Calculate your certificate of deposit earnings with current 4.5–5.5% rates. Explore CD laddering strategies and compare CDs to high-yield savings accounts and bonds.
Current certificate of deposit rates and key terms
Enter your deposit amount, interest rate, and term to see exactly how much your CD will earn at maturity.
Open CD Calculator →A Certificate of Deposit (CD) is a time-deposit savings product offered by banks and credit unions. In exchange for agreeing not to withdraw your funds for a specified term — ranging from 3 months to 5 years — you receive a guaranteed, fixed interest rate. CDs are FDIC-insured up to $250,000, making them one of the safest savings vehicles available.
In 2024, top CD rates range from 4.5% to 5.5% APY, comparable to or slightly above the best high-yield savings accounts. The guaranteed rate is CDs' key advantage: even if the Federal Reserve cuts interest rates tomorrow, your CD continues earning the locked-in rate until maturity.
CD laddering is a strategy where you divide your savings across multiple CDs with staggered maturity dates. Instead of committing all your money to one 5-year CD (and losing access for 5 years), you spread it across several CDs that mature at different times.
Example with $20,000 split into four $5,000 CDs:
CD 1: $5,000 at 4.8% APY, 6-month term. CD 2: $5,000 at 5.0% APY, 1-year term. CD 3: $5,000 at 5.2% APY, 2-year term. CD 4: $5,000 at 5.3% APY, 3-year term. As each CD matures, you reinvest the proceeds into a new long-term CD. This way you always have a CD maturing within 6–12 months (liquidity), while still capturing higher long-term rates.
CDs and HYSAs often offer similar rates (within 0.1–0.5% of each other), but they behave differently. HYSAs are fully liquid — you can withdraw anytime without penalty. CDs lock your money for the term with withdrawal penalties. CDs win when you want to lock in a rate before rates fall. HYSAs win when you need flexibility or the rate environment is rising.
U.S. Treasury bonds are backed by the federal government (not just FDIC up to $250K) and their interest is exempt from state income tax. This can make Treasuries more attractive than CDs for investors in high state-tax states. However, CDs are simpler to purchase and manage, especially for smaller savers.
Breaking a CD before its maturity date triggers an early withdrawal penalty. Typical penalties: 3 months of interest for CDs under 1 year, 6 months of interest for 1–2 year CDs, and 12 months of interest for 3–5 year CDs. On a $10,000 CD at 5% APY, a 6-month penalty costs $250. This is significant but sometimes worth it if rates have risen substantially and reinvesting in a higher-rate CD makes financial sense.
No-penalty CDs (offered by Ally, Marcus, and others) allow withdrawal without penalty after a brief holding period, usually 7 days. Rates are typically 0.1–0.5% lower than traditional CDs, but the added flexibility is worth it for many savers.
A CD is a fixed-rate savings product where you commit money for a set term (3 months to 5 years) in exchange for a guaranteed interest rate. FDIC-insured up to $250K. Current rates in 2024: 4.5–5.5% APY. Early withdrawal triggers a penalty of 3–6 months of interest.
Laddering splits savings across multiple CDs with different maturity dates. For example, four CDs maturing in 6 months, 1 year, 2 years, and 3 years. As each matures, reinvest in a new long-term CD. You get higher long-term rates while maintaining periodic liquidity.
Typically 3 months of interest for short CDs, 6–12 months for longer terms. On $10,000 at 5% APY, a 6-month penalty = $250. No-penalty CDs from Ally and Marcus let you withdraw after 7 days with no penalty, at slightly lower rates (0.1–0.5% less).
Choose a CD when: (1) You can commit the money for the full term. (2) You want to lock in rates before a potential Fed rate cut. (3) You're saving for a specific goal with a known date. Use a HYSA for emergency funds and money with uncertain timing.