What a CD ladder is
A certificate of deposit (CD) pays a fixed rate if you leave the money in until the CD matures; taking it out early usually costs a penalty. A CD ladder splits your savings into several CDs with different maturity dates. For example, $10,000 split into five CDs of $2,000 for 1, 2, 3, 4 and 5 years. Each year one CD comes due: you can use the money or reinvest it, often in a new long-term CD at the end of the ladder.
How the calculator works
- Each CD gets an equal share: amount ÷ number of CDs.
- CD number n matures after n × the months between maturities.
- Value at maturity = share × (1 + APY)^(months ÷ 12), assuming interest stays in the CD.
- Total interest = the sum for all CDs; average APY = the simple average of the rates you entered.
National average rates
The rates filled in are the national averages the Federal Deposit Insurance Corporation (FDIC) published on October 19, 2026. They are averages across banks, not offers: many banks and credit unions pay different rates, so type the rates you are actually offered.
| Product | National average |
|---|---|
| Savings | 0.38% |
| Money market | 0.63% |
| 12-month CD | 1.76% |
| 24-month CD | 1.55% |
| 36-month CD | 1.39% |
| 48-month CD | 1.31% |
| 60-month CD | 1.41% |
Source: FDIC National Rates and Rate Caps. Savings rates are for the $2,500 tier; CD and money market rates average the $10,000 and $100,000 tiers. The FDIC updates them monthly.
An example
$10,000 split into five CDs of $2,000 maturing every 12 months, at the national averages above (1.76%, 1.55%, 1.39%, 1.31% and 1.41%), earns about $434.16 in interest in total, for about $10,434.16 at maturity. The 1-year CD returns $2,035.20 after a year.
Before you open CDs
- Check that the bank is FDIC-insured or the credit union is NCUA-insured: standard coverage is $250,000 per depositor, per insured bank, for each ownership category.
- Read the early withdrawal penalty and what happens at maturity: many CDs renew automatically unless you act during a short window.
- Compare with a high-yield savings account in our savings account guide, and see one CD on its own with the CD calculator.
Frequently asked questions
Why build a CD ladder instead of one long CD?
Part of your money comes due regularly, so you can use it or reinvest it at the rates of the day, without breaking a long CD and paying a penalty.
Are the rates in the calculator offers?
No. They are FDIC national averages published on October 19, 2026. Type the rates your bank or credit union offers.
Is interest on CDs taxed?
Yes, interest is generally taxable each year, even if it stays in the CD. Your bank reports it on Form 1099-INT.
Are CDs insured?
CDs at FDIC-insured banks and NCUA-insured credit unions are covered up to $250,000 per depositor, per institution, for each ownership category.
Is my information saved?
No. The numbers stay in your browser and are not sent to us.