Is a CD the same as a savings account?

No. A CD usually locks funds for a set term in exchange for a stated APY, while savings accounts are generally more liquid and often variable-rate.

Does APY include compounding?

Yes. APY is an annual yield measure that reflects compounding under the disclosed assumptions.

Can a CD penalty be different from this estimate?

Yes. Banks define penalties in account disclosures, and they may use days or months of interest, fees, or other terms.

CD Calculator

Estimate certificate of deposit maturity value, interest earned, and an early withdrawal penalty scenario from deposit, APY, term, and compounding.

Opening deposit ($)

APY (%)

CD term (months)

Compounding frequency

Early withdrawal penalty (months of interest)

Early withdrawals can reduce earnings. CD disclosures, compounding rules, fees, taxes, and bank-specific penalty formulas can change the final amount.

What this CD calculator estimates

English CD calculator intent centers on certificate-of-deposit maturity value: opening deposit, APY, term length, compounding, and the impact of an early withdrawal penalty.

Opening deposit in dollars.
Annual percentage yield, or APY.
CD term in months and compounding frequency.
Interest earned, ending balance, estimated penalty, and balance after penalty.

Bank terms control

A real CD disclosure can define APY, maturity date, compounding, fees, renewals, call features, and early withdrawal penalties differently.

CD interest and penalty model

r_{p} = (1 + A P Y)^{1/ m} - 1

The calculator converts APY to a periodic rate for the selected compounding frequency.

B a l an ce = D e p os i t \cdot (1 + r_{p})^{m \cdot T er m /12}

The maturity estimate assumes interest remains on deposit through the term.

P e na l t y = D e p os i t \cdot A P Y \cdot P e na l t y m o n t h s /12

Penalty months are modeled as a simple interest estimate, not a bank disclosure.

CD terms to compare

Term	Why it matters
APY	APY reflects compounding and is commonly used to compare deposit offers.
Term	CDs usually require leaving money on deposit until maturity.
Early withdrawal penalty	Withdrawing early can reduce or eliminate earned interest.
Deposit insurance	Eligible CDs at FDIC-insured banks are covered up to applicable limits.

Frequently Asked Questions

Sources and References

Calculations are based on the listed reference sources. Links open in a new tab.

Updated: June 2, 2026

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