Savings & growth
Money Market vs. CD Calculator
A CD usually pays more, held to maturity. See the dollar gap — and whether it still wins after the early-withdrawal penalty if you end up needing the cash sooner.
Interactive tool
Money Market vs. CD Calculator
A CD usually pays more, held to maturity. See the dollar gap — and whether the CD still wins after its early-withdrawal penalty if you need the funds sooner.
Defaults to the FDIC national average rate for this term, as of July 20, 2026. Swap in a specific bank's current, dated quote — see /cds.
Defaults to the FDIC national average money market rate, 0.65% as of July 20, 2026.
Set this to 12 to see the held-to-maturity comparison instead of an early break.
Set by the bank and disclosed before you commit — commonly 3 months' interest on CDs of a year or less, 6+ months on longer terms. Check your specific CD's disclosure.
Held to maturity (12 mo), CD is ahead by
$104
- CD at maturity, 1.68% APY
- Interest earned: $169
- $10,169
- Money market over the same span, 0.65% APY
- Interest earned: $65
- $10,065
- CD, net of the early-withdrawal penalty
- $10,084 accrued, minus a $42 penalty
- $10,042
- Money market, same month — no penalty either way
- $10,033
If you break the CD at month 6, CD is ahead by $10
Frequently asked
Is a money market account the same as a CD?
No. A money market account stays liquid — money in and out anytime, at a rate that can change — while a CD locks the balance for a fixed term at a fixed rate, usually higher, and charges an early-withdrawal penalty if you break it before maturity. Both are typically FDIC-insured deposit accounts, but the tradeoff (rate vs. access) is opposite.
How is the early-withdrawal penalty calculated here?
As N months' interest on the original balance at the CD's own rate — the standard plain-English convention banks use (commonly 3 months' interest on CDs of a year or less, 6-plus months on longer terms), per the OCC. The exact formula and amount are set by the bank and disclosed before you open the CD, so treat this as a planning estimate and check your specific CD's disclosure for the real number.
Can the penalty ever cost more than the interest I've earned?
Yes, if you break the CD early enough. The penalty is calculated on the original balance, not just the interest accrued so far, so a very early withdrawal can eat into principal — this calculator models that (the CD's after-penalty value can dip below the money market's value at the same point, even though the CD's stated rate is higher).