CD Calculator

A CD is a savings account that holds a fixed amount of money for a fixed term (months to years) and earns interest at a higher rate than regular savings. At maturity, you get your principal plus interest back. If you withdraw early, you pay a penalty (typically 3-6 months of interest).

In 2024-2025, competitive CD rates range from 4.5-5.5% APY for 6-12 month CDs. Rates vary by institution — online banks and credit unions typically offer significantly higher rates than traditional big banks. Always compare rates before committing.

Common penalties: 3 months interest (CDs under 1 year), 6 months interest (1-2 year CDs), 12 months interest (2-5 year CDs). Some banks have more severe penalties. Calculate the penalty before breaking a CD early — it can eat into your principal.

Instead of locking all money in one CD, split it into multiple CDs with staggered maturities. Example: $20,000 split into four $5,000 CDs maturing in 6, 12, 18, and 24 months. As each matures, reinvest at the current rate. You get liquidity every 6 months.

HYSAs offer flexibility — no maturity date, can add/withdraw money, competitive rates. CDs offer higher rates in exchange for locking money away. If rates are rising, prefer HYSAs (you can move money as rates improve). If rates are falling, lock in CDs at the current higher rate.