Use these tables to calculate CD returns at various rates, terms, and deposit amounts.
CD Returns by Deposit Amount
At a Hypothetical 4.50% APY
| 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 | $2,301 | $3,529 | $6,155 |
| $50,000 | $1,113 | $2,250 | $4,601 | $7,058 | $12,309 |
| $100,000 | $2,225 | $4,500 | $9,202 | $14,117 | $24,618 |
Interest = P x ((1 + APY)^(months / 12) - 1), assuming the APY is earned for the full term. 4.50% is the 12-month APY Popular Direct showed on October 5, 2026; rates differ by bank and term, so use the table below.
At a Hypothetical 5.00% APY
| Deposit | 6 Months | 1 Year | 2 Years | 3 Years | 5 Years |
|---|---|---|---|---|---|
| $1,000 | $25 | $50 | $103 | $158 | $276 |
| $5,000 | $123 | $250 | $513 | $788 | $1,381 |
| $10,000 | $247 | $500 | $1,025 | $1,576 | $2,763 |
| $25,000 | $617 | $1,250 | $2,563 | $3,941 | $6,907 |
| $50,000 | $1,235 | $2,500 | $5,125 | $7,881 | $13,814 |
| $100,000 | $2,470 | $5,000 | $10,250 | $15,763 | $27,628 |
Popular Direct’s 60-month APY was 5.00% as of October 5, 2026; other terms and banks were lower. Check best CD rates for the rates we read.
At the FDIC National Average Savings Rate (0.37%)
| Deposit | 6 Months | 1 Year | 2 Years | 3 Years | 5 Years |
|---|---|---|---|---|---|
| $10,000 | $18 | $37 | $74 | $111 | $186 |
| $25,000 | $46 | $93 | $185 | $279 | $466 |
| $50,000 | $92 | $185 | $371 | $557 | $932 |
| $100,000 | $185 | $370 | $741 | $1,114 | $1,864 |
The FDIC’s national average savings rate was 0.37% as of September 21, 2026.
The difference matters: $100,000 for 5 years at 4.50% earns $24,618, versus $1,864 at the 0.37% national average savings rate, if that rate stayed the same. That is about $22,754 more over five years.
Highest CD Rates We Read (October 2026)
| Term | Highest APY We Read (bank) | FDIC National Average (Sept 21, 2026) |
|---|---|---|
| 3 months | 3.60% (EverBank) | 1.13% |
| 6 months | 4.35% (Popular Direct) | 1.41% |
| 1 year | 4.50% (Popular Direct) | 1.73% |
| 18 months | 4.75% (Bread Savings) | n/a (no direct FDIC series) |
| 2 years | 4.70% (Popular Direct) | 1.61% |
| 3 years | 4.85% (Popular Direct) | 1.36% |
| 5 years | 5.00% (Popular Direct) | 1.38% |
Rates are from the bank pages we read, dated in best CD rates; they are not a survey of every bank. FDIC averages come from its National Rates and Rate Caps table. Always verify with the institution.
CD Ladder Strategy
How a 5-Year CD Ladder Works
Split $50,000 across 5 CDs with staggered maturity dates, using Popular Direct’s rates as of October 5, 2026 (confirm current rates before opening):
| 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 | 4.70% | Year 2 → Reinvest for 5 years | $962 |
| CD 3 | $10,000 | 3 years | 4.85% | Year 3 → Reinvest for 5 years | $1,527 |
| CD 4 | $10,000 | 4 years | 4.95% | Year 4 → Reinvest for 5 years | $2,132 |
| CD 5 | $10,000 | 5 years | 5.00% | Year 5 → Reinvest for 5 years | $2,763 |
Benefits: After year 1, you have $10,000 maturing every year (liquidity) while earning long-term rates. The rung interest above totals $7,834; it is each CD’s interest over its own term, not a five-year total, since each rung is reinvested at later rates.
CD Ladder vs Single CD vs High-Yield Savings
| Strategy | $50,000 Over 5 Years | Interest (approx.) | Access to Cash |
|---|---|---|---|
| Single 5-year CD at 5.00% | One lump at maturity | $13,814 | None for 5 years |
| High-yield savings at 4.05% (rate held for 5 years) | Anytime withdrawal | $10,979 | Anytime |
| Savings at the 0.37% national average (rate held for 5 years) | Anytime withdrawal | $932 | Anytime |
Savings rates are variable and will not stay fixed for five years; the savings rows show what the current rate would earn if it did. The ladder is not in this table because each rung is reinvested at later, unknown rates.
CD vs Other Safe Investments
| Investment | Rate | FDIC Insured | Liquidity | Tax Treatment |
|---|---|---|---|---|
| 1-Year CD (Popular Direct) | 4.50% | Yes ($250K) | Locked (early withdrawal penalty, varies by bank) | Federal + state income tax |
| High-yield savings (Bread Savings) | 4.05% | Yes ($250K) | Anytime | Federal + state income tax |
| Money market (FDIC national average) | 0.63% | Yes ($250K) | Limited (check current transfer limits) | Federal + state income tax |
| Treasury bills and notes | Check TreasuryDirect.gov | N/A (gov backed) | Sell on secondary market | Federal only (no state tax) |
| I Bonds | Check TreasuryDirect.gov (rate resets every 6 months) | N/A (gov backed) | 1-year lockup, then flexible (penalty before 5 years) | Federal only (no state tax) |
Early Withdrawal Penalties
Penalty formulas vary by bank; there is no industry-standard schedule. Examples from bank pages, with the cost on a $10,000 CD at a hypothetical 4.50% APY (days of interest = $10,000 x 4.50% x days/365):
| Bank and term | Penalty | Approx. cost on $10,000 at 4.50% |
|---|---|---|
| Ally, 3 to 24 months | 60 days of interest | $74 |
| Ally, 25 to 36 months | 90 days | $111 |
| Ally, 37 to 48 months | 120 days | $148 |
| Ally, 49 months or longer | 150 days | $185 |
| Capital One, 12 months or shorter | 3 months of interest | $112 |
| Capital One, longer than 12 months | 6 months of interest | $225 |
| Synchrony, 12 months or less | 90 days of simple interest | $111 |
| Synchrony, more than 12 but under 48 months | 180 days | $222 |
| Synchrony, 48 months or more | 365 days | $450 |
From each bank’s own pages; the Capital One cost is 3 or 6 months at the stated APY. Confirm the schedule with your bank. Some banks offer no-penalty CDs, often at somewhat lower rates.
CD Interest and Taxes
| Tax Bracket | Federal 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 | 2.83% |
CD interest is taxable income; the IRS says you generally include it when you receive it or can withdraw it without a substantial penalty (IRS Publication 550). Federal only; state tax would reduce the return further. Holding CDs in an IRA can defer or eliminate tax.
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 might fall further | Lock in today’s rates before they potentially 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 | Diversified stock index funds (higher expected returns, but with market risk) |
| Want state tax savings | Treasury bills/notes (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.
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