1-Year CD Calculator
Calculate interest earned on a 12-month CD. The most popular CD term, balancing competitive rates with reasonable lock-up. See your total earnings at maturity.
The 1-year CD is the most widely held CD term in the United States. It offers a meaningful rate premium over savings accounts while keeping your commitment to just twelve months. This makes it the go-to choice for savers building an emergency fund surplus, setting aside next year's tax bill, or simply wanting a safe place to grow cash that is already earmarked for a specific purpose. One-year CDs are also the benchmark term that financial publications quote when comparing bank rates.
Total at Maturity
$10,486.43
Interest Earned
$486.43
Stated APY
4.75%
Effective Annual Rate
4.86%
Month-by-Month Growth (First Year)
| Month | Balance | Interest This Month | Total Interest |
|---|---|---|---|
| 1 | $10,039.66 | $39.66 | $39.66 |
| 2 | $10,079.48 | $39.82 | $79.48 |
| 3 | $10,119.45 | $39.97 | $119.45 |
| 4 | $10,159.58 | $40.13 | $159.58 |
| 5 | $10,199.88 | $40.29 | $199.88 |
| 6 | $10,240.33 | $40.45 | $240.33 |
| 7 | $10,280.94 | $40.61 | $280.94 |
| 8 | $10,321.71 | $40.77 | $321.71 |
| 9 | $10,362.65 | $40.94 | $362.65 |
| 10 | $10,403.75 | $41.10 | $403.75 |
| 11 | $10,445.01 | $41.26 | $445.01 |
| 12 | $10,486.43 | $41.42 | $486.43 |
Key Considerations
- At 4.75% APY with daily compounding, $10,000 grows to approximately $10,486 after twelve months — earning $486 in guaranteed interest.
- The 1-year term is the backbone of most CD ladders. Opening five equal CDs at 1-, 2-, 3-, 4-, and 5-year terms means one matures every year for reinvestment.
- Early withdrawal penalties on 12-month CDs typically equal 3–6 months of interest. On $10,000 at 4.75%, that penalty could be $118–$237, eliminating most of your gains.
- If rates are expected to fall, locking in a 1-year CD at today's rate protects your return. If rates are rising, consider splitting between 6-month and 1-year terms.
- Some banks offer no-penalty CDs at the 1-year term with rates about 0.25–0.50% below standard CDs — worth considering if you value flexibility.
Quick Numbers
| Typical APY Range | 4.50% to 5.00% |
| Interest on $10,000 | $456 to $512 |
| Interest on $25,000 | $1,140 to $1,280 |
| Early Withdrawal Penalty | 3 to 6 months of interest |
| FDIC Coverage | $250,000 per depositor, per bank |
| Minimum Deposit | $500 to $1,000 at most banks |
How This Compares
The 1-year CD is the most popular term and typically offers the best rate among short-to-medium durations, paying about $250 more on $10,000 than a 6-month CD. Compared to a 5-year CD, the 1-year term earns less total interest but avoids the risk of being locked into today's rate if yields rise. It also outperforms Treasury bills and most money market accounts at current rates while remaining FDIC insured.
Frequently Asked Questions
- Is a 1-year CD better than a Treasury bill for a 12-month hold?
- At similar yields, both are low-risk options, but 1-year CDs often pay 0.10% to 0.30% more APY than comparable Treasury bills at current rates. Treasury interest is exempt from state and local taxes, which can close the gap for investors in high-tax states like California or New York. CDs offer FDIC insurance up to $250,000, while Treasuries are backed by the full faith and credit of the U.S. government.
- How do I build a CD ladder starting with 1-year terms?
- Split your deposit into five equal amounts and open CDs at 1-, 2-, 3-, 4-, and 5-year terms simultaneously. Each year one CD matures, providing cash or the option to reinvest at prevailing rates. When the 1-year CD matures, reinvest into a new 5-year term to maintain the ladder structure and capture the highest available yield on the longest rung.
- What is the penalty for breaking a 1-year CD before maturity?
- Most banks charge 3 to 6 months of interest as an early withdrawal penalty on 12-month CDs. On a $10,000 deposit at 4.75% APY, that penalty ranges from $119 to $237. If you withdraw within the first three months, the penalty can exceed your accrued interest and reduce your principal. Consider a no-penalty CD or high-yield savings account if there is any chance you will need the funds early.
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