C-Deposit

Certificate of Deposit (CD) Calculator Estimate maturity value, compare compounding frequencies, and analyze early withdr...

Certificate of Deposit (CD) Calculator

Estimate maturity value, compare compounding frequencies, and analyze early withdrawal penalties — all in one tool.

Single CD

CD Ladder

Early Withdrawal

Deposit Amount ($)

Term 6 months 1 year 2 years 3 years 5 years

Annual Interest Rate (%)

Compounding Frequency Daily Monthly Quarterly Semi-Annually Annually

Marginal Tax Rate (%)

Build a 3- to 5-rung CD ladder for balanced yield and liquidity.

Total Amount ($)

Number of Rungs 3-Year 4-Year 5-Year

CD Deposit ($)

Original Term (Years)

APY (%)

Early Withdrawal Notes:
• Most banks charge 3–6 months’ interest as penalty
• Interest earned may be forfeited (not just reduced)
• Check your CD agreement — penalties vary by institution

Months Held

Penalty (Months of Interest) 3 months 6 months

$0

Maturity Value

$0

Interest Earned

$0

After-Tax Value

0.00%

Effective APY

Growth of Your CD Over Time

How CDs Work

A Certificate of Deposit (CD) is a low-risk savings product offered by banks and credit unions. In exchange for locking up your money for a fixed term (from 3 months to 10 years), you receive a higher interest rate than a regular savings account.

Key features:

• FDIC insured up to $250,000 per depositor, per institution
• Fixed rate — unaffected by market fluctuations during the term
• Penalties for early withdrawal — typically 3–6 months’ interest
• Auto-renewal — many CDs renew at lower rates unless you opt out

2025 Rate Environment: 1-year CDs average ~4.2% APY; 5-year ~4.5% (Source: FDIC).

CD Types & Strategies

• Standard CD

Fixed term, fixed rate. Most common type.

• Bump-Up CD

Allows 1–2 rate increases if market rates rise. Pays slightly lower initial APY.

• No-Penalty CD

Withdraw anytime after 7 days (or similar). APY ~0.5–1.0% lower than standard.

• Jumbo CD

Requires $100,000+ deposit. Marginally higher rates (~0.1–0.25% more).

• IRA CD

Held within a Traditional or Roth IRA. Tax-deferred or tax-free growth.

CD Laddering is the gold-standard strategy: split funds across multiple terms (e.g., 1-, 2-, 3-, 4-, 5-year) to balance yield, liquidity, and rate flexibility.

Early Withdrawal Realities

Withdrawing early usually costs more than advertised:

• Interest forfeiture — Some banks forfeit *all* interest if withdrawn before 6 months (Regulation D).
• 30-day minimum — Even no-penalty CDs often require 7–30 days’ notice.
• Tax inefficiency — You still owe taxes on accrued interest, even if penalized.

Example: $10,000 5-year CD @ 4.5% APY, withdrawn at 18 months with 6-month penalty:
• Interest earned: ~$675
• Penalty: ~$225 (6 mo × ~$37.50/mo)
• Net received: $10,450 (not $10,675)

✅ Always read the “Early Withdrawal” section of your CD agreement.

How to Use This Calculator

➡️ Single CD

Enter deposit, term, rate, and compounding. Get maturity value, APY, and after-tax estimate.

➡️ CD Ladder

Input total amount and rungs. The tool allocates equally and estimates average yield (uses +0.3%/yr yield curve).

➡️ Early Withdrawal

See real net proceeds after penalty — including forfeited interest.

Note: Calculations assume no fees, annual tax reporting, and simple penalty structure. Actual terms vary by institution.