How much will my CD be worth at Maturity?

What is a certificate of deposit (CD)?

A certificate of deposit is a fixed-term savings account offered by banks and credit unions. You deposit a set amount of money for a specified period, known as the term, and earn interest at a fixed rate.

Funds remain locked in until maturity, and early withdrawals may incur penalties. CDs issued by FDIC-insured banks, like Associated Bank, are protected up to $250,000 per depositor, per institution, making them a low-risk way to grow savings.

How to use this CD calculator

Sample numbers are provided so you can see how the calculator works before entering your own details.

1. Enter Your Initial Deposit Amount: Type the amount you plan to invest in the CD at the start.
2. Input the Annual Percentage Yield (APY): Use the APY provided by your bank for the CD you’re considering. This figure includes the effects of compounding.
3. Select the Term Length in Months: Choose how long your money will remain in the CD before it matures.
4. View Your Maturity Value: The calculator will display the total value of your CD at the end of the term, including both your original deposit and the interest earned.

Tip: Adjust the APY and term length to compare different CD options and see how changes affect your total return.

How to read your CD calculator results

The large number at the top is your maturity value, representing the total amount your CD will be worth at the end of the term based on the deposit amount, APY, and term length you entered. This value includes both your original deposit, and all the interest earned.

Below, the line graph shows how your CD’s value grows over time:

• X-Axis (Months): The length of your CD term, from month 1 to maturity.
• Y-Axis (Value): The dollar value of your CD at each point in time.
• Line Progression: The upward slope reflects your savings growth through interest accumulation.

Use the maturity value to see your final total and the graph to visualize how your money grows month by month.

Tip: Use these results to compare different CDs, see the impact of varying APYs or term lengths and decide which option best fits your savings goals.

How should you calculate CD interest?

The interest on a certificate of deposit is typically calculated using this process:

Maturity Value = P x (1 + r/n)ⁿᵗ, where:

Where:

𝑃 = Initial Deposit

𝑟 = APY (as a decimal)

𝑛 = Compounding periods per year

𝑡 = Term in years

Example:

If you deposit $10,000 in a 12-month CD with an APY of 4.00% compounded monthly:

Maturity Value = 10,000 × (1 + 0.04/12)¹²ˣ¹ = $10,407.41

This approach ensures your account for both the interest rate and the compounding schedule, giving you an accurate estimate of your earnings.

Glossary of CD terms

Initial Deposit: The amount of money you place into a certificate of deposit (CD) when opening it. It's your starting principal that will generate interest over the CD’s fixed term. Typically, no additional contributions are allowed during the term.

Annual Percentage Yield (APY): The actual yearly return on your deposit, including the effects of compounding. APY gives a standardized way to compare different CDs and offers, since it assumes the interest rate stays in the CD and compounds over time.

Term Length in Months: The duration of the CD in whole months, determining how long your funds remain locked in the CD. At maturity, you receive your principal plus earned interest. 

Explore additional common banking terms and definitions.

What should I know when choosing CDs?

• Interest Rate/APY: Compare interest rates. Even small differences can significantly affect earnings over time.
• Term Length: Choose a term that aligns with when you’ll need access to your funds. Longer terms usually offer higher rates but require a longer commitment. Associated Bank offers terms ranging from 30 days to 5 years (60 months).
• Early Withdrawal Penalties: Understand the fees and interest loss if you take money out before maturity.
• Compounding Frequency: Check how often interest is compounded (daily, monthly, annually) - more frequent compounding can slightly increase returns.
• Minimum Deposit Requirements: Ensure you meet the minimum opening balance, which can vary by institution.
• FDIC or NCUA Insurance: Confirm that your CD is insured up to $250,000 per depositor, per institution.
• Rate Lock: Rates are fixed for the term, so choose a rate you’re comfortable with for the full duration.
• Laddering Strategy: Consider splitting funds into multiple CDs with different maturity dates for flexibility and steady access to cash.

Which CD term length is right for you?

The right CD term length depends on your financial goals, when you’ll need the money, and your comfort level with locking in your funds:

• Short-Term (3–12 months): Best if you may need the money soon or want flexibility to reinvest at potentially higher future rates.
• Medium-Term (12–36 months): Balances better rates with moderate access restrictions - good for savings goals within a few years.
• Long-Term (36+ months): Often offers the highest rates but requires keeping your funds untouched for the full period.

Things to consider:

• Early Withdrawal Penalties: Accessing funds before maturity usually means losing some or all interest earned.
• Interest Rate Trends: If rates are rising, shorter terms let you reinvest sooner at higher rates. If rates are stable or falling, locking in a longer term can preserve a good rate.
• Savings Goals: Match the CD’s maturity date with when you’ll need the funds. For example, a 24-month CD for a planned expense in two years.

Ask Yourself:

1. When will I need this money?
   1. Within a year → short-term CD
   2. 1–3 years → medium-term CD
   3. 3+ years → long-term CD
2. What are interest rates doing?
   1. Rising → consider shorter terms to reinvest later
   2. Stable or falling → lock in a longer term to secure today’s rate
3. How important is flexibility?
   1. Need regular access → shorter term or CD ladder
   2. Comfortable locking funds away → longer term for higher returns

Tip: You can use a CD ladder (opening multiple CDs with different maturity dates) to get higher rates on some funds while keeping other funds accessible sooner.

How much compound interest will you earn on a CD?

If you invest $10,000 in a CD with a 4.00% APY for 12 months, compounded monthly, you’d earn about $407 in compound interest. This would make your total maturity value about $10,407.

Tip: Even a small difference in APY can add up over time, so it’s worth comparing rates before you commit.

Related savings tools

Want to explore more ways to grow your savings? Try our Savings Calculator to plan for a future purchase or our Closing Cost Estimator to prepare for a home purchase.