What is the difference between CD yield and CD rate?

The rate is the input the bank applies to your balance; the yield is the output you receive once compounding and the term have done their work. On a one-year CD compounding daily, a 4.10% rate produces a 4.185% yield. Regulation DD requires banks to advertise the APY precisely so savers compare yields rather than rates.

What is a good CD yield?

A competitive CD yield tracks short-term Treasury yields, because that is the bank's alternative source of funds. If the best CD you can find pays materially less than a Treasury bill of the same maturity, the bank is not competing for your deposit and it is worth looking elsewhere.

How is CD yield taxed?

As ordinary income, at your full marginal rate, in the year the interest is credited — reported on Form 1099-INT when it exceeds $10. There is no preferential rate as there is for qualified dividends or long-term capital gains, which is why the after-tax yield sits so far below the headline.

Does a higher yield always mean a better CD?

No. A higher yield paired with a longer term means you are locked in longer, and one paired with a harsher early withdrawal penalty means less flexibility if rates rise. Compare the yield first, then read the penalty and the renewal terms before deciding.

CD Yield Calculator

Turn a quoted CD rate into the yield you actually keep.

Turn a quoted CD rate into the yield you actually keep — over the term, annualised, and after tax.

만기 시: US$53,106.31
이자: US$3,106.31

내 예금증서

예치 금액

이자율

이자율 표시 방식

기간

개월

1 년 6 개월

일반적인 기간

복리 주기

만기 금액: US$53,106.31
총 이자 수익: US$3,106.31
실효 APY: 4.10%

1 년 6 개월 예금증서에 US$50,000.00, 금리 4.10% APY, 일 복리 복리로 US$53,106.31까지 증가 — 이자 US$3,106.31, 월평균 US$172.57입니다.

기간 중 잔액

원금이자

수치를 표로 보기

기간 중 잔액
개월	원금	이자	잔액
개설 시	US$50,000.00	US$0.00	US$50,000.00
4mo	US$50,000.00	US$674.20	US$50,674.20
7mo	US$50,000.00	US$1,185.81	US$51,185.81
11mo	US$50,000.00	US$1,876.00	US$51,876.00
14mo	US$50,000.00	US$2,399.75	US$52,399.75
18mo	US$50,000.00	US$3,106.31	US$53,106.31

Calculated in your browser using A = P(1 + r/n)^nt. Nothing is sent to a server. Figures are before tax; confirm exact terms with your bank.

무료 — 가입 불필요
입력 즉시 반영
브라우저에서 실행

공식과 내용 최종 검토일 2026년 7월 21일. 은행 금리는 자주 바뀝니다. 현재 금리는 거래 기관에 직접 확인하십시오.

짧은 답변

How do you calculate the yield on a CD?

A CD's yield is the interest it pays expressed as a percentage of the deposit, and there are three versions of it that get confused with one another. Total yield over the term is simply interest ÷ principal: a $50,000 CD at 4.10% for 18 months earns $3,171.34, a total yield of 6.343%. Annualised yield — the APY — restates that as a per-year figure so terms of different lengths can be compared, here 4.185%. After-tax yield subtracts what you owe, and for most savers it is the only one that describes reality: at a 24% marginal rate the same CD keeps $2,410.22, an after-tax APY of roughly 3.181%. The reason the distinction matters is that CD interest is taxed as ordinary income at your full marginal rate in the year it is credited, not at the long-term capital gains rate, so the headline yield on a CD is further from the yield you keep than on almost any other saving instrument.

공식과 방법

계산 방법

Yield = (A − P) / P

Total yield over the term. Annualising it gives the APY: (A/P)^(1/t) − 1.

A: Maturity value at the end of the term
P: Principal — your opening deposit
t: Term in years, used to annualise
APY: Annualised yield — the per-year rate the term-yield implies
τ: Your marginal tax rate; after-tax yield ≈ APY × (1 − τ)

단계별 계산

1
Compute the maturity value A with A = P(1 + r/n)^(nt).
2
Subtract the principal to get the interest the CD paid.
3
Divide by the principal. That is the total yield across the whole term.
4
Raise (A/P) to the power 1/t and subtract 1 to annualise it into an APY.
5
Multiply the APY by (1 − your marginal tax rate) for the after-tax yield.

가이드

이 계산기 사용법

네 가지 값만 넣으면 결과가 바로 나옵니다. 제출할 것도, 가입할 것도 없습니다.

1
Enter your deposit and rate
Type the amount and the rate from the bank's rate sheet, setting the toggle to match whether they quoted an APY or a nominal APR.
2
Set the exact term
Yield is only comparable once it is annualised, and annualising needs the true term. A 13-month promotional CD is not a one-year CD.
3
Read the effective APY
The effective APY tile is the annualised yield. This is the figure to carry across to any other offer, whatever term it runs for.
4
Apply your tax rate
Multiply the APY by one minus your marginal rate. Compare that against a Treasury or municipal alternative, which are taxed differently.

예시

계산 예시

실제 숫자로 끝까지 풀어 본 예시입니다. 직접 넣으신 값과 대조해 계산기가 맞는지 확인해 보십시오.

An 18-month CD, shown as term yield, annual yield and after-tax yield

Deposit: $50,000
Rate: 4.10% nominal, compounded daily
Term: 18 months
Marginal tax rate: 24%

Interest earned: $3,171.34
Total yield over the term: 6.343%
Annualised yield (APY): 4.185%
After-tax yield: ≈ 3.181%

The three figures describe the same CD and differ by more than three percentage points. Quoting the 6.343% makes the CD look better than a one-year account paying 4.30%; annualising shows it is slightly worse. Always compare annualised.

Two offers on different terms, made comparable by annualising

Offer A: $50,000, 7-month promo at 4.60% APY
Offer B: $50,000, 18-month at 4.10% nominal

Offer A — interest: $1,329.08
Offer A — annualised yield: 4.600%
Offer B — interest: $3,171.34
Offer B — annualised yield: 4.185%

Offer B pays more than twice the dollars, and is the worse rate. That is the whole reason annualised yield exists. Offer A wins on yield but leaves you re-investing after seven months at whatever rate exists then — the trade-off the annualised figure cannot show you.

계산 방법

정확성과 가정

모든 계산기는 어떤 가정 위에서 움직입니다. 이 숫자가 무엇을 반영하고 무엇을 반영하지 않는지 그대로 밝혀 둡니다.

The after-tax figure applies a single flat marginal rate to all the interest. Real returns straddle brackets, and state income tax is on top of federal.
Yield is calculated on the opening deposit. If you add to the CD, or if the bank pays interest out rather than compounding it, the yield on your average balance differs.
The rate is fixed and the CD is held to maturity. An early withdrawal penalty can push the realised yield below zero on a short holding period.
No fee is assumed. Maintenance fees on a CD are rare but not extinct, and they come straight off the yield.

계산 관행은 미국 금융기관이 예금 계좌의 APY를 공시하는 방식을 규정한 Regulation DD(12 CFR 1030)를 따릅니다. 예금자보호 대상 기관의 예금은 예금자별, 은행별, 소유 형태별로 $250,000까지 FDIC의 보호를 받습니다.

1차 자료

이 규칙은 어디에서 왔나

이 계산기가 따르는 관행은 저희가 아니라 규제 기관이 정합니다. 각 항목은 해당 기관으로 연결되므로 저희 말을 믿는 대신 직접 확인하실 수 있습니다.

세부 사항

핵심 내용과 규칙

CD에 가입하거나 재예치하기 전에 알아 둘 만한 사실을 한눈에 정리했습니다.

Yield and rate are not synonyms. The rate is what the bank applies; the yield is what you end up with after compounding, term length and — if you count it — tax.
CD interest is taxed as ordinary income in the year it is credited, reported on Form 1099-INT. On a multi-year CD you owe tax annually even though you cannot touch the money until maturity, which is a genuine cash-flow consideration on long terms.
Comparing a CD against a Treasury bill needs the tax treatment included. T-bill interest is exempt from state and local income tax, so in a high-tax state a Treasury yielding slightly less than a CD can keep more.
"High-yield CD" is a marketing phrase with no regulatory definition. It usually signals an online bank with no branch network, which is a real cost advantage — but check the minimum deposit and whether the rate is promotional.
Credit unions call the payout a dividend rather than interest and quote a dividend rate alongside an APY. The APY is calculated the same way and remains the figure to compare.

서로의 관계

이 계산기가 필요한 분

Savers comparing terms that do not match
A 7-month promo against an 18-month standard cannot be judged on interest earned. Annualise both here and the ranking often flips.
Anyone in a higher tax bracket
At a 32% or 37% marginal rate the after-tax gap between a CD and a municipal bond fund narrows sharply. Knowing your after-tax yield is what makes that comparison honest.
Retirees living on interest
Income planning runs on the yield you keep, not the yield advertised. Work from the after-tax figure and the monthly interest line when you build the budget.

모든 CD 계산기

정기예금(CD)의 모든 측면을 다루는 아홉 개의 계산기입니다.

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