Legacy Investing CalculatorsShow

Fixed-term deposit growth

What will a fixed deposit return by maturity?

Your numbers

$
%
mo

1 annual, 4 quarterly, 12 monthly

Maturity value

$26,175

Interest earned$1,175

Tip. Check whether your product compounds or simply pays interest at maturity. They are not the same.

Assumptions

  • A = P (1 + r/n)^(n×t) with t in years.
  • No early withdrawal penalties modeled.

Explore the numbers

Examples and charts

Start with a scenario, then read the response curve to see which input actually moves the answer.

Example 1

One-year CD

The standard shape, compounded monthly.

Maturity value

$26,175

Example 2

Three-year CD

A longer lock at a slightly lower rate, which is common when rates are expected to fall.

Maturity value

$28,351

Example 3

Annual compounding

The same rate and term compounded once a year instead of monthly, to see how little the frequency matters.

Maturity value

$28,611

Sweeps annual rate from half to one and a half times your value, holding everything else fixed.

Response curve

How annual rate moves the result

Maturity value

$26,175

$26k$27k3.0%4.0%5.0%6.0%
Chart axis: Annual rateNow 4.6% → $26k

What this calculates

Projects a CD or term deposit to maturity at a chosen compounding frequency, so you can see what the stated rate is actually worth over the term.

How to use it

  1. Start with deposit amount and work down the form, or load an example to begin from a realistic case.
  2. Read the headline result alongside the supporting rows, which show the intermediate figures behind it.
  3. Check the assumptions. They decide what the number includes and, more importantly, what it leaves out.
  4. Sweep annual rate on the response curve to see how much it actually moves the answer.
  5. Run a cautious case as well as an optimistic one before using the estimate in a decision.

Common mistakes

  • Comparing a CD rate to a bond yield without matching the terms.
  • Locking money you are likely to need before maturity.
  • Missing the maturity date and letting it roll into a much worse rate automatically.

Formula

A = P(1 + r/n)^(n·t), with t in years and n compounding periods a year

Inputs

  • Deposit amount
  • Annual rate (%)
  • Term length (mo)
  • Compounds per year. 1 annual, 4 quarterly, 12 monthly

FAQ

What if I withdraw early?

Penalties are not modelled here, and they are usually quoted as a number of months of interest. On a short CD an early withdrawal can cost more than the interest you earned.

How much does compounding frequency actually matter?

Much less than the rate. At 4.6%, monthly compounding beats annual by roughly a tenth of a percentage point. Compare on APY, which already folds frequency in.

Should I ladder several CDs instead of buying one?

A ladder gives you access to part of the money each year without penalty, at the cost of some yield on the shorter rungs. It is the usual answer when you are unsure how long you can lock the cash away.

Are these numbers financial advice?

No. They are educational estimates based on the inputs and assumptions on this page. Confirm important decisions with a qualified professional and your own documents.

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