Follow the steps below to use the Bankrate CD calculator to see how much interest you’ll earn over time: Determine how much money you’d like to put in a CD. CDs generally have early withdrawal penalties if you withdraw money before the term ends. So choose your term carefully. Deposit the amount you wish to sock away as your initial deposit.
How does Bankrate monitor CD rates?
Bankrate monitors the national average rates on various CD terms, including: In June 2023, Bankrate updated its methodology that determines the national average CD rates. More than 500 banks and credit unions are surveyed weekly to generate the national averages.
How are CD rates determined?
CD rates are determined by several factors. The decisions made by the Federal Reserve on the federal funds rate will likely influence CD rates. Competition among banks and credit unions will also influence the payout on their CDs, as well as whether or not the financial institution needs deposits.
