CD Savings Calculator
Plan your savings goals with CDs. Calculate how much to invest in CDs to reach your savings target, and see how different rates and terms affect your goals.
Savings Goal
Goal Progress
Savings Progress Over Time
CD Savings vs Regular Savings
CD Advantage: $951.38 more than regular savings
Using CDs for Savings Goals
CDs are excellent tools for achieving specific savings goals. Whether you're saving for a down payment, vacation, major purchase, or other financial goal, CDs offer higher returns than regular savings accounts while keeping your money safe.
Our CD savings calculator helps you determine how much to invest today to reach your target amount, accounting for compound interest and different CD terms.
CD Savings vs Regular Savings
CD Savings
- Higher interest rates (4-5% APY)
- Fixed term commitment
- Early withdrawal penalty
- FDIC-insured
- Best for specific goals
Regular Savings
- Lower interest rates (0.5% APY)
- Full liquidity
- No penalties
- FDIC-insured
- Best for emergency funds
Setting Savings Goals with CDs
1. Define Your Goal
Set a specific target amount and timeline. Examples: $50,000 down payment in 2 years, $10,000 vacation fund in 1 year.
2. Calculate Required Investment
Use our calculator to determine how much to invest today. Adjust the CD rate and term to see how they affect your required investment.
3. Choose the Right CD Term
Match your CD term to your goal timeline. If your goal is 2 years away, consider a 2-year CD or a CD ladder.
CD Savings Strategies
Single CD Strategy
Invest a lump sum in one CD that matures when you need the funds. Simple and straightforward for single goals.
CD Ladder Strategy
Spread your investment across multiple CDs with different maturity dates. Provides regular access to funds while earning competitive rates.
Hybrid Approach
Combine CDs with regular savings. Use CDs for the bulk of your goal, keep some in savings for flexibility.
Emergency Fund and CDs
CDs can be part of an emergency fund strategy, but consider liquidity needs:
- CD Ladder: Multiple CDs maturing at different times provide regular access
- Hybrid Approach: Keep 3-6 months expenses in savings, rest in CDs
- Consider Penalties: Early withdrawal penalties may be worth it for true emergencies
- FDIC Insurance: CDs are FDIC-insured up to $250,000 per bank
The key is balancing higher returns with accessibility for unexpected expenses.