If you’re concerned that rates will fall in the future, a five-year CD can help you guarantee a fixed yield for several years ...

Don't deposit $20,000 into either account type before calculating the interest-earning potential each offers now.

Try It: Use This Example To Calculate CD Interest Let’s say you plan to deposit $5,000 in a 1-year CD. After doing your research, you find a high-yield CD offering 4.00% APY.

Real World Example of a Zero-Coupon CD To illustrate, consider the case of a 5-year zero-coupon CD with a face value of $5,000 being sold for $4,000. To purchase the CD, the investor only needs to ...

For example, to create a long-term CD ladder, you divide your money into five parts. Let’s say you have $10,000. You put $2,000 each into a one-year, two-year, three-year, four-year and five ...