What a CD
really earns.
A deposit, its APY and how long you leave it. See the interest at maturity, what breaking a CD early costs, and how it compares with the national average rates. Or split it into a ladder.
APY and APR explained · Early-withdrawal penalty · CD ladder · FDIC $250,000 limit
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Interest at maturity, 12 months
$400
You get back
$10,400
Broken at month 6
$100
National averages from the FDIC, as of October 19, 2026. Rates vary widely from bank to bank, so compare the APY you are offered with these.
At maturity
Interest earned
$400
- Deposit
- $10,000
- Interest at maturity
- $400
- APR equivalent compounded daily
- 3.922%
- Withdrawn at month 6
- $100
- Ladder, every rung held to term
- $0
- You get back
- $10,400
An estimate before tax. Interest grows at the APY for the time the money is in, value = deposit × (1 + APY)months/12. The early-withdrawal penalty is taken as the interest the deposit earns in that many months; some banks take it from your principal when it is more than the interest earned so far.
Figures checked November 2026. Sources: FDIC, understanding deposit insurance ($250,000 per depositor, per insured bank, per ownership category) · FDIC, national rates and rate caps (as of October 19, 2026).
Your ladder
| Rung | Deposit | APY | Matures | Interest | Value at maturity |
|---|
Month by month
What it is worth, and what you would walk away with if you broke it that month
| Month | Balance | Interest so far | Penalty | If withdrawn now |
|---|
How it works.
APY is what you earn
The annual percentage yield is the yearly growth with compounding already included. $10,000 at 4.00% APY is $10,400 after one year, however often the bank compounds.
value = deposit × (1 + APY)months / 12
APR is the rate before compounding
The annual percentage rate leaves compounding out, so it is a little lower than the APY. Compounded k times a year, APR = k × ((1 + APY)1/k − 1). When comparing savings accounts and CDs, compare APYs.
A ladder keeps money coming due
A CD ladder splits the money across CDs that mature one year apart. Each year one rung comes due: spend it, or roll it into a new long CD. You get longer-term rates without locking up everything at once.
Questions
What is the difference between APY and APR?
APY, the annual percentage yield, includes compounding: it is what the money actually grows by in a year. APR is the simple yearly rate before compounding, so it is slightly lower. At 4.00% APY compounded daily, the APR is about 3.92%. Banks quote savings and CD rates as APY, and APY is the number to compare.
Is my CD insured?
At an FDIC-insured bank, CDs are covered like other deposits: up to $250,000 per depositor, per insured bank, for each account ownership category. Money above that at one bank in one ownership category is not insured. Splitting larger sums across banks or ownership categories keeps them covered.
How much does it cost to break a CD early?
Each bank sets its own early-withdrawal penalty, usually a number of months of interest, often more for longer terms. If you break a CD before it has earned that much interest, the penalty can come out of your deposit. Set the penalty and the month under Fine-tune to see what you would walk away with.
What is a CD ladder?
A CD ladder splits your money into equal parts in CDs of different lengths, for example 1, 2, 3, 4 and 5 years. One rung matures every year, so part of the money is always about to be free, while most of it earns longer-term rates. When a rung matures you can use it or renew it as a new 5-year CD.
CD or high-yield savings account?
A CD locks in its rate for the term but charges a penalty if you take the money out early. A savings account lets you withdraw any time, but its rate can change. Money you may need soon, such as an emergency fund, usually belongs in savings; money set aside for a known date, such as a simcha or tuition, can fit a CD that matures before it.