Certificate of Deposit (CD) Guide: Rates, Terms & Returns [2026]
How certificates of deposit work in 2026: rate ranges by term, what a $10,000 CD earns, CD types, early-withdrawal penalties, and CD ladders.
How CDs work in 2026: rate ranges by term, what a $10,000 CD earns, CD types, early-withdrawal penalties, CD ladders, and CD vs high-yield savings — with a free CD calculator.
A free CD calculator is built into this page: enter deposit, APY and term to see interest earned, balance at maturity and the cost of breaking the CD early.
Competitive 6- to 12-month CDs pay roughly 4.0%-4.6% APY; a $10,000 CD earns about $450 in a year at 4.50%.
Early withdrawal usually costs 3 to 12 months of interest depending on the term length.
A CD ladder keeps part of your money maturing every year while still capturing longer-term rates.
CDs and high-yield savings carry the same $250,000 FDIC/NCUA insurance — the difference is rate lock versus liquidity.