The rate on a Certificate of Deposit (CD) refers to the interest rate you will earn on the funds in your CD account. The rate is usually expressed as a percentage APY, or Annual Percentage Yield.
You can always find current CD interest rates for your banking region on our Certificate of Deposit (CD) page.
Your CD will begin earning interest on the business day you make your deposit, or when your deposit is received via mail or electronic transfer.
Interest may be paid on a monthly, quarterly, semi-annual, or annual basis, or at maturity depending on the terms and conditions of your CD. At BBVA, interest payments will be made at maturity for CDs opened online.
Interest on a CD is calculated by taking the amount of the CD and multiplying it by the interest rate. Because interest on CDs compound, any interest earned will be added to your account balance. Soon, your CD will begin earning interest on interest.
How much compounded interest your CD earns depends on the frequency at which interest compounds, such as daily, weekly, or monthly. Factor in the term of the loan and you will have what is called Annual Percentage Yield, or APY.
There are several factors that determine how much you can earn with a CD:
Because these factors do not change during your CD term, you should be able to calculate how much you will earn when you open your account.
At the end of your CD’s term, also known as maturity date, your CD will be worth the original deposited balance plus all interest earned during the term of the CD.
BBVA gives you several options for checking your account balances:
You will be sent written notice at least 10 calendar days before your CD matures. Most CDs automatically renew, which means they roll over into a new term automatically. You will have 10 calendar days after maturity to withdraw funds without penalty.
At maturity, your CD renews automatically, unless you receive written notice to the contrary.