CD Calculator
A CD (Certificate of Deposit) locks in a fixed interest rate for a set term. In 2026, top 1-year CDs are paying around 5.00% APY — significantly higher than standard savings accounts. This calculator shows your exact maturity value, APY, and after-tax yield for any deposit amount, term, and tax bracket.
How CD Interest Is Calculated
A CD pays compound interest using the same formula as savings accounts: A = P × (1 + r/n)^(nt), where r is the APR, n is the compounding frequency per year, and t is the term in years. Most CDs compound daily or monthly. The APY (Annual Percentage Yield) is the effective rate after compounding is applied and is what banks are required to advertise under the Truth in Savings Act.
Example: A $10,000 CD at 5.00% APR compounding daily for 1 year: APY = (1 + 0.05/365)^365 − 1 = 5.127% APY. Maturity value = $10,512.67. The difference between APR and APY is small on short terms but compounds meaningfully on 5-year CDs.
2026 CD Rate Environment
| Term | National Avg | Top Rate (Online) | $10k Earnings |
|---|---|---|---|
| 3-month | ~1.5% | ~4.85% | ~$121 |
| 6-month | ~1.8% | ~4.90% | ~$245 |
| 1-year | ~2.0% | ~5.00% | ~$513 |
| 2-year | ~1.9% | ~4.75% | ~$969 |
| 5-year | ~1.4% | ~4.50% | ~$2,462 |
Rates are indicative as of mid-2026. Compare rates at FDIC-member banks and credit unions before opening a CD.
💡 CD Laddering Strategy
Don't lock up all your cash in one long-term CD. A classic CD ladder splits $20,000 across four CDs: $5k in 3-month, $5k in 6-month, $5k in 1-year, $5k in 2-year. As each matures, reinvest at the current best rate. You get liquidity every 3 months, you're always holding some long-term CDs at higher rates, and you avoid the penalty risk of one large early withdrawal. This calculator's Scenario A vs. B mode lets you compare two CD options side by side.
CD (Certificate of Deposit) Calculator
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2026 Rate Benchmarks
Based on your results — what to do next:
Compare to investing in stocks
Your CD earns a guaranteed 5%. See how that compares to the 7–10% historical stock market return over the same 12 months.
Working toward a specific goal?
Your $10,512.67 CD maturity — is that enough? Work backwards from your goal to see if you need to ladder multiple CDs.
Know your full tax picture
CD interest of $513 is taxed as ordinary income. Calculate your real 2026 tax bracket to verify your after-tax yield.
CD Calculator FAQ
Are CDs safe? Are they FDIC insured?
Yes. CDs at FDIC-member banks are insured up to $250,000 per depositor, per institution, per account category. Credit union CDs are insured by NCUA up to the same limits. This makes CDs one of the safest investments available — your principal is guaranteed regardless of market conditions. The only risks are: early withdrawal penalties if you need the money before maturity, and inflation risk (if inflation outpaces your CD rate).
CD vs. HYSA: which is better in 2026?
High-yield savings accounts (HYSA) and CDs are both excellent for cash you don't need immediately. The tradeoff: CDs lock your money in exchange for a guaranteed rate; HYSAs offer flexibility but variable rates that follow the Fed Funds Rate. In 2026 with rates expected to remain elevated, 1-year CDs at 5.00% are competitive with the best HYSAs. Rule of thumb: money you won't need for 6+ months → CD. Emergency fund or near-term spend → HYSA.
What is a no-penalty CD?
A no-penalty CD allows early withdrawal without forfeiting interest (after a typical waiting period of 6–7 days). They offer rates slightly lower than standard CDs — often 0.25–0.50% less. If there's any chance you'll need the funds, the rate difference is worth paying for flexibility. Ally, Marcus, and several online banks offer competitive no-penalty CD products.
Should I buy a CD or Series I Bond?
Series I Savings Bonds offer inflation-adjusted rates set every 6 months. In 2026, I Bond composite rates are around 3.10–4.80% depending on the current inflation adjustment. They're tax-deferred (no annual 1099-INT) and exempt from state income tax — making them more efficient in high-tax states. Limits: $10,000/year per person in electronic form. For amounts over $10,000 or shorter time horizons, CDs win on flexibility and often on raw yield.