How much does a $1,000 CD earn at 4% for 5 years?

$1,221.00

A $1,000 certificate of deposit at 4% for 5 years matures at $1,221.00 — $221.00 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 × 5) = $1,221.00

APY 4.07%. Interest earned: $221.00.

Open the full CD calculator to use your own figures.

Similar questions

Questions

How much does a $1,000 CD earn at 4% for 5 years?
A $1,000 certificate of deposit at 4% for 5 years matures at $1,221.00 — $221.00 of interest. $1,000 × (1 + 4% ÷ 12)^(12 × 5) = $1,221.00.
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.