CD Calculator 2026
Calculate interest earned and APY on any certificate of deposit. Compare compounding frequencies and see your exact maturity value.
Best CD Strategy in 2026
With rates still elevated, locking in a 1-2 year CD at 4.5-5%+ makes sense for money you won't need soon. The key risk: if rates rise after you lock in, you're stuck at the lower rate (or pay an early withdrawal penalty to exit).
CD Laddering — Beat the Rate Risk
Instead of putting everything in one CD, split it across 5 CDs: 1-year, 2-year, 3-year, 4-year, and 5-year. Each year, as one matures, you reinvest at the current best rate. You always have access to 20% of your money every 12 months, and you average out the interest rate cycle.
CD vs High-Yield Savings Account
HYSAs offer flexibility (withdraw anytime) but rates are variable. CDs lock your rate for the term. If you're confident you won't need the money and rates are high, a CD wins. If you might need funds, HYSA gives you optionality.
Frequently Asked Questions
Competitive CD rates in 2026 range from 4.0–5.5% APY for 6-month to 2-year terms at online banks and credit unions. Traditional banks typically offer 0.5–2% less. Always compare APY (not APR) since APY includes the effect of compounding.
APR is the stated interest rate. APY includes compounding and is always higher than or equal to APR. For a 5% APR with daily compounding, the APY is approximately 5.13%. Banks are required to advertise APY so you can compare products accurately.
Most CDs charge an early withdrawal penalty — typically 60–150 days of interest for short-term CDs and 6–12 months of interest for 2–5 year terms. Some no-penalty CDs exist but pay lower rates. Always check the penalty terms before opening a CD.
CD laddering splits your money across multiple CDs with different maturity dates (e.g. 1-year, 2-year, 3-year). As each CD matures, you reinvest at the current best rate. This gives regular access to funds while maximizing long-term yield and reducing reinvestment risk.