CD Calculator
A CD calculator shows what you earn when you lock money in a certificate of deposit. Enter your deposit, the bank's APY, and the term length. The tool returns your final balance and total interest. A CD usually pays a little more than an easy-access savings account, in exchange for locking the money up for a set term, most often between one and five years. Rates vary by bank and by term, so check the current figure at the bank before you commit.
Account details on this page were last checked on August 23, 2026. We do not publish a bank’s APY here, because savings rates change without notice and a stale number is worse than none. Use the link by each account to see the rate the bank is paying right now. National averages come from the FDIC National Rates and Rate Caps.
Final balance
$5,250.00
Interest earned
$250.00
APY
5.00%
CD vs HYSA: which is better?
| CD | HYSA | |
|---|---|---|
| Access to funds | Locked until maturity | No fixed term |
| Rate | Fixed | Variable |
| Best for | Lump sum you won't touch | Emergency fund, ongoing savings |
| Penalty | Early withdrawal fee | None |
| Rate behaviour | Fixed for the whole term | Variable, can change any time |
CDs work best when you have a lump sum you will not need for a set period. HYSAs are better for money you may need to access. Many people use both: a HYSA for the emergency fund and CDs for money set aside for a specific future goal.
The CD ladder strategy
A CD ladder spreads your money across CDs with different end dates. The idea: keep part of the money locked at a higher rate, and keep part of it freeing up each year. Example with $15,000:
| Rung | Amount | Term | Matures in |
|---|---|---|---|
| 1 | $5,000 | 1 year | Year 1 |
| 2 | $5,000 | 2 years | Year 2 |
| 3 | $5,000 | 3 years | Year 3 |
Each year, one CD matures. You can spend that money or roll it into a new 3-year CD at the current rate. The ladder protects you from rate changes and keeps part of the money accessible.
Frequently asked questions
What is a certificate of deposit (CD)?
A CD is a savings product that locks your money for a set term at a fixed APY. Common terms are 6 months, 1 year, 3 years, and 5 years. You earn the agreed rate until the CD matures.
How is a CD different from a HYSA?
A CD has a fixed rate and a locked term. A HYSA has a variable rate and no fixed term, subject to your bank's transfer and withdrawal rules. Pick a CD if you want to lock in today's rate. Pick a HYSA if you might need the cash.
What is the early withdrawal penalty on a CD?
Most banks charge 3 to 12 months of interest if you pull out early. The exact fee is in your CD agreement. A 5-year CD often charges 6 months of interest as the penalty.
What is a CD ladder?
A CD ladder splits your money across CDs with staggered maturity dates. For example: $5,000 in a 1-year, $5,000 in a 2-year, $5,000 in a 3-year. Each year one CD matures so you have access to part of the money without breaking the others.
Are CDs FDIC insured?
Yes. CDs at FDIC banks are insured up to $250,000 per depositor, per bank. Credit union CDs are insured by the NCUA up to the same amount. Source: FDIC.gov.
Are CD earnings taxable?
Yes. Interest on a CD counts as ordinary income on your federal return. The bank sends you a 1099-INT each January. For long-term CDs, you owe tax each year on the interest credited, not just at maturity. Source: IRS Publication 550.
What to do next
Want to know when the savings landscape changes?
We will email you when the Federal Reserve moves its target rate, when the FDIC publishes new national averages, and when we publish a newly verified comparison. We do not track individual banks’ APYs and we will not pretend to, so this is an infrequent email about things that genuinely change the picture.
Email only. We never send your calculator figures anywhere, they are worked out on your device. Every email has an unsubscribe link, and you can reply to any of them to come off the list.