Calculate Certificate of Deposit (CD) returns for Indian bank CDs.
| Principal Invested | — |
| Interest Earned | — |
| Effective Annual Yield | — |
A Certificate of Deposit (CD) is a negotiable, unsecured money-market instrument issued by a bank in India, in demat form, for a maturity of up to one year (RBI Master Directions). Like an FD, you deposit a lump sum at a fixed rate for a fixed term; unlike an FD, a CD is transferable.
Q: What is the difference between CD and savings account?
A: CDs/FDs offer higher interest rates than savings accounts but lock your money for a fixed period. Early withdrawal usually incurs a penalty.
Q: What is effective annual yield?
A: Effective annual yield accounts for compounding frequency. A 7% rate compounded quarterly yields more than 7% annually.
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