APYCalculator.com

Certificate of Deposit

Typical APY range: 4.00%–5.00%· Backed by FDIC

A certificate of deposit (CD) is a time deposit at a bank or credit union. You commit a specific amount of money for a specific term — usually anywhere from 3 months to 5 years — at a specific APY. The bank cannot change that APY during the term, regardless of where market rates move. The trade-off is liquidity: pulling money out before maturity triggers an early withdrawal penalty, which typically equals 90 days of interest on shorter-term CDs (under 12 months) and 6 to 12 months of interest on longer-term CDs. CDs at FDIC-insured US banks carry the same $250,000 deposit insurance as savings accounts, applied per depositor, per insured bank, per ownership category.

Rate environment · as of 2026-05-21

Current US certificate of deposit rates

3.85% – 4.10% APY

Typical range across leading online certificate of deposits (12-month). Rates change frequently — verify the current rate at the institution before opening an account.

See top banks →
Top US banks for CDs

Current rates at these banks may fall outside the range shown above — verify at the institution.

Synchrony Bank
  • · No minimum deposit
  • · Fixed rate
  • · Early withdrawal: 90 days interest
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Marcus by Goldman Sachs
  • · Fixed rate
  • · Auto-renewal at maturity
  • · Early withdrawal: 270 days interest
Visit →
Discover Bank
  • · Fixed rate
  • · Terms from 3 months to 10 years
  • · Early withdrawal: 6 months interest
Visit →

These are widely-recognized banks offering certificates of deposit. APYCalculator does not earn commissions on links from this site and is not affiliated with any of these institutions.

When CDs beat HYSAs. A CD locks your rate; an HYSA locks nothing. If you expect rates to fall over the next 12 months, a CD bought today preserves the current rate while HYSAs follow rates down. If you expect rates to rise, a CD leaves you stuck at today's lower rate while HYSAs catch the increase. The honest answer: nobody reliably predicts rate moves. The strategy that handles uncertainty is a CD ladder.

How a CD ladder works. Suppose you have $25,000 to commit. Buy five $5,000 CDs at 1-year, 2-year, 3-year, 4-year, and 5-year terms. After year one, the 1-year CD matures; reinvest the proceeds in a new 5-year CD. After year two, the original 2-year CD matures; reinvest in another 5-year CD. After five years of laddering, you hold five 5-year CDs (the longest, highest-yielding term), with one maturing every year for ongoing liquidity. Our CD Ladder Calculator computes the weighted-average APY and the maturity schedule for any ladder configuration.

Early withdrawal penalty math. Read the penalty language before you sign. A 12-month CD at 4.50% APY with a 90-day-interest penalty effectively gives back about 1.13% of principal if you withdraw at month one — at that point your effective return is negative. The same penalty at month nine still leaves you with positive returns. Calculate your break-even before assuming a CD is risk-free for an emergency fund — for emergency funds, the consensus answer is to use an HYSA or cash management account, not a CD.

No-penalty CDs. A small number of banks offer CDs with no early withdrawal penalty in exchange for a slightly lower APY (often 0.10% to 0.30% below the comparable standard CD). For savers who want a rate lock with optionality, no-penalty CDs are a legitimate middle path between a standard CD and an HYSA.

Frequently asked questions

What happens to my CD at maturity?+
You typically have a grace period (usually 7–10 calendar days) to withdraw, transfer, or change the terms. If you do nothing, most banks automatically renew the CD into a new CD of the same term at the bank's current posted rate, which may be very different from the original rate. Always check your maturity options and instructions before the grace period ends.
Can I add money to an existing CD?+
Generally no. Standard CDs are single-deposit products — you commit one amount at the start. Some banks offer "add-on CDs" that allow additional deposits during the term, but these are uncommon and usually carry lower APYs. If you want to commit additional savings, you typically open a second CD.
Are CD rates negotiable?+
Almost never for retail CDs at major banks — the published rate is the rate. At smaller community banks and credit unions, very large deposits ($100,000+) may occasionally qualify for a slightly higher "jumbo CD" rate. Brokered CDs sold through brokerages like Fidelity and Schwab are sometimes available at higher rates than the issuing bank offers directly, because the brokerage negotiates institutional pricing.
What is a no-penalty CD and when does it make sense?+
A no-penalty CD lets you withdraw your full principal and earned interest before maturity without paying the standard early withdrawal penalty. The trade-off is a slightly lower advertised APY — usually 0.10% to 0.30% below comparable standard CDs at the same bank. They make sense when you want a rate lock but might need access to the money on short notice.
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