Certificate of Deposit (CD) Calculator
From principal, annual rate, term and compounding frequency, compute the CD maturity balance and interest earned.
Input Data
Results
At a glance:CD / Time Deposit locks cash for a fixed term for a higher rate than a savings account. final balance = principal x (1 + r/m)^(m·t), r = annual rate, m = compounding per year, t = years; interest = final balance - principal. Example: HK$100,000 at 4% monthly, 1y → ≈ HK$104,074, interest ≈ HK$4,074. WARNING: Enter the nominal annual rate, not APY (APY double-counts compounding). Early withdrawal usually forfeits interest and may incur a penalty. For HK personal depositors, deposit interest is generally not subject to HK profits/salaries tax, and deposits are protected by the Deposit Protection Scheme (DPS) up to the per-depositor-per-bank limit. Education, not advice.
Formula
Final balance FB = ID × (1 + r/m)^(m·t), r = annual rate, m = compounding/year, t = years.
Interest = FB − ID.
$$$FB = ID\\left(1+\\dfrac{r}{m}\\right)^{mt}$$$$$$Interest = FB - ID$$$$$(10 4%1 )$100000\\times\\left(1+\\frac{0.04}{12}\\right)^{12}\\approx104074$$$How to Use
- Enter the initial deposit.
- Enter the bank's annual rate and the term.
- Pick the compounding frequency to see the maturity balance and interest.
FAQ
What is the difference between a CD and a savings account?
A time deposit locks the money for a fixed term at a usually higher rate; early withdrawal typically forfeits part or all of the interest and may incur a penalty. Longer terms and larger amounts usually get better rates. It is the trade of liquidity for yield.
Should I enter the annual rate or the APY?
Enter the bank's quoted nominal annual rate and choose the compounding frequency yourself. Do NOT enter the APY (which already includes compounding), or you will double-count and overstate the return.
Does compounding frequency affect the return?
Yes. At the same nominal rate, more frequent compounding (e.g. daily) gives a slightly higher maturity balance than annual compounding, because interest is added to principal more often.
Can I withdraw before maturity, and what happens?
Usually yes, but at a cost — typically you lose part or all of the interest (perhaps only earning a low savings rate) and may pay an early-withdrawal fee; some products do not allow partial withdrawal. Tips: only lock idle funds you will not need; read the early-withdrawal terms; consider laddering (split into several terms) so you only break one if cash is needed; note some banks offer slightly more flexible products at a lower rate. This calculator shows the hold-to-maturity return; actual early-withdrawal results follow the bank's terms.
Is Hong Kong deposit interest taxable, and is it protected?
Two common questions. Tax: Hong Kong's regime is simple — interest earned by an individual from a Hong Kong bank deposit is generally NOT subject to profits tax or salaries tax (Hong Kong has no general interest tax or capital gains tax); this is for ordinary individual depositors, special circumstances may differ — consult a tax professional or the IRD. Protection: Hong Kong has the Deposit Protection Scheme (DPS) administered by the Deposit Protection Board, compensating eligible deposits (including time deposits) if a member bank fails, up to a per-depositor-per-bank limit (the limit is reviewed from time to time — check the official figure). Practical tips: confirm your bank is a DPS member; if deposits are large, spread across banks to stay within each limit; check the latest scope and limit. ⚠️ Rules change; this is general reference only — follow the IRD and DPS official publications.
Related Tools
References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.