CD Calculator
Calculate Certificate of Deposit earnings, APY and maturity value for any term.
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Frequently Asked Questions
Are CDs worth it in 2026?
CDs are worth considering when: you have cash you will not need for the CD term, you want guaranteed returns without market risk, and CD rates exceed high-yield savings account rates. In 2026, competitive CD rates range from 4-5.5% APY. The trade-off is liquidity — early withdrawal penalties (typically 3-6 months of interest) apply if you need the funds before maturity.
What is a CD ladder strategy?
A CD ladder splits your investment across multiple CDs with staggered maturities. For example: 25% in a 1-year CD, 25% in 2-year, 25% in 3-year, 25% in 4-year CD. As each matures, reinvest in a new 4-year CD. This provides liquidity every year while capturing longer-term rates. It eliminates the risk of locking up all your money when rates later increase.
How is CD interest taxed?
CD interest is taxed as ordinary income in the year it is earned, even if you do not withdraw it (for multi-year CDs, you owe tax on accrued interest annually). This differs from stocks where you control when gains are realized. Consider holding CDs in tax-advantaged accounts (IRA, HSA) if you are in a high tax bracket to defer or eliminate the tax on interest.