Calculate how much your Certificate of Deposit (CD) will be worth at maturity. Enter your deposit amount, APY, and term to see your total interest earnings.

How CD Interest Is Calculated

CDs use compound interest: A = P(1 + r/n)^nt, where P is your deposit, r is the annual rate (APY), n is the compounding frequency, and t is the term in years. Daily compounding (most common) earns slightly more than monthly or annual compounding.

Current CD Rate Environment

As of mid-2026, competitive CD rates range from 4.00% to 5.00% APY at online banks and credit unions, significantly higher than traditional big-bank CDs (often under 1%). Always compare rates before locking in — a 1% difference on a $10,000 5-year CD is worth about $500.

CD Laddering Strategy

Instead of putting all funds in one CD, split across multiple terms (e.g., 1, 2, 3, 4, 5 years). As each CD matures, reinvest at the longest term. This gives you annual access to funds while capturing long-term rates.

FAQ

Are CDs worth it in 2026?
For emergency funds and short-term savings, CDs offer guaranteed FDIC-insured returns above most savings accounts. The tradeoff is early withdrawal penalties (typically 3-12 months of interest).

What happens when my CD matures?
Most banks auto-renew at the current rate after a 7-10 day grace period. Mark your maturity date and compare rates before letting it roll over.

Are CD earnings taxed?
Yes — interest is taxed as ordinary income in the year it's credited, even if you don't withdraw it. CDs in IRAs defer taxes.