A walkthrough, end to end.
- 1
Enter the deposit amount, APY (or APR), term in months/years, and compounding frequency.
- 2
The calculator returns total interest earned, the final balance at maturity, and the effective APY.
- 3
Compare across different terms to find the right CD ladder structure.
CD compound interest
Same compound interest formula every savings product uses. With m compounding periods per year and APY r over t years, the maturity value is principal × (1 + r/m)^(mt). Most CDs compound daily, but the APY shown is what matters for comparison.
What you can do with this.
1-year CD comparison
Online banks (Marcus, Ally, CIT) consistently offer 1-year CDs in the 4.5–5.5% APY range; brick-and-mortar banks offer 0.5–2% for the same product. Worth shopping — every 1% on $20K is $200/year.
5-year CD vs. 1-year ladder
5-year locks the rate but loses flexibility. A 1-year ladder (renew yearly) responds to rate changes but exposes you to falling rates. The right choice depends on your view of where rates head next.
CD ladder strategy
Split deposits across 1-, 2-, 3-, 4-, 5-year CDs. Each year one matures; reinvest in a new 5-year. Smooths interest-rate risk while keeping ~20% of money accessible annually.
No-penalty CDs
Some banks offer no-penalty CDs — withdraw any time without forfeiting interest. Slightly lower APY than standard CDs but valuable when rates are falling and you might want to lock in elsewhere.
Brokered CDs
Bought through a brokerage (Schwab, Fidelity), often with higher rates than retail CDs. Tradable on secondary market — useful for breaking out of a CD without early-withdrawal penalty.
Early withdrawal penalty
Typical penalty: 3–12 months of interest depending on term. Always check the fine print — penalty math sometimes makes early CDs worth breaking when rates spike.
FDIC insurance
CDs are FDIC insured up to $250K per depositor per bank per category. Above that, split across banks or use a CDARS network for larger deposits without losing insurance.
CD calculator 2026 — what's current
After the Fed's 2024-2025 rate cuts, CD rates have eased from peak ~5.5% to ~4–4.5% on 12-month terms. High-yield savings accounts (4–4.5% APY) now match short-term CDs without the lock-up — worth comparing.
Frequently asked.
APR is the simple annual rate. APY (Annual Percentage Yield) accounts for compounding within the year. Compare CDs on APY — that's the apples-to-apples number.
Yes — interest is taxed as ordinary income in the year earned (1099-INT). Short-term CDs (under 1 year) are entirely taxable in the year of maturity. Long CDs spread the tax across years.
Most CDs are 'closed' — fixed deposit at opening, no additions. 'Add-on' CDs allow contributions but have lower APYs. Check the product specifics before depositing.
No. Calculations run entirely in your browser.