Use these tables to calculate CD returns at various rates, terms, and deposit amounts.
CD Returns by Deposit Amount (2026 Rates)
At 4.50% APY (Competitive Online Rate)
| Deposit | 6 Months | 1 Year | 2 Years | 3 Years | 5 Years |
|---|---|---|---|---|---|
| $1,000 | $22 | $45 | $92 | $141 | $246 |
| $5,000 | $111 | $225 | $460 | $706 | $1,231 |
| $10,000 | $223 | $450 | $920 | $1,412 | $2,462 |
| $25,000 | $556 | $1,125 | $2,300 | $3,529 | $6,154 |
| $50,000 | $1,113 | $2,250 | $4,601 | $7,058 | $12,308 |
| $100,000 | $2,225 | $4,500 | $9,203 | $14,117 | $24,618 |
At 5.00% APY
| Deposit | 6 Months | 1 Year | 2 Years | 3 Years | 5 Years |
|---|---|---|---|---|---|
| $1,000 | $25 | $50 | $103 | $158 | $276 |
| $5,000 | $124 | $250 | $513 | $789 | $1,381 |
| $10,000 | $248 | $500 | $1,025 | $1,577 | $2,763 |
| $25,000 | $620 | $1,250 | $2,563 | $3,941 | $6,907 |
| $50,000 | $1,240 | $2,500 | $5,125 | $7,881 | $13,814 |
| $100,000 | $2,480 | $5,000 | $10,250 | $15,763 | $27,628 |
At 0.50% APY (Typical Big Bank Rate)
| Deposit | 6 Months | 1 Year | 2 Years | 3 Years | 5 Years |
|---|---|---|---|---|---|
| $10,000 | $25 | $50 | $100 | $151 | $253 |
| $25,000 | $63 | $125 | $251 | $377 | $631 |
| $50,000 | $125 | $250 | $501 | $754 | $1,263 |
| $100,000 | $250 | $500 | $1,003 | $1,508 | $2,525 |
The difference matters: $100,000 for 5 years at 5.00% earns $27,628 vs only $2,525 at 0.50%. That’s $25,103 more just for choosing a better bank.
Current Best CD Rates (2026)
| Term | Best Rate (APY) | Typical Online Rate | Big Bank Rate |
|---|---|---|---|
| 3 months | 4.75-5.00% | 4.25-4.50% | 0.15-0.50% |
| 6 months | 4.50-4.85% | 4.00-4.50% | 0.15-0.50% |
| 1 year | 4.25-4.65% | 4.00-4.25% | 0.20-0.50% |
| 18 months | 4.15-4.50% | 3.75-4.15% | 0.25-0.50% |
| 2 years | 4.00-4.35% | 3.50-4.00% | 0.25-0.50% |
| 3 years | 3.75-4.15% | 3.25-3.75% | 0.25-0.50% |
| 5 years | 3.50-4.00% | 3.25-3.50% | 0.25-0.50% |
Rates from FDIC-insured banks and credit unions. Updated quarterly.
CD Ladder Strategy
How a 5-Year CD Ladder Works
Split $50,000 across 5 CDs with staggered maturity dates:
| CD | Amount | Term | APY | Maturity | Interest Earned |
|---|---|---|---|---|---|
| CD 1 | $10,000 | 1 year | 4.50% | Year 1 → Reinvest for 5 years | $450 |
| CD 2 | $10,000 | 2 years | 4.25% | Year 2 → Reinvest for 5 years | $869 |
| CD 3 | $10,000 | 3 years | 4.00% | Year 3 → Reinvest for 5 years | $1,249 |
| CD 4 | $10,000 | 4 years | 3.85% | Year 4 → Reinvest for 5 years | $1,637 |
| CD 5 | $10,000 | 5 years | 3.75% | Year 5 → Reinvest for 5 years | $2,022 |
Benefits: After year 1, you have $10,000 maturing every year (liquidity) while earning higher long-term rates.
CD Ladder vs Single CD vs High-Yield Savings
| Strategy | $50,000 Over 5 Years | Total Interest | Access to Cash |
|---|---|---|---|
| Single 5-year CD at 3.75% | One lump at maturity | $10,112 | None for 5 years |
| 5-year CD ladder (see above) | $10K matures yearly | $9,827 | $10K per year |
| High-yield savings at 4.00% | Anytime withdrawal | $10,833 | Anytime |
| Checking account at 0.01% | Anytime | $25 | Anytime |
In a declining rate environment, locking in with CDs wins. In a stable/rising rate environment, HYSAs may outpace CDs.
CD vs Other Safe Investments
| Investment | Current Yield | FDIC Insured | Liquidity | Tax Treatment |
|---|---|---|---|---|
| 1-Year CD | 4.25-4.65% | Yes ($250K) | Locked (early withdrawal penalty) | Federal + state income tax |
| High-yield savings | 4.00-4.50% | Yes ($250K) | Anytime | Federal + state income tax |
| Money market account | 3.75-4.25% | Yes ($250K) | Limited (6 transfers/mo) | Federal + state income tax |
| 1-Year Treasury bill | 4.30-4.60% | N/A (gov backed) | Sell on secondary market | Federal only (no state tax) |
| I Bonds | 3.11% (current) | N/A (gov backed) | 1-year lockup, then flexible | Federal only (no state tax) |
| Series EE Bonds | 2.60% (fixed) | N/A (gov backed) | 1-year lockup | Federal only (no state tax) |
Early Withdrawal Penalties
| CD Term | Typical Penalty | Amount Lost on $10,000 at 4.50% |
|---|---|---|
| 3 months | 1 month interest | $38 |
| 6 months | 3 months interest | $113 |
| 1 year | 6 months interest | $225 |
| 2 years | 6-9 months interest | $225-$338 |
| 3 years | 9-12 months interest | $338-$450 |
| 5 years | 12-18 months interest | $450-$675 |
Some banks offer no-penalty CDs with slightly lower rates. Worth considering if you might need access.
CD Interest and Taxes
| Tax Bracket | Tax on $5,000 CD Interest | After-Tax Return (4.50% CD) |
|---|---|---|
| 10% | $500 | 4.05% |
| 12% | $600 | 3.96% |
| 22% | $1,100 | 3.51% |
| 24% | $1,200 | 3.42% |
| 32% | $1,600 | 3.06% |
| 35% | $1,750 | 2.93% |
| 37% | $1,850 | 2.84% |
CD interest is taxed as ordinary income. Consider holding CDs in tax-advantaged accounts (IRA CD) to defer or eliminate taxes.
When CDs Make Sense
| Scenario | Why CDs Work |
|---|---|
| Saving for a house (1-3 years out) | Guaranteed return, no market risk |
| Emergency fund tier 2 | 3-6 months expenses in accessible savings, remainder in CDs |
| Rates are high and expected to fall | Lock in today’s high rates before they drop |
| You need to separate savings from spending | Locked money = can’t impulsively spend it |
| Near retirement and need safety | Preserve capital with guaranteed yield |
| FDIC insurance matters | Full government backing up to $250K |
When to Skip CDs
| Scenario | Better Alternative |
|---|---|
| Need access to cash anytime | High-yield savings account |
| Investing for 5+ years | Stock index funds (higher expected returns) |
| Want state tax savings | Treasury bills (exempt from state tax) |
| Rates are rising | Shorter-term CDs or HYSA to capture higher rates |
| Large amounts (over $250K) | Treasuries (no FDIC limit) or spread across banks |
See the full CD guide for best rates, laddering strategy, and comparisons.
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy