Understanding the cd calculator
A certificate of deposit locks your money with a bank for a fixed term in exchange for a fixed rate, usually higher than a regular savings account, and is FDIC-insured up to the legal limits. The cost is liquidity: withdrawing before maturity typically forfeits several months of interest.
CD rates move with the interest-rate environment, so laddering splitting money across CDs of staggered maturities is a common way to capture longer-term rates while keeping some cash coming free every few months. When comparing offers, use APY rather than the nominal rate so compounding frequency doesn't distort the comparison.
Results are estimates for education only and are not financial advice.