CD Calculator: Best Certificate of Deposit Rates in 2026 and What You'll Earn

A certificate of deposit is a fixed-rate, fixed-term savings product. You deposit money, agree not to touch it for a set period, and the bank pays you a guaranteed rate. No market risk, FDIC insured up to $250,000.

In 2026, CD rates are meaningfully above traditional savings accounts, though slightly below their 2023 peak. The best 12-month CDs are paying around 5%.

Current Top CD Rates by Term (2026)

| Bank | Term | APY | |------|------|-----| | Marcus by Goldman Sachs | 12 months | 5.10% | | Ally Bank | 18 months | 4.75% | | Discover | 24 months | 4.60% | | Marcus | 6 months | 4.90% | | Ally | 12 months | 4.80% | | Capital One | 12 months | 4.85% | | Synchrony Bank | 18 months | 4.70% |

Rates are higher for shorter terms right now because the market expects rates to fall. This is called an inverted yield curve. Lock in a longer term if you believe rates will decline.

What You'll Earn at Different Deposit Amounts

Here's annual interest earned at a 5.10% APY (Marcus 12-month CD):

| Deposit | Interest at 5.10% (1 Year) | Total Balance at Maturity | |---------|---------------------------|--------------------------| | $10,000 | $510 | $10,510 | | $25,000 | $1,275 | $26,275 | | $50,000 | $2,550 | $52,550 | | $100,000 | $5,100 | $105,100 | | $250,000 | $12,750 | $262,750 |

Note: $250,000 is the FDIC insurance limit per depositor per bank. If you have more than that, spread it across multiple banks or use a CDARS program.

Earnings Comparison Across Terms

If you deposit $25,000, here's what you earn at different terms assuming current best rates:

| Term | APY | Interest Earned | Total at Maturity | |------|-----|----------------|-------------------| | 6 months | 4.90% | $608 | $25,608 | | 12 months | 5.10% | $1,275 | $26,275 | | 18 months | 4.75% | $1,793 | $26,793 | | 24 months | 4.60% | $2,362 | $27,362 | | 36 months | 4.40% | $3,415 | $28,415 |

The 24-month CD earns more total dollars despite the lower APY because it runs longer. But you're locked up for 2 full years.

CD vs High-Yield Savings Account: Which Wins?

This is the most important question for idle cash. Here's the honest tradeoff:

High-Yield Savings Account (HYSA)

• Rate: currently 4.20-4.50% APY
• Liquidity: withdraw anytime, no penalty
• Rate risk: the bank can lower the rate at any time
• Best for: emergency fund, short-term savings, money you may need

Certificate of Deposit (CD)

• Rate: currently 4.60-5.10% APY
• Liquidity: locked for the term. Early withdrawal penalty = 3-6 months interest typically
• Rate risk: none. Your rate is guaranteed for the full term
• Best for: money you definitely won't need for a defined period

In a falling rate environment, CDs win. If the HYSA rate drops from 4.50% to 3.50% in 6 months (which happens when the Fed cuts rates), you'd wish you locked in at 5.10% for 12 months.

In a rising rate environment, HYSAs win. Your HYSA rate rises with the market; your CD stays at the rate you locked in.

Early Withdrawal Penalties

Before you commit, understand the penalty for breaking the CD early. Most banks charge 3-12 months of interest depending on the term.

Marcus example: early withdrawal penalty on a 12-month CD is 270 days of interest. On $25,000 at 5.10%, that's about $941 — roughly 9 months of the interest you'd earn.

Break a 12-month CD at month 3 and you actually lose money. Break it at month 9 and you get out flat. Break it at month 11 and you still come out ahead, though barely.

CD Laddering: Flexibility Without Sacrificing Yield

A CD ladder splits your money across multiple terms so some portion matures regularly. Classic approach:

Deposit $50,000 across five CDs:

• $10,000 in 12-month CD at 5.10%
• $10,000 in 18-month CD at 4.75%
• $10,000 in 24-month CD at 4.60%
• $10,000 in 36-month CD at 4.40%
• $10,000 in 48-month CD at 4.25%

Every year, one CD matures. You either spend it or reinvest at whatever rates are current. You never have all your cash locked up for the full long term.

CD Interest Is Taxable

CD interest is ordinary income, taxed at your marginal federal and state rate in the year it's earned or credited. Even if you don't withdraw the interest, you owe taxes on it annually. This is called "phantom income" on multi-year CDs that credit interest at maturity.

Run the Numbers

Use the Compound Interest Calculator to model CD returns over any term and contribution schedule. Compare rates, terms, and see total earnings at maturity.