CD Calculator
Calculate how much your Certificate of Deposit, Fixed-Rate Bond, Term Deposit, or GIC will be worth at maturity. Compare the best rates and deposit insurance limits across the US, UK, Australia, and Canada.
$10,000 at 5% APY for 12 months = $10,512 (monthly compounding). Best 2024 rates: US CDs 5.0–5.5%, UK fixed bonds 5.0–5.5%, AU term deposits 4.5–5.3%, CA GICs 4.5–5.2%. APY > APR — always compare APY when shopping rates across banks.
Fixed-Term Savings Comparison by Country (2024)
| Country / Product | Best Rate (12-mo) | Insurance Limit | Tax Wrapper |
|---|---|---|---|
| 🇺🇸 US — CD | 5.0–5.5% APY | $250,000 (FDIC) | None (taxable) / IRA CD |
| 🇬🇧 UK — Fixed Bond | 5.0–5.5% AER | £85,000 (FSCS) | Cash ISA (up to £20K/yr tax-free) |
| 🇦🇺 AU — Term Deposit | 4.5–5.3% pa | A$250,000 per bank | None standard |
| 🇨🇦 CA — GIC | 4.5–5.2% pa | CA$100,000 (CDIC) | TFSA (up to $7K/yr tax-free) |
| 🇩🇪 DE — Festgeld | 3.5–4.5% pa | €100,000 (EU DGS) | None standard |
How to Calculate CD Maturity Value
The future value of a CD depends on how frequently interest is compounded. The formula is: FV = P × (1 + r/n)^(n×t), where P = principal, r = annual rate (as a decimal), n = compounding periods per year, and t = years. For $10,000 at 5% APY compounded monthly for 1 year: FV = $10,000 × (1 + 0.05/12)^12 = $10,511.62. If compounded daily (as many US online banks do): FV = $10,000 × (1 + 0.05/365)^365 = $10,512.67 — slightly more. This small difference grows substantially over longer periods.
APY vs APR: Why the Difference Matters
APY (Annual Percentage Yield) reflects the actual return including compounding; APR (Annual Percentage Rate) does not. When comparing CDs across different banks and countries, always use APY. A 5% APR compounded monthly equals 5.116% APY. Banks in the US are required by law (Truth in Savings Act) to advertise APY for deposit products, making comparison easy. UK banks use AER (Annual Equivalent Rate), which is the same concept as APY. Australia uses "effective annual rate" or pa. Always confirm you are comparing like-for-like when shopping internationally.
The CD Ladder Strategy
A CD ladder spreads deposits across multiple maturities — say, $10,000 each in 1-year, 2-year, 3-year, 4-year, and 5-year CDs. Each year, one CD matures and is reinvested at the current rate. This strategy avoids locking all your money at one rate, gives you liquidity every 12 months, and historically averages out to near the 5-year rate while keeping flexibility. In the UK, the equivalent is staggering fixed-rate bond terms. In Canada, GICs can be laddered similarly, though early redemption on GICs is typically not permitted without full penalty.
Early Withdrawal Penalties by Country
The biggest risk with CDs and term deposits is the early withdrawal penalty. US penalties are typically 90 days of interest for terms under 1 year, and 150–180 days for longer terms. UK fixed-rate bonds often prohibit early withdrawal entirely — your money is locked until maturity. Australian term deposits can be "broken" early but require notice (typically 31 days) and incur a penalty rate reduction of 1–3%. Canadian GICs are usually non-redeemable, meaning you cannot access funds early regardless of need. Always check the penalty terms before committing to a term deposit product.