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CD calculator
Calculate your Certificate of Deposit's maturity value. Lock in a CD APY (4.25–5.25% in 2026), pick the term, and see your guaranteed payoff at the end.
CD rates and terms in 2026
| Term | Top APY range | Best use case |
|---|---|---|
| 3-month | 4.50–5.00% | Short-term parking |
| 6-month | 4.50–5.25% | Near-term goal funding |
| 12-month | 4.25–5.25% | Most popular; balanced |
| 24-month | 4.00–4.75% | Lock in if rates dropping |
| 5-year | 3.75–4.50% | Maximum rate-cut hedge |
Early withdrawal penalties
Break a CD early and the bank charges a penalty against earned interest:
- 3–12 month CDs: typically 3 months of interest
- 1–4 year CDs: typically 6 months of interest
- 5+ year CDs: typically 12 months of interest
On a $25,000 1-year CD at 5%, breaking it after 6 months means forfeiting about $312 of the $625 you earned — keeping ~$313. Match CD term to actual cash need.
CD laddering strategy
Split your CD money across 1, 2, 3, 4, and 5-year CDs. Each year one matures — reinvest it into a new 5-year CD at then-current rates. After 5 years you have a portfolio that's fully laddered: every year you get the highest (5-year) rate, plus liquidity every 12 months. Beats a single long CD for flexibility.
CD Calculator FAQ
How is CD interest calculated?
Most CDs compound daily and credit at maturity (or monthly on longer-term CDs). On a $25,000 CD at 5% APY for 12 months: $25,000 × 1.05 = $26,250. The 5% APY already accounts for daily compounding.
Is CD interest taxed?
Yes — taxed as ordinary income in the year it's earned (even if you don't withdraw it). The bank issues Form 1099-INT. Long-term CDs accruing interest annually trigger taxes each year, not just at maturity.
CD vs HYSA — which is better?
CD wins if rates are falling and you want to lock in. HYSA wins if you need liquidity or expect rates to rise. With both currently at 4.5–5%, lock half in a 12-month CD and keep half in HYSA for the best of both.
Is a CD FDIC-insured?
Yes — up to $250,000 per depositor per bank for FDIC-insured banks (NCUA for credit unions). Split larger amounts across multiple banks if needed; insurance coverage is per institution.
What's a no-penalty CD?
A CD that lets you withdraw early without forfeiting interest, typically after the first 6 days. APYs are slightly lower (~3.75–4.25%) but it removes the lockup risk. Marcus and Ally both offer them.
Should I buy a 5-year CD in 2026?
Depends on rate expectations. If you think rates will fall in 2026–2027 (Fed cuts), locking in 4.5% for 5 years is attractive. If rates stay flat or rise, you're stuck. A CD ladder hedges this directly.