Savings
CD Calculator
See what your certificate of deposit will be worth at maturity from the deposit amount, APY, term, and compounding frequency.
Value at maturity
Press calculate to see the breakdown.
Your deposit — · Interest earned —
How the CD calculation works
A certificate of deposit locks your money for a fixed term at a fixed rate. This calculator grows your deposit with compound interest: value = deposit × (1 + APY ÷ compounding periods) raised to (periods × years). The APY you enter already reflects compounding, so the calculator converts it to the matching per-period rate for the frequency you choose. More frequent compounding earns slightly more, which is why the result shows an effective annual yield alongside the maturity value. The split between your original deposit and the interest earned shows exactly what the lock-up bought you.
Two things matter more than the headline rate. First, the early-withdrawal penalty: most CDs charge several months of interest if you cash out before maturity, which can wipe out the advantage over a high-yield savings account if you might need the money. Second, the rate environment: when the Federal Reserve cuts rates, new CD rates fall, so locking a longer term can protect your yield, while in a rising-rate environment short terms let you reinvest higher sooner. That trade-off is the whole strategy behind CD laddering, where you split money across several terms so something matures every few months.
Practical tips for CD savers
First, compare APY not the advertised rate, because APY includes compounding and is the only apples-to-apples number. Second, check whether the CD is callable, since some banks can end a high-rate CD early when rates fall. Third, confirm FDIC insurance covers your full deposit at that bank, especially for jumbo CDs above $250,000. Finally, never put emergency money in a CD: the penalty for early withdrawal makes it the wrong home for cash you might need on short notice.
Frequently asked questions
What is a good CD rate right now?
It moves with Federal Reserve policy. Online banks usually pay far more than traditional branches, so compare several banks' APYs for the same term before committing.
What happens when a CD matures?
You get a grace period, usually 7 to 10 days, to withdraw or move the money. If you do nothing, most banks automatically renew it at the current rate for the same term.
Are CDs better than high-yield savings accounts?
CDs usually pay a little more in exchange for locking your money up. If you need flexibility, a high-yield savings account wins; if you will not touch the cash, the CD's guaranteed rate wins.
Is CD interest taxed?
Yes. Interest is taxed as ordinary income in the year it is credited, even if you leave it in the CD. There is no tax deferral unless the CD sits inside a retirement account.