🏦 Certificate of Deposit
CD Calculator — Certificate of Deposit Returns
Calculate your CD maturity value, total interest, APY, and after-tax return. Compare terms, build a CD ladder, and calculate early withdrawal penalties.
✅ Maturity Value & APY
💰 After-Tax Return
⚠️ Early Withdrawal Penalty
🪜 CD Ladder Builder
CD Calculator
Certificate of Deposit — Maturity & Returns
CD Details
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Tax & Inflation (Optional)
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Early Withdrawal
How CDs Work
A Certificate of Deposit (CD) is a fixed-term, fixed-rate savings deposit. You agree to leave money deposited for the term in exchange for a guaranteed interest rate — typically higher than a regular savings account. CDs are FDIC-insured up to $250,000.
4.5–5.5%
Top CD Rates 2026
$250K
FDIC Insured
Daily
Best Compounding
0 days
No-Penalty CDs
$0
Initial Deposit
$0
Total Interest
$0
Maturity Value
Maturity Breakdown
Initial Deposit$0
Interest Earned$0
⚠️ Early Withdrawal (if you withdraw after 6 months)
$0
Penalty Amount
$0
Net Received
📊 CD Term Comparison
Same deposit & rate — different terms (your term highlighted)
| Term | Maturity Value | Interest Earned | APY |
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📋 Period-by-Period Schedule
| Period | Opening Balance | Interest | Closing Balance | Cumulative Interest |
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💡 CD Tips
🏦Online banks typically pay 5–10× more than traditional banks — always compare APYs
🪜CD laddering lets you earn higher rates while keeping regular access to funds
📅Note the grace period (usually 7–10 days after maturity) to roll over or withdraw without penalty
🏛️Hold CDs in a Roth IRA or traditional IRA to defer or eliminate taxes on interest
💰Jumbo CDs ($100K+) often earn slightly higher rates than standard CDs at the same institution
⚠️Always confirm FDIC coverage — keep individual bank deposits under $250,000 per institution
🪜 CD Ladder Builder
Split your total savings across multiple CD terms for regular liquidity and higher average rates. Enter total amount and common rate, then build your ladder.
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| CD Rung | Amount | Term | Rate | Matures | Maturity Value |
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Best CD Rates in 2026
| CD Term | Top APY 2026 | Typical Big Bank APY | $10,000 Interest (at top rate) |
|---|---|---|---|
| 3 Months | 4.5–5.0% | 0.5–1.0% | ~$111–$123 |
| 6 Months | 4.8–5.3% | 0.5–1.5% | ~$237–$261 |
| 1 Year | 4.8–5.5% | 0.5–2.0% | ~$480–$550 |
| 18 Months | 4.5–5.2% | 0.5–1.5% | ~$673–$779 |
| 2 Years | 4.5–5.0% | 0.5–1.5% | ~$919–$1,025 |
| 3 Years | 4.3–4.8% | 0.5–1.5% | ~$1,348–$1,521 |
| 5 Years | 4.0–4.6% | 0.5–1.5% | ~$2,166–$2,517 |
How to Build a CD Ladder
A CD ladder splits your total deposit across multiple CDs with staggered maturities. When the shortest CD matures, you reinvest at the longest term. This strategy provides regular liquidity while capturing higher long-term rates.
Example 5-rung ladder with $25,000:
| Rung | Amount | Term | Rate | Interest |
|---|---|---|---|---|
| Rung 1 | $5,000 | 1 year | 5.0% | $250 |
| Rung 2 | $5,000 | 2 years | 5.0% | $513 |
| Rung 3 | $5,000 | 3 years | 4.8% | $750 |
| Rung 4 | $5,000 | 4 years | 4.5% | $939 |
| Rung 5 | $5,000 | 5 years | 4.3% | $1,143 |
Every year, one CD matures — giving you access to $5,000 plus interest. You can spend it, or roll it into a new 5-year CD at whatever rate is available then.
Frequently Asked Questions
CD interest uses the compound interest formula: A = P × (1 + r/n)^(n×t), where A = maturity value, P = initial deposit, r = annual rate (decimal), n = compounding periods per year, and t = years. Monthly compounding (n=12) is most common. The difference between daily and monthly compounding is very small — the key factor is the APY, which already accounts for compounding.
Penalties vary by bank and term. Common rules: 3-month CDs = 90 days' interest penalty; 6-12 month CDs = 180 days' interest; 2-year CDs = 180-365 days' interest; 5-year CDs = 365 days' interest. If you withdraw very early (before earning enough interest to cover the penalty), some banks can take a small portion of principal. Our calculator shows exactly what you'd receive if you withdraw early.
A no-penalty CD allows withdrawal after a short initial holding period (usually 6-7 days) without any penalty. The trade-off is a lower APY than traditional CDs — typically 0.5-1% less. No-penalty CDs are best when you want better rates than a savings account but may need access to funds. Select "No Penalty" in our calculator to see your net return without any penalty deduction.
Yes. CD interest is taxed as ordinary income in the year it is credited (or received). You'll get a 1099-INT form from your bank. If you're in the 22% tax bracket, your after-tax yield is roughly 22% less. To shield CD interest from taxes, hold CDs in a traditional IRA (tax-deferred) or Roth IRA (tax-free growth). Enter your marginal tax rate in our calculator to see your true after-tax return.
A CD ladder splits your deposit across CDs with different maturity dates (e.g., 1-, 2-, 3-, 4-, 5-year). When the 1-year CD matures, you reinvest at the 5-year rate. Each subsequent year, another CD matures, giving regular access to funds. Benefits: you earn higher long-term rates on most of your money while always having a CD maturing soon. Use our CD Ladder Builder above to build yours.