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. Most CDs in May 2026 pay between 4.50% and 5.25% APY for 1- to 5-year terms.
Last reviewed: May 14, 2026.
Final balance
$5,255.81
Interest earned
$255.81
Effective APY
5.116%
CD vs HYSA: which is better?
| CD | HYSA | |
|---|---|---|
| Access to funds | Locked until maturity | Withdraw anytime |
| Rate | Fixed | Variable |
| Best for | Lump sum you won't touch | Emergency fund, ongoing savings |
| Penalty | Early withdrawal fee | None |
| Typical APY | 4.50% to 5.50% | 4.25% to 5.25% |
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 lets you withdraw any time. 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.