Lock your rate in a CD, or stay liquid in savings? The honest answer depends on where rates go next. This calculator compares both in dollars — and lets you model savings rates drifting up or down.
Maintained by TheFinanceSection · Methods and corrections
CD at maturity
$15,645.00
4.3% locked for 12 months
Savings after same period
$15,595.61
rate drifting -0.5%/yr
CD wins by
$49.39
the price: your money is locked up
A CD locks its rate; a savings APY is variable and usually falls when the Fed cuts. The drift input lets you model that. Remember the tie-breakers: CDs charge an early-withdrawal penalty if you need the money, and savings keeps it available instantly.
It grows the same deposit two ways over your time horizon: once at a fixed CD APY, and once in a savings account whose APY starts at today's rate and drifts by the annual amount you choose (savings rates are variable and typically follow the Fed). The result is a straight dollar comparison, plus the trade-off the dollars don't show: the CD money is locked, the savings money isn't.
When rates are flat or falling, CDs win — you keep yesterday's rate while savings APYs sink. When rates rise, savings catches up and liquidity wins. If you might need the money, price that in: check the early withdrawal penalty before locking anything up. Can't decide? A CD ladder is the standard hedge — part locked, part maturing every year.
Both options are equally safe at insured institutions — confirm your balances sit under the limits with our FDIC insurance calculator, and look up any bank's health grade before moving money.
Neither is universally better. A CD locks a guaranteed rate but locks your money too; savings stays accessible but its rate can drop at any time. CDs tend to win when rates are falling, savings when rates are rising or when you may need the cash.
Because the savings rate is a promise for today only. If the Fed cuts 1% over the next year, a 4.2% savings account may pay 3.2% by year-end, while a 4.1% CD keeps paying 4.1% to maturity.
Not to market risk at an FDIC/NCUA-insured institution within coverage limits. The risks are different: early-withdrawal penalties on CDs (which can touch principal), and inflation quietly outpacing your rate in either account.
Money market accounts behave like the savings side of this comparison — variable rate, liquid, insured — sometimes with check-writing. Compare them on APY and fees exactly as you would a high-yield savings account.
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Build a CD ladder and see the maturity schedule and total interest.
Estimate what closing your CD early could cost, using the terms in your agreement.
Project how your savings grow with APY, compounding, and monthly deposits.
Convert between APR and APY and see what compounding really does to a rate.
Work out how big your emergency fund should be — and how long it takes to build.
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See how many years it takes for your money to double at any rate.
Start with your next money decision: plan a cash buffer, set a savings target, or compare buying power.