Calculate Certificate of Deposit returns. Similar to Fixed Deposits (FD) used in India.
| Principal Invested | — |
| Interest Earned | — |
| Effective Annual Yield | — |
A Certificate of Deposit (CD) is equivalent to a Fixed Deposit (FD) in India. You deposit a lump sum for a fixed term at a guaranteed interest rate. The longer the term and higher the rate, the more you earn.
Q: What is the difference between CD and savings account?
A: CDs/FDs offer higher interest rates than savings accounts but lock your money for a fixed period. Early withdrawal usually incurs a penalty.
Q: What is effective annual yield?
A: Effective annual yield accounts for compounding frequency. A 7% rate compounded quarterly yields more than 7% annually.
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