Calculate your certificate of deposit returns, compare different terms, and plan your CD laddering strategy. Maximize your savings with competitive CD rates in 2025.
A Certificate of Deposit (CD) is a time deposit offered by banks and credit unions that pays a fixed interest rate for a specified term. CDs are FDIC insured up to $250,000, making them one of the safest investment options available.
CD rates are typically higher than savings accounts because you're committing your money for a set period. Longer terms usually offer higher rates, though this isn't always the case in inverted yield curve environments.
CD laddering involves investing in multiple CDs with different maturity dates. This strategy provides regular access to your money while maximizing returns and reducing interest rate risk.
CDs are ideal for short-term goals (1-3 years), emergency fund supplements, conservative investment strategies, and when you want to lock in attractive rates in a high-interest environment.