compare CD rates across multiple banks
- Calculate returns based on different interest rates
- Understand how rate changes affect your earnings
- Make informed decisions about CD investments
How CD Rates Work
CD rates are determined by several factors including the Federal Reserve's interest rate policy, bank competition, term length, and deposit amount. Longer-term CDs typically offer higher rates, while larger deposits may qualify for premium rates.
Our CD rate calculator uses the compound interest formula to show you exactly how much you'll earn at different rates, helping you find the best CD rates for your investment goals.
Factors That Affect CD Rates
Federal Reserve Policy
When the Fed raises rates, CD rates typically increase. When rates fall, CD rates follow.
Term Length
Longer terms (3-5 years) usually offer higher rates than shorter terms (3-12 months).
Bank Competition
Online banks often offer higher rates than traditional banks to attract deposits.
Deposit Amount
Some banks offer premium rates for larger deposits (e.g., $25,000+).
How to Compare CD Rates
When comparing CD rates, always use APY (Annual Percentage Yield) rather than APR. APY accounts for compounding frequency and gives you the true return. Our CD rate calculator automatically calculates APY for accurate comparisons.
Pro Tip:
Compare rates from at least 3-5 different banks. Online banks and credit unions often offer the best CD rates. Use our calculator to see the exact difference in earnings.
Current CD Rate Trends
CD rates fluctuate based on economic conditions and Federal Reserve policy. As of 2024, CD rates have been rising, making CDs an attractive option for conservative investors seeking guaranteed returns.
Use our CD rate calculator to see how current rates compare to historical averages and determine if now is a good time to lock in a CD rate.