How much does a $1,000 CD earn at 4% for 1 year?
$1,040.74
A $1,000 certificate of deposit at 4% for 1 year matures at $1,040.74 — $40.74 of interest.
How it is worked out
A CD compounds at a fixed rate for a fixed term. Monthly compounding is the usual case, and the APY is what that compounding is worth over a year — always slightly above the stated rate.
$1,000 × (1 + 4% ÷ 12)^(12 × 1) = $1,040.74
APY 4.07%. Interest earned: $40.74.
Open the full CD calculator to use your own figures.
Similar questions
- $1,000 · 4% · 3 years = $1,127.27
- $1,000 · 4% · 5 years = $1,221.00
- $1,000 · 4.5% · 1 year = $1,045.94
- $1,000 · 3% · 5 years = $1,161.62
- $1,000 · 4.5% · 3 years = $1,144.25
- $1,000 · 3% · 3 years = $1,094.05
Questions
- How much does a $1,000 CD earn at 4% for 1 year?
- A $1,000 certificate of deposit at 4% for 1 year matures at $1,040.74 — $40.74 of interest. $1,000 × (1 + 4% ÷ 12)^(12 × 1) = $1,040.74.
- How is this worked out?
- A CD compounds at a fixed rate for a fixed term. Monthly compounding is the usual case, and the APY is what that compounding is worth over a year — always slightly above the stated rate.
- Can I use my own figures?
- Yes — the CD calculator takes any values and shows the full result.