Savings
CD Calculator
Estimate certificate of deposit growth using deposit amount, APY, and term. Adjust the assumptions to test different scenarios and use the result as a planning estimate, not a promise.
Savings
CD Calculator
Result
How to use this calculator
Enter the deposit amount, the annual percentage yield (APY — use this, not the stated interest rate, for an apples-to-apples comparison), and the CD term in months. The calculator shows the total interest earned and the final balance at maturity. If the CD compounds interest more frequently than annually, the APY already accounts for that — you don't need to adjust separately.
When comparing CDs across different banks, always compare APYs, not stated rates. Two CDs may have the same stated interest rate but different APYs depending on compounding frequency. Daily compounding produces a slightly higher effective yield than monthly, which beats quarterly. Most banks advertise APY precisely because it's the more favorable number — and because federal law requires it.
What your result means
The result shows your guaranteed payout at maturity — no market risk, no variability. That's the main appeal of a CD: a locked-in rate for a defined period, insured by the FDIC up to $250,000 per depositor per institution. The trade-off is liquidity. Once you open a CD, withdrawing before maturity typically triggers an early withdrawal penalty — often 3–6 months of interest for short-term CDs and 6–12 months for longer ones.
Run this calculator against a high-yield savings account to see the actual dollar difference. The flexibility of a savings account is worth something — if CD rates don't outpace a good HYSA by meaningful margin, the liquidity premium may favor the savings account, especially in a rate environment where rates may continue to change.
What the math leaves out
CD interest is taxable income in the year it's earned, even for multi-year CDs. For a 2-year CD, you'll owe taxes on the first year's interest on your tax return for that year, before the CD matures. Plan accordingly if you're holding a CD across tax years.
CD laddering — splitting a deposit across multiple CDs with staggered maturity dates — is a strategy this calculator doesn't directly model but is worth understanding. Instead of locking $50,000 into a single 5-year CD, you'd put $10,000 each into 1-year, 2-year, 3-year, 4-year, and 5-year CDs. Each year, one CD matures and can be rolled over or deployed elsewhere — preserving some liquidity while capturing longer-term rates on most of the balance.
Frequently asked questions
Are CDs safe?
Yes, with the standard caveats. CDs at FDIC-insured banks are protected up to $250,000 per depositor, per institution, per account category. CDs at NCUA-insured credit unions have equivalent protection. Above those limits, you're exposed to institution risk — rare but not theoretical. Spreading large deposits across multiple institutions is the straightforward workaround.
What happens at CD maturity?
Most banks automatically roll over CDs into a new CD of the same term at the current rate, with a brief grace period (typically 7–10 days) to make changes without penalty. If you don't want to roll over, mark the maturity date on your calendar and instruct the bank before or during the grace period. Auto-rollover into a much lower rate is a common and avoidable mistake.
When is a CD better than a high-yield savings account?
When you believe rates will fall and want to lock in the current rate for a defined period. If the Fed cuts rates and your HYSA rate drops from 4.5% to 2.5%, the CD you locked in at 4.5% for two years looks significantly better. If rates rise instead, the HYSA benefits and the CD locks you into the lower rate. CDs are a bet on rate direction; HYSAs float with the market.