Free tool · Fairfield, CA
CD Calculator
A certificate of deposit pays a fixed rate for a fixed term. The interest you earn is your deposit multiplied by (1 + APY) raised to the term in years, minus the deposit. Enter the numbers from any bank or credit union offer to see the interest at maturity, the ending balance and how much more it earns than a regular savings account.
Estimates only — not financial advice. Confirm APY, term and early-withdrawal terms with your bank or credit union.
How is CD interest calculated?
APY already includes compounding, so the growth is deposit × (1 + APY)^(months ÷ 12). A $10,000 CD at 4.5% APY for 12 months earns exactly $450; for 24 months it earns $920 because the second year's interest compounds on the first.
Which CD term should I choose?
Match the term to when you need the money — early withdrawal penalties usually cost three to twelve months of interest. When rates are expected to fall, longer terms lock in today's rate; when rates are rising, shorter terms or a CD ladder keep you flexible.
Bank or credit union CD?
Credit unions frequently pay higher APYs on CDs (called share certificates) and are insured by the NCUA to the same $250,000 as FDIC banks. Compare local California credit unions before settling on a national bank.
Worked example
$10,000 in a 12-month CD at 4.5% APY earns $450 and matures at $10,450. The same money in a 0.45% savings account earns $45 — the CD pays ten times more for giving up access for a year.
Frequently asked questions
Are CDs FDIC insured?
Yes, up to $250,000 per depositor per bank. Credit union certificates have equal NCUA coverage.
What is the difference between APY and interest rate?
APY includes compounding; the rate does not. Always compare APY.
What happens at maturity?
Most CDs auto-renew at the current rate unless you act within a grace period, usually 7–10 days.
Is CD interest taxable?
Yes, as ordinary income in the year it is credited, even if you do not withdraw it.
What is a CD ladder?
Splitting money across several terms so one CD matures regularly, combining higher long-term rates with access.
Can I add money to a CD?
Rarely. Most CDs are single-deposit; some add-on CDs allow deposits.
Need business financing in Fairfield?
Creekfield Financial is a commercial loan broker — if you need working capital rather than a place to park cash, we can help: