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CD calculators are used to help you figure out your return on a certificate of deposit investment. CD Calculators are available online at different personal financial websites. There are a bunch of CD calculators available but not all CD calculators have all the bells and whistles.

When you invest in a certificate of deposit you’re making one of the safest investment available. Your return won’t be as high as it will be investing in other areas but at least you know your principal is safe.

When you invest in a certificate of deposit your money is locked up for the term of the certificate of deposit. You don’t have access to your funds before the maturity date unless you pay a penalty by forfeiting some of the interest. Now that you know what a certificate of deposit is we will talk about CD calculators. Source: MonitorBankRates.com

CD Calculator

To calculate how much interest your certificate of deposit interest will earn you have to factor in the enter the term of the certificate of deposit, how much money you plan to out into the certificate of deposit and the current CD annual percentage yield.

When you have those three calculations entered you just let the CD calculator do the work for you by calculating how much money you’ll make. There are CD calculators available online will also show you how much interest your CD account will earn each month.

Some CD calculators also help you figure out how much interest the interest you already earn will earn. This is called compound interest. Compound interest is what give us the annual percentage yield. Compound interest is also why the APY is higher than the CD rate.

You can also use a CD calculator to figure out how much money you will make on your savings account deposit. This assumes the savings account rate will stay the same.