This tool calculates the maturity value of your certificate of deposit (CD). CDs are time deposits that are guaranteed for up to $250,000 per depositor per institution by the U.S. Federal Deposit Insurance Corporation (FDIC). Because CDs are federally insured, they are considered relatively conservative investments. As a result, they pay a lower interest rate -- stated as an annual percentage yield (APY) -- than non-insured investments such as stocks and bonds.
Factors that can increase a CD's yield include a higher interest rate earned on the deposit, more frequency compounding, and a longer deposit term.