Do CDs compound daily or monthly?

Most US banks compound CD interest daily on a 365-day basis, then credit it to the account monthly or quarterly. Credit unions more often compound quarterly. The rate sheet or the Truth in Savings disclosure states both the compounding method and the crediting schedule, and Regulation DD requires the bank to disclose them.

How much more does daily compounding actually earn?

On a $25,000 CD at 4.25% for one year, daily compounding pays $22.84 more than annual compounding and $1.89 more than monthly. Over five years the daily-versus-annual gap grows to $135.11. It is real money but it is smaller than the gap between two banks' rates almost every time.

Does compounding frequency change my APY?

It changes the APY implied by a nominal rate, yes. A 4.25% APR compounds to 4.3413% APY daily, 4.3338% monthly and 4.3182% quarterly. If the bank quoted you an APY to begin with, the frequency has already been applied and switching it here will not change your payout.

Is CD interest simple or compound?

Standard CDs compound. The exception is a CD set to pay interest out to a linked account each month — once the interest leaves the CD it stops earning, so the account behaves like simple interest. Savers who want monthly income choose this deliberately; anyone maximising the maturity value should leave interest in the CD.

What is the formula for compound interest on a CD?

A = P(1 + r/n)^(nt). P is the deposit, r the nominal annual rate as a decimal, n the number of compounding periods per year and t the term in years. Subtracting P from A gives the interest earned. Every figure on this page comes from that one expression.

CD Compound Interest Calculator

See what daily, monthly and quarterly compounding are worth.

See what daily, monthly and quarterly compounding are actually worth on the same CD — usually less than the rate difference between two banks.

Na koniec okresu: 30 783,67 USD
Odsetki: 5783,67 USD

Twoja lokata

Kwota wpłaty

Oprocentowanie

Oprocentowanie podane jako

Okres

mies.

5 lata

Typowe okresy

Częstotliwość kapitalizacji

Wartość na koniec okresu: 30 783,67 USD
Łączne odsetki: 5783,67 USD
Efektywne APY: 4,25%

25 000,00 USD na lokacie 5 lata przy 4,25% APY, z kapitalizacją dzienna, urośnie do 30 783,67 USD — to 5783,67 USD odsetek, średnio 96,39 USD miesięcznie.

Saldo w trakcie okresu

KapitałOdsetki

Zobacz dane w tabeli

Saldo w trakcie okresu
Miesiąc	Kapitał	Odsetki	Saldo
Przy otwarciu	25 000,00 USD	0,00 USD	25 000,00 USD
1y	25 000,00 USD	1062,50 USD	26 062,50 USD
2y	25 000,00 USD	2170,16 USD	27 170,16 USD
3y	25 000,00 USD	3324,89 USD	28 324,89 USD
4y	25 000,00 USD	4528,70 USD	29 528,70 USD
5y	25 000,00 USD	5783,67 USD	30 783,67 USD

Calculated in your browser using A = P(1 + r/n)^nt. Nothing is sent to a server. Figures are before tax; confirm exact terms with your bank.

Za darmo — bez rejestracji
Aktualizuje się na bieżąco
Działa w Twojej przeglądarce

Wzory i treści ostatnio zweryfikowane 21 lipca 2026. Oprocentowanie w bankach zmienia się często — aktualne stawki potwierdź bezpośrednio w swojej instytucji.

Krótka odpowiedź

How does compound interest work on a CD?

CD compound interest is calculated with A = P(1 + r/n)^(nt), where n is how many times a year the bank credits interest — 365 for daily, 12 for monthly, 4 for quarterly. Each credit joins the principal and earns interest for the rest of the term, which is why the same nominal rate produces a different maturity value at each frequency. The gap is real but small, and most savers overweight it. A $25,000 CD at 4.25% for one year matures at $26,085.34 compounded daily against $26,062.50 compounded annually — $22.84 apart. Stretch that to five years and the gap widens to $135.11, because the effect is cumulative. What matters far more is which number the bank quoted you. If the 4.25% is an APY it already contains the compounding, and switching the frequency changes nothing about your payout; if it is a nominal APR, the frequency is what turns it into the yield you actually receive.

Wzór i metoda

Jak to jest obliczane

A = P(1 + r/n)^(nt)

Compounding frequency enters only through n. Everything else is the standard CD growth formula.

A: Maturity value after compounding
P: Principal — your opening deposit
r: Nominal annual rate as a decimal (4.25% → 0.0425)
n: Credits per year — daily 365, monthly 12, quarterly 4, annual 1
t: Term in years (60 months → 5)

Krok po kroku

1
Divide the nominal rate by n to get the rate applied at each credit.
2
Add 1. This is the growth factor for a single compounding period.
3
Raise it to the power n × t — the number of credits across the whole term.
4
Multiply by the principal for the maturity value.
5
To isolate the compounding effect, run the same figures at n = 1 and subtract.

Przewodnik

Jak korzystać z tego kalkulatora

Cztery pola, wynik na żywo. Niczego nie trzeba wysyłać ani zakładać konta.

1
Enter the deposit and the nominal rate
Use the bank's rate sheet. Set the toggle to APR if the figure is a nominal rate — compounding frequency only changes the answer when the input is an APR.
2
Set the term
Compounding is cumulative, so the frequency matters more the longer the term. On anything under a year the difference is usually pennies on a five-figure deposit.
3
Switch the compounding control
Move between daily, monthly and quarterly and watch the maturity value and effective APY update. That movement is the entire value of the frequency.
4
Compare against the rate gap
Note the dollar difference, then compare it to what a 0.10% higher rate at another bank would pay. The rate almost always wins.

Przykłady

Przykłady z obliczeniami

Prawdziwe liczby, przeliczone do samego końca — możesz sprawdzić kalkulator na własnych danych.

The same $25,000 one-year CD at 4.25% nominal, credited at three different frequencies

Deposit: $25,000
Nominal rate (APR): 4.25%
Term: 12 months

Daily (n = 365): $26,085.34
Monthly (n = 12): $26,083.44
Quarterly (n = 4): $26,079.55
Annually (n = 1): $26,062.50

Daily beats annual by $22.84 on a $25,000 deposit — about 0.09% of the balance. Daily beats monthly by $1.89. A bank offering 4.35% compounded annually pays more than one offering 4.25% compounded daily, which is why the rate is the first thing to compare and the frequency is the second.

The same comparison stretched to a five-year term

Deposit: $25,000
Nominal rate (APR): 4.25%
Term: 60 months

Daily (n = 365): $30,918.77
Annually (n = 1): $30,783.67
Difference: $135.11

Five times the term produces roughly six times the compounding gap, because each year's extra interest compounds again in the years that follow. It is still only 0.44% of the closing balance — meaningful on a long term, rarely decisive.

Metodologia

Dokładność i założenia

Każdy kalkulator przyjmuje jakieś założenia. Oto nasze, opisane wprost, żebyś dokładnie wiedział, co liczby uwzględniają, a czego nie.

The rate is fixed for the whole term and every credit is retained in the CD rather than paid out.
Daily compounding uses a 365-day year, the convention used by most US banks. A handful use 360, which lowers the result very slightly.
Interest is credited on a regular schedule with no partial first period. Real CDs open mid-month and the first credit is prorated.
Figures are gross of tax. CD interest is taxable in the year it is credited, even if you cannot withdraw it until maturity.

Konwencje są zgodne z Regulation DD (12 CFR 1030), które reguluje sposób podawania APY dla rachunków depozytowych przez instytucje w USA. Depozyty w instytucjach objętych ubezpieczeniem są chronione przez FDIC do kwoty $250,000 na deponenta, na bank i na kategorię własności rachunku.

Źródła pierwotne

Skąd biorą się te zasady

Konwencje, których trzyma się ten kalkulator, ustalają regulatorzy, a nie my. Każda z nich odsyła do instytucji, która ją wydała, żebyś mógł to sprawdzić, a nie wierzyć nam na słowo.

Szczegóły

Najważniejsze szczegóły i zasady

Fakty w pigułce, warte poznania, zanim otworzysz lub odnowisz CD.

Compounding frequency and interest payout frequency are different settings. A CD can compound daily but pay out monthly, in which case the paid interest leaves the account and stops compounding — that is a simple-interest CD in practice, and its maturity value is lower.
If the bank quotes an APY, the compounding is already baked in. Regulation DD requires the APY to reflect the institution's own compounding method, which is exactly why the APY exists: it makes two differently-compounded CDs directly comparable.
Continuous compounding, A = Pe^(rt), is the mathematical ceiling. At 4.25% for one year it returns $26,085.40 — six cents above daily on $25,000. There is nothing left for a bank to win by compounding more often than daily.
The compounding gap scales with the balance, not with the rate. On $250,000 rather than $25,000, the five-year daily-versus-annual difference becomes $1,351.05 — the same 0.44%, but now large enough to be worth asking about.
Some credit unions compound quarterly and describe the payout as a dividend rather than interest. The arithmetic is identical; only the terminology and the insuring agency (NCUA instead of FDIC) change.

Jak to się łączy

Powiązane pojęcia i kalkulatory

CD Compound Interest Calculator działa razem z tymi powiązanymi narzędziami. Każde omawia w całości jeden element tematu CD.

Zastosowania

Dla kogo jest ten kalkulator

Savers comparing two near-identical offers
When two banks are 0.05% apart, the compounding schedule is the tiebreaker people reach for. Run both here first — the frequency usually moves the answer less than the rate gap does, which settles it quickly.
Anyone handed a nominal rate
Brokered CDs and credit-union share certificates are often quoted as a nominal rate with a stated compounding schedule rather than an APY. This page converts that pair into the maturity value the quote actually implies.
Long-term and retirement savers
On a five- or ten-year CD the compounding effect stops being rounding. If the deposit is large and the term long, the frequency is worth confirming in writing before you sign.

Powiązane narzędzia

Wszystkie kalkulatory CD

Dziewięć wyspecjalizowanych narzędzi obejmujących całą tematykę lokat terminowych.

FAQ