A Certificate of Deposit APY Calculator helps you estimate earnings from CD investments. First, it projects interest over time. Next, it accounts for compounding frequency. Additionally, it shows total maturity value. Furthermore, it compares different CD terms. Moreover, it helps maximize savings growth. Consequently, you make informed investment decisions.
APY means Annual Percentage Yield. Essentially, it reflects real yearly earnings. Importantly, it includes compounding effects. Therefore, APY differs from simple interest rates. Ultimately, it shows actual investment growth.
Firstly, our calculator is incredibly accurate. Secondly, it's completely free to use. Thirdly, it provides instant results. Fourthly, it supports various compounding options. Finally, it helps compare different scenarios.
A Certificate of Deposit is a savings certificate. Specifically, it has a fixed interest rate. Also, it has a fixed date of withdrawal. Moreover, it has a fixed term length. Generally, CDs offer higher rates than regular savings.
APY represents effective annual return. Particularly, it includes compound interest. In other words, interest earned on interest. Therefore, APY gives true earnings picture. Consequently, it's crucial for comparing CDs.
APY matters significantly for savers. Initially, it reveals actual growth potential. Furthermore, it helps compare different banks. Similarly, it shows compounding benefits. Ultimately, higher APY means more earnings.
APY: 5.12% | Total Interest: $511.62
Unlike basic CD calculators, ours:
The formula for calculating Certificate of Deposit APY is:
Where:
The maturity value formula is:
Where:
Our calculator uses precise mathematical formulas. First, it converts annual rate to periodic rate. Then, it calculates compounding periods. Next, it applies interest to principal. After that, it compounds at selected frequency. Finally, it computes final maturity value.
Additionally, it determines the actual APY. This reflects true annual yield. Moreover, it shows interest earned. Consequently, you understand investment growth. Ultimately, it helps compare CD offers.
| Term Length | Interest Rate | Compounding | APY | $10,000 Maturity Value |
|---|---|---|---|---|
| 6 months | 4.50% | Monthly | 4.58% | $10,227.82 |
| 1 year | 5.00% | Monthly | 5.12% | $10,511.62 |
| 2 years | 5.25% | Quarterly | 5.35% | $11,102.03 |
| 3 years | 5.50% | Monthly | 5.64% | $11,768.24 |
| 5 years | 5.75% | Daily | 5.92% | $13,366.37 |