CD Calculator (Certificate of Deposit)
Calculate maturity value, APY, and early withdrawal penalty for any CD term
The APY Confusion That Costs CD Investors Real Money
Banks advertise CD rates in two ways β and most people don't notice the difference. APR (Annual Percentage Rate) is the simple interest rate. APY (Annual Percentage Yield) is the effective rate after compounding is applied. For a CD compounded daily at 4.00% APR, the APY is actually 4.08%. That 0.08% gap doesn't sound like much, but on a $100,000 5-year CD, it's the difference between earning $21,665 and earning $22,099. When comparing CD offers, always compare APY β never APR.
Best CD Rates β June 2026 (Verified)
| Bank | Term | APY | Min. Deposit |
|---|---|---|---|
| First National Bank of America | Various | Up to 4.25% | $1,000 |
| TAB Bank | 1β5 years | 4.00β4.20% | $1,000 |
| Marcus by Goldman Sachs | 6 months | ~4.05% | $500 |
| LendingClub | 6 mo β 5 yr | 3.40β4.15% | $500 |
| Forbright Bank | 9 mo β 5 yr | 3.25β4.15% | $1,000 |
| National Average (all CDs) | 1 year | ~1.80% | Varies |
Rates as of June 2026 per Bankrate. CD rates have been declining since Fed began cutting in late 2024. Lock in current rates before further cuts.
The CD Ladder β How Smart Savers Use CDs
The biggest risk with a CD is locking your money away right before rates rise. The solution is a CD ladder: instead of putting $20,000 into one 5-year CD, you split it across five CDs of different terms. Here's a real $20,000 example:
| CD | Amount | Term | APY | Matures |
|---|---|---|---|---|
| Rung 1 | $4,000 | 1 year | 4.05% | June 2027 |
| Rung 2 | $4,000 | 2 years | 3.85% | June 2028 |
| Rung 3 | $4,000 | 3 years | 4.00% | June 2029 |
| Rung 4 | $4,000 | 4 years | 3.90% | June 2030 |
| Rung 5 | $4,000 | 5 years | 3.75% | June 2031 |
Every year, one CD matures. If rates are higher, you reinvest at the new rate. If rates are lower, you still have longer-term CDs locked at the better rate. This gives you liquidity every 12 months without sacrificing all your yield to a savings account.
Early Withdrawal Penalties β The Hidden Cost
Breaking a CD early is expensive. On a 1-year CD at 4.05% with a 6-month interest penalty, withdrawing after just 3 months means you lose more than you earned β you get back less than your opening deposit. Common penalties by term:
- 3β6 month CDs: 3 months of interest penalty
- 1-year CDs: 6 months of interest penalty
- 2β3 year CDs: 6β12 months of interest penalty
- 4β5 year CDs: 12β18 months of interest penalty
No-penalty CDs exist (Marcus, Ally, and others offer them) but typically offer 0.25β0.50% lower APY than standard CDs. If you have any doubt about needing the money, a no-penalty CD or HYSA is smarter than a standard CD.
CD vs High-Yield Savings Account in 2026
| Factor | CD | HYSA |
|---|---|---|
| Rate certainty | Fixed β locked for term | Variable β changes with Fed rate |
| Current best rate | ~4.25% APY | ~4.50% APY (SoFi w/ direct deposit) |
| Liquidity | Locked (penalty to exit) | Fully liquid β withdraw anytime |
| Best for | Money you won't need for a defined period | Emergency fund, money you may need |
| FDIC insured | Yes β up to $250,000 | Yes β up to $250,000 |
With HYSAs currently offering 4.25β4.50% and CDs offering 4.00β4.25%, the liquidity advantage of an HYSA is hard to ignore unless you specifically need the rate certainty of a CD.