CD vs Savings Calculator
Compare a certificate of deposit with a savings account, including the penalty if you need the money early.
Free · No sign-up · Your inputs stay in your browser
Your numbers
Lock the rate or keep access
Your projection
The CD comes out ahead
CD value at month 12
$15,630
Savings value at month 12
$15,570
Difference
$60
The savings rate is assumed to stay where it is, which is the one thing a savings rate is not promised to do. A CD's value is certainty; price the penalty before counting on it.
About this tool
Method, assumptions, practical next steps, and limits.
Certainty against access
A CD locks a rate for a term. A savings account keeps the money available but its rate can change. The right choice depends on when you might need the money and what you expect rates to do.
How the calculation works
Both balances grow monthly from their APYs. If you withdraw before the CD matures, the penalty is amount × monthly CD rate × months of interest forfeited. If you need the money after maturity, the CD proceeds earn the savings rate for the remaining months.
$15,000 in a 12-month CD at 4.20% ends the year at $15,630. The same amount in savings at 3.80% ends at $15,570, assuming the savings rate holds for the full year, which it is not promised to do.
When a CD is the wrong tool
An emergency fund needs to be available without a penalty. Money for a known date, such as a tuition bill or a down payment next spring, is where a CD earns its place.
