ECONOMY STUDIOCD calculator
What a CD will earn, at the FDIC's national average rate for its term: 1.76% for 12 months. And what it buys after inflation.
- Interest earned
- $176.00
- In today's money
- $9,812.92
- Change in buying power
- −$187.08
$10,000 in a 1-year CD at 1.76% APY grows to $10,176.00: $176.00 in interest.
With prices rising 3.7% a year, that will buy what $9,812.92 buys today, a loss of $187.08 in buying power.
FDIC national average CD rates, by term
Source: FDIC National Rates and Rate Caps, October 19, 2026. Rates at individual banks vary widely.
Every term at the national average
| Term | Average rate | Interest | At maturity |
|---|---|---|---|
| 3 months | 1.14% | $28.38 | $10,028.38 |
| 6 months | 1.39% | $69.26 | $10,069.26 |
| 1 year | 1.76% | $176.00 | $10,176.00 |
| 2 years | 1.55% | $312.40 | $10,312.40 |
| 3 years | 1.39% | $422.82 | $10,422.82 |
| 5 years | 1.41% | $725.16 | $10,725.16 |
How it works
The deposit grows at the APY for the length of the term; the APY already includes compounding. Picking a term fills in the FDIC's national average rate for that term, the average of what insured banks and credit unions pay; your bank's rate may be much higher or lower. The result is then divided by inflation to show what it will buy in today's money.
Compare with a regular account in the savings vs inflation calculator, or see the latest savings rates.
Questions
What is the average CD rate?
1.76% for a 12-month CD, according to the FDIC's national rates (October 19, 2026). The national averages run from 1.14% for 3 months to 1.41% for 5 years; the highest is 1.76% for 1 year. Rates at individual banks vary widely.
How is CD interest calculated?
Banks quote CDs by their annual percentage yield (APY), which already includes compounding. A deposit grows to deposit × (1 + APY)years, so $10,000 at 4% APY for 2 years becomes $10,816.
What's the difference between APR and APY?
The interest rate (APR) is the yearly rate before compounding; the APY includes the interest earned on interest. Interest compounded daily or monthly makes the APY slightly higher than the rate. Use "APR to APY" to convert a quoted rate.
Does a CD beat inflation?
Only if its rate is above inflation. Prices rose 3.7% in the 12 months to September 2026; the calculator shows what your CD will buy in today's money.
What isn't included?
Taxes on the interest and early withdrawal penalties: most CDs charge a penalty, often several months of interest, if you take the money out before the term ends. Deposits at FDIC-insured banks are insured up to $250,000 per depositor, per bank, per ownership category.
Sources
Educational tool, not financial advice. Results are estimates from the numbers you enter; lenders and banks calculate in their own ways. Default rates update automatically from official data.