CD Calculator
Calculate exactly how much your Certificate of Deposit earns at maturity — and compare all term lengths side by side to find the best fit for your savings strategy.
CD Details
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Enter your deposit amount and APY to see your maturity value, interest earned, and a full term ladder comparison.
Understanding Certificates of Deposit
What Is a CD?
A Certificate of Deposit is a time-deposit savings product offered by banks and credit unions. You agree to lock up your money for a fixed term — ranging from 3 months to 5+ years — in exchange for a guaranteed, typically higher interest rate than a regular savings account. At the end of the term (maturity), you receive your principal plus all interest earned.
CDs are one of the safest investments available. They're FDIC-insured at banks (or NCUA-insured at credit unions) up to $250,000 per depositor, per institution, per account category. Unlike savings accounts, the rate is locked in — meaning you know exactly what you'll earn.
FDIC Insurance Limits
The $250,000 FDIC limit applies per depositor, per bank, per account ownership category. If you have more than $250,000 to deposit, you can spread it across multiple banks, or use different ownership categories at the same bank (individual account, joint account, IRA, etc.) to maximize coverage. Deposits over $250,000 at a single bank in the same category are uninsured.
CD Laddering Strategy
CD laddering is a technique to balance earning higher long-term rates while maintaining regular access to some funds. Instead of putting everything into one 5-year CD, you split the money across multiple terms — for example, one CD each at 1, 2, 3, 4, and 5 years. As each CD matures, you reinvest it into a new 5-year CD (capturing the highest rate), and you always have a CD maturing within 12 months for liquidity.
Example: $50,000 5-Rung Ladder
- $10,000 → 1-year CD (matures in Year 1, reinvest into 5-year CD)
- $10,000 → 2-year CD (matures in Year 2, reinvest into 5-year CD)
- $10,000 → 3-year CD (matures in Year 3, reinvest into 5-year CD)
- $10,000 → 4-year CD (matures in Year 4, reinvest into 5-year CD)
- $10,000 → 5-year CD (matures in Year 5, reinvest into 5-year CD)
By Year 5, all rungs mature annually — you earn 5-year rates with annual liquidity.
CD vs. HYSA vs. Money Market
| Product | Rate | Liquidity | Best For |
|---|---|---|---|
| CD | Fixed, higher | Locked until maturity | Money you won't need soon |
| HYSA | Variable, competitive | Full access anytime | Emergency fund, near-term savings |
| Money Market | Variable, competitive | Full access (check writing) | Operational cash, business use |
Rate Environment & Locking In Rates
CD rates are highest when the Federal Reserve's benchmark rate is high. When rates are expected to fall, locking in a long-term CD protects you — if rates drop from 5% to 3%, your 5-year CD at 5% looks very attractive. When rates are expected to rise, shorter-term CDs or a ladder give you opportunities to capture higher rates as they appear.
Types of CDs
- Traditional CD — Fixed rate, fixed term, early withdrawal penalty.
- No-Penalty CD — Slightly lower rate, but you can withdraw without penalty after a brief holding period. Good for uncertain timelines.
- Bump-Up CD — Allows you to request one rate increase if rates rise during your term. Lower starting rate than traditional CDs.
- Jumbo CD — Minimum deposit of $100,000 (sometimes $50,000). May offer slightly higher rates. Same FDIC limits apply.
- Brokered CD — Purchased through a brokerage rather than directly from a bank. Can be sold on the secondary market (no early withdrawal penalty, but market value may be above or below par).