Our free CD Calculator (Certificate of Deposit interest calculator) shows the maturity value, total interest earned, APY and post-tax return on any US bank or credit union CD. Enter your deposit, the annual interest rate, the CD term in years and months, and the compounding frequency. You can also add your federal and state tax rates to see what you actually keep.
CD interest is taxable as ordinary income in the USA. Consult a CPA for your exact tax liability. FDIC (banks) and NCUA (credit unions) insure deposits up to $250,000 per depositor, per ownership category.
How to Use the CD Calculator
- Enter your initial deposit in US dollars, for example $10,000.
- Enter the annual interest rate offered by your bank or credit union.
- Set the CD term in years and months — e.g. 0 years 6 months for a 6-month CD.
- Choose the compounding frequency (daily and monthly are the most common for US CDs).
- Optionally add your federal and state tax rates. Maturity value, interest, APY and post-tax value update instantly.
What Is a Certificate of Deposit (CD)?
A Certificate of Deposit (CD) is a type of savings account offered by US banks and credit unions that pays a fixed interest rate in exchange for keeping your money deposited for a set period — called the CD term. CDs are FDIC-insured up to $250,000 per depositor, making them one of the safest savings vehicles in the United States. Unlike regular savings accounts, CDs offer higher rates in exchange for limited access to funds during the term.
CD formula: A = P × (1 + r/n)n × t, where P is the deposit, r is the annual rate, n is the compounding periods per year and t is the term in years. For example, $10,000 at 4.50% compounded monthly for 1 year grows to about $10,459.40 (APY ≈ 4.594%).
Typical CD Rates by Term — USA (2024–2025 reference)
| CD Term | Typical Rate Range (APY) | Best For |
|---|---|---|
| 3 months | 4.50% – 5.25% | Short-term parking of cash |
| 6 months | 4.75% – 5.40% | Semi-annual liquidity needs |
| 1 year | 4.50% – 5.35% | Most popular term |
| 2 years | 4.00% – 4.80% | Medium-term savings |
| 5 years | 3.75% – 4.50% | Long-term, rate-lock strategy |
CD vs High-Yield Savings Account (HYSA)
Both CDs and HYSAs offer higher rates than standard savings accounts, but they differ in flexibility. A HYSA lets you deposit and withdraw freely, while a CD locks your money for a fixed term — early withdrawal typically incurs a penalty of 3–6 months' interest. CDs are ideal when you won't need the funds until maturity and want to lock in a guaranteed rate.
Frequently Asked Questions
Is CD interest taxable in the USA?
Yes — CD interest is taxable as ordinary income at your federal and state income tax rates for the year in which it is earned (not only when you receive it at maturity). Our calculator includes optional federal and state tax fields so you can see your post-tax return.
What happens if I withdraw from a CD early?
Most US CDs impose an early withdrawal penalty of 3–6 months' interest (some long-term CDs up to 12 months). "No-penalty CDs" exist at some institutions but usually pay slightly lower rates.
Are CDs insured in the USA?
Yes — CDs at FDIC-insured banks are covered up to $250,000 per depositor, per ownership category. CDs at credit unions are insured by the NCUA to the same limit.
What is APY on a CD?
APY (Annual Percentage Yield) is the effective annual return including compounding. A CD with a 5.00% rate compounded monthly has an APY of about 5.116%. Our calculator shows the exact APY for your inputs.