Calculate what a certificate of deposit pays at maturity from rate and term.
| Input | Result |
|---|---|
| $10,000 at 4.5% for 12 months | $10,450.00 · $450.00 interest |
| $10,000 at 5% for 60 months | $12,762.82 · $2,762.82 interest |
| $25,000 at 4% for 24 months | $27,040.00 · $2,040.00 interest |
A savings product where you lock a fixed amount for a fixed term in exchange for a fixed interest rate. Withdrawing early usually triggers a penalty.
Enter APY if the bank advertises the annual percentage yield, which already accounts for compounding. If you only have the nominal rate, use the APY calculator first.
No. Interest is usually taxable and early withdrawal penalties are not modelled, this shows the gross maturity value.
The number a bank advertises is usually the APY, interest plus the effect of compounding, standardised so you can compare banks directly. This calculator's formula treats your input exactly that way: deposit × (1 + APY)^(months/12). Because APY already includes compounding, you should enter the advertised APY, not the nominal rate, or you will double-count.
A CD locks your money for the term, and cashing out early usually costs several months' interest — commonly in the range of 3 to 12 months depending on term length (each bank sets its own schedule, so read the disclosure sheet before assuming). The practical consequence: a 5-year CD you break after one year can end up paying less than an ordinary savings account. If there is a realistic chance you will need the money, either ladder the terms or use a no-penalty CD.
| Question | CD | High-yield savings | Treasury bills |
|---|---|---|---|
| Rate locked for the term? | Yes | No, moves with policy rates | Yes, at auction |
| Access before maturity | Penalty (bank-defined) | Free, instant | Sell on the market (price risk) |
| Federal insurance / backing | FDIC up to $250,000 | FDIC up to $250,000 | US government obligation |
| State income tax on interest | Usually taxable | Usually taxable | Exempt from state tax |
Deposit insurance covers $250,000 per depositor, per insured bank, for each ownership category (individual accounts, joint accounts, retirement accounts and so on are separate categories). A $400,000 individual CD at one bank is only half-protected; splitting it across two banks, or across ownership categories, restores full coverage. The FDIC's deposit-insurance pages include an official coverage tool (EDIE) for checking your exact setup before you move large sums.
CD interest is ordinary income in the year it is credited, even if you let it ride to maturity — you will generally receive a Form 1099-INT from the bank each year interest posts. If you are comparing CDs against Treasury bills, note that T-bill interest escapes state income tax while CD interest does not, which can matter in high-tax states.
How this page is built and kept current. Written and fact-checked by the MoneyCalcsHub editorial team. We do not sell financial products and we accept no payment to change a result, the arithmetic on this page runs in your own browser from the numbers you type.
Official sources used on this page:
Source-dependent figures are reviewed when the cited issuer publishes an update. Worked examples show the formula applied to the listed inputs; interactive results are calculated in your browser.
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