Result
How to use this calculator
Enter your deposit, the CD's APY, and the term in months. The calculator shows the maturity value, total interest, and the equivalent nominal APR for your chosen compounding frequency. Share a pre-filled link like ?deposit=25000&apy=4.25&term=12&comp=monthly.
2026 CD rate context (verified)
As of September 2026, top online banks and credit unions pay roughly 4.10–4.50% APY on 1-year CDs, while the national average sits near 2.05% APY (Bankrate figures, retrieved 2026-09-18). That gap is why shopping around matters: on a $25,000 one-year CD, the top rate earns about twice the interest of the average one. The default example here uses 4.25% — the middle of the top-rate band.
The formula
With an APY, maturity value = deposit × (1 + APY)^(term ÷ 12) — the APY already bakes compounding in, so the final value is identical whether the bank compounds daily or annually. What changes with frequency is the equivalent nominal APR: APR = m × ((1+APY)^(1/m) − 1), where m is the number of compounding periods per year. A 4.25% APY is about 4.17% APR compounded monthly.
Example: $25,000 at 4.25% APY for 12 months
Maturity value = $26,062.50 — interest earned $1,062.50. At the ~2.05% national average the same CD would earn only about $512.50, so comparing rates is worth roughly $550 on this deposit alone.
FAQ
What is the difference between APY and APR?
APY (annual percentage yield) includes the effect of compounding — it is what your money actually earns in a year. APR (annual percentage rate) is the simple nominal rate before compounding. A 4.25% APY equals about 4.17% APR with monthly compounding, or 4.16% with daily compounding. When comparing CDs, APY is the apples-to-apples number.
How are early withdrawal penalties calculated?
Typically as a multiple of interest: often 3 months of interest for CDs of 12 months or less and 6 months for longer terms, deducted from principal if earned interest is insufficient. Some banks instead reduce the rate for the days held. The exact schedule is in your CD agreement — check it before locking money away.
What are CD rates in 2026?
As of September 2026 the Fed's easing cycle has pulled rates down: the national average for a 1-year CD is about 2.05% APY, while the best online banks and credit unions still pay roughly 4.10–4.50% APY (Bankrate, retrieved 2026-09-18). Locking a longer term at the top of that band can be attractive if rates keep falling.