How Much Interest Can I Earn from a CD?
Are you curious about how much interest you may earn on a Certificate of Deposit or CD? Investing money in a CD can be a smart way to make a low-risk investment with guaranteed returns. However, the actual interest you will earn depends on which CD you choose and the current market rate.
Finding the Best CD for Your Investment
You will find that CD rates are different, even within the same bank or credit union. All CDs follow a similar rate pattern: the longer the term of the CD, the higher the rate of return and the more you can earn. According to average CD rates, a 5-year CD has a rate of 0.32% versus a much shorter 3-month CD, which typically offers a 0.07% interest rate. You should always shop around to find the best option for your finances. Using the calculator below, you can review our CD rates and terms and compare them with other options review our CD rates and terms and compare them with other options using the calculator below.1
Additional CD Considerations
- Most CDs have a fixed rate that is locked in for the duration of the agreement.
- You will have to pay a substantial fee to withdraw the money early.
- The longer the duration of the CD, the higher the return on your investment.
Certificate of Deposit Calculator
Ready to get started? Calculate your CD investment return with the TDECU Certificate of Deposit calculator.
1Our financial calculators are provided as a free service to our Members. The information these calculators supply is from various sources based on calculations we believe to be reliable (but are not guaranteed, explicit, or implied) regarding their accuracy or applicability to your specific circumstances. All examples are hypothetical and illustrative and do not intend to provide investment advice. TDECU does not accept any liability for loss or damage whatsoever, which may be attributable to the reliance on and use of the calculators. Use of any calculator constitutes acceptance of the terms of this agreement. TDECU recommends finding a qualified professional for advice about your personal finance issues.
Please note: TDECU certificate of deposit interest compounds monthly.