Certificate of Deposit (CD) Calculator

CD Information
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Yrs
Mos
Total: 12 months
Advanced CD Options
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CD Rate Comparison
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About Certificates of Deposit (CDs)

Standard CD: Fixed term with fixed interest rate and early withdrawal penalties.

Jumbo CD: Requires larger minimum deposit (typically $100k+) for higher rates.

Bump-Up CD: Allows rate increase once during term if rates rise.

Liquid CD: Permits withdrawals without penalty (with lower rates).

Step-Up CD: Automatically increases rate at predetermined intervals.

IRA CD: CD held within an IRA account for tax advantages.

Most CDs charge penalties for early withdrawal, typically:

  • 1-3 month CDs: 1 month of interest
  • 3-12 month CDs: 3 months of interest
  • 1-5 year CDs: 6 months of interest
  • 5+ year CDs: 12 months of interest

Note: Some banks use different penalty structures, and liquid CDs may have no penalty.

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Current CD Rates
Term Avg. Rate Top Rate
3 Month 2.50% 3.25%
6 Month 3.00% 4.00%
1 Year 4.50% 5.50%
2 Year 4.25% 5.25%
3 Year 4.00% 5.00%
5 Year 3.75% 4.75%
Rates as of July 4, 2025. Online banks typically offer higher rates than brick-and-mortar banks.
CD Investment Examples ($)

Daily compounding:

  • Maturity: $10,512.67
  • Interest: $512.67
  • After tax (24%): $389.63 net interest

Monthly compounding:

  • Maturity: $58,521.23
  • Interest: $8,521.23
  • Early withdrawal penalty: $2,130 (6 months interest)

Quarterly compounding:

  • Maturity: $126,677.01
  • Interest: $26,677.01
  • Tax-deferred growth
CD Laddering Strategy
  • 1. Divide your investment into equal amounts
  • 2. Invest in CDs with staggered maturity dates
  • 3. As each CD matures, reinvest in longest-term CD
  • 4. Maintains liquidity while capturing higher rates
  • 5. Example: 1-year, 2-year, 3-year, 4-year, 5-year CDs