CD Calculator

APY stands for Annual Percentage Yield — the real yearly return on your deposit after accounting for compounding. Because compounding is already baked in, you can use APY directly to calculate how much your CD will earn without worrying about how often interest compounds.

Most CDs charge an early-withdrawal penalty if you pull your money out before the maturity date. The penalty is typically several months of interest (e.g., 90–180 days' worth), and in some cases it can eat into your principal if the CD is young enough. Always check your bank's specific terms before opening a CD.

Yes — interest earned on a CD is taxed as ordinary income in the year it is credited to your account, even if you don't withdraw it. Your bank will send a Form 1099-INT each year reporting the interest earned. Consider a tax-advantaged account (IRA CD) if you want to defer or eliminate the tax.