Rate typeBanks advertise CDs by APY. Choose APR if you only know the nominal interest rate.
Common terms are 3, 6, 12, 18, 24, 36 and 60 months.
Listed in the account disclosure. Most banks compound CD interest daily or monthly.
Ending balance$10,450.00
Interest earned$450.00
APY4.5%
Interest rate (APR)4.4%
Term12 months (1 year)
Average interest per month$37.50

Ending balance = deposit × (1 + r/n)n × t = deposit × (1 + APY)t, with n = 365 compounding periods per year and t = term in years = 1. APY = (1 + r/n)n − 1 = (1 + 4.4020% ÷ 365)365 − 1 = 4.500%.

CD Calculator · free calculator by CalcWorthy