Work out certificate of deposit yield instantly with clear inputs, formula shown and shareable results.
A certificate of deposit pays interest calculated on an actual-over-365 basis at maturity, unlike commercial paper which is issued at a discount. The effective annual yield annualises the whole return including the compounding effect.
Certificate of deposit
Interest = principal × rate × days/365; effective yield = (maturity/principal)^(365/days) - 1
Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.
Certificates are negotiable and can be sold before maturity, whereas a fixed deposit must be broken with a penalty.
Some are. Discounted certificates behave like commercial paper, so check the convention before comparing yields.