Certificate of Deposit (CD) Calculator
A Certificate of Deposit, or CD, is a common type of deposit account which holds funds for a specific period time (or a “term”) while earning interest. Term lengths vary from one month to a year or more, and interest rates can vary based on the length of the term among other factors. Generally, CDs with longer terms offer higher interest rates. Likewise, the more money that is deposited into a CD, the more money can be earned in interest during the term. Use the CD interest calculator below to calculate potential earnings.
What is a Certificate of Deposit?
As mentioned above, a Certificate of Deposit or CD is an interest-bearing account opened for a specific period of time that earns a fixed interest rate on the amount initially deposited. There are no monthly fees attached to Leader Bank Certificate of Deposit accounts so you are guaranteed a specific amount of return at the account’s maturity date as long as no early withdrawals are made.
What Are the Benefits of CD Accounts?
Certificate of Deposit accounts are an effective way to grow your savings. As CDs offer a specific interest rate that is set at the time you make your deposit, you’ll know exactly how much interest you will earn on your deposit so long as you maintain your CD to the end of your account term. In most cases, if you’re willing to open an account with a longer term, then your interest rate will likely to be higher. For specific interest rates on current terms, please contact your local branch or our Client Services Team at 781-641-8686.
What is the Interest Paid on a CD Account?
Interest rates for Certificate of Deposit accounts depend on the products and rates available at the time you open your account. The rate you receive at the time you open your account is locked in, so you’ll be able to calculate your exact return over the specified term for your CD. This means that if market interest rates go down after your account is opened, you’ll still receive the higher rate that was established when you opened your account during the term of your CD. If you choose to renew your CD at the end of the term, or “maturity,” then we will inform you of what interest rate you can earn in your next renewal term if you choose to do so.
Are There Monthly Fees for Certificate of Deposit Accounts?
While banks approach CD account fees and charges different, Leader Bank Certificates of Deposit accounts have absolutely no monthly fees attached!
Withdrawing from a CD Before Maturity
Certificate of Deposit accounts have a penalty fee associated with making a withdrawal before the account reaches the end of the term established at opening. The amount of the fee will depend on the length your CD term, with longer term CDs having higher fees for early withdrawal. For more information about this fee, please contact our Client Services team at 781-641-8686.
APY vs. APR
Knowing the difference between Annual Percentage Yield (APY) and Annual Percentage Rate (APR) is important when looking at interest rates for Certificate of Deposit accounts. APR is the annualized representation of the total cost that you will pay (including interest and fees) for loans or other debts, such as mortgages and credit cards. In contrast, APY is a representation of what you will earn when making interest-accruing deposit accounts like Certificates of Deposit. Specifically, APY represents the amount of interest earned, including compound interest, over the period of an entire year.
How to Use a Certificate of Deposit Calculator
You can calculate the return on a Certificate of Deposit account using the CD interest calculator above by entering your initial deposit amount, term in months, interest rate, and selecting how the interest is compounded. By clicking “View Report” you’ll be able to view your account balance at the end of your CD term as well as the account total at the end of each month or year (depending on how your account is compounded) of your account term.
