See exactly what your CD will be worth at maturity. Compare compounding frequencies and watch your interest grow term by term.
Enter your deposit, term, and APY — we’ll show you the maturity value and total interest.
Estimates only. Actual CD terms, APY, and maturity value depend on the specific product and institution. RMO Bank CDs are FDIC-insured up to applicable limits. Early-withdrawal penalty applies if you withdraw before the maturity date. Comparison to 0.5% savings is illustrative; current savings APYs vary by bank and balance.
CDs grow using compound interest — you earn interest on your interest.
Final balance = P × (1 + APY)t
Where P is your initial deposit, APY is the annual percentage yield (which already accounts for compounding), and t is the term in years.
When the input is APR, the formula is P × (1 + APR/n)n·t, where n is the compounding frequency per year (365 for daily, 12 for monthly, etc.).
The longer you compound and the more frequently it compounds, the more your interest grows on itself. APY is the bank’s honest answer to "what will I really earn in a year?" — it’s the number to compare across products.
APY (Annual Percentage Yield) reflects what you actually earn including compounding. APR (Annual Percentage Rate) is the simple stated rate without compounding. Banks advertise CDs by APY because that’s the number that translates to real earnings. If you see both numbers, APY will be slightly higher when interest compounds more than once a year. This calculator works with APY directly.
Interest earned on a CD is taxed as ordinary income at your federal marginal rate, plus state income tax if applicable. The bank reports interest annually on Form 1099-INT, even on multi-year CDs (you owe tax on interest credited each year, not just at maturity). If the CD is held in a tax-advantaged account like an IRA, taxes are deferred.
Most CDs charge an early-withdrawal penalty equal to a number of months of interest — commonly 3–6 months for terms under 2 years and 6–12 months for longer terms. The penalty is taken out of your earned interest first, but if interest hasn’t accrued enough yet, it can reduce your principal. Always read the CD’s specific early-withdrawal terms before locking funds.
Yes — CDs at FDIC-insured banks are covered up to $250,000 per depositor, per insured bank, per ownership category. RMO Bank CDs are FDIC-insured. If you have more than $250,000 to deposit, you can spread it across multiple banks or use multiple ownership categories (individual, joint, IRA) at the same bank to extend coverage.
CD laddering means splitting your deposit across multiple CDs with staggered maturities (e.g., 1-year, 2-year, 3-year, 4-year). Each year a CD matures, giving you regular liquidity. Meanwhile, the longer-term CDs lock in higher rates. Laddering generally beats putting everything in either short-term or long-term CDs alone. Read more in our guide to the best business CDs and money market accounts.
