A single certificate whose rate increases on a predetermined schedule, without needing to open multiple accounts the way a CD ladder does.
How it works
Principal times each year’s stated rate gives that year’s interest, summed across all years in the schedule for total interest earned.
What this does not include
This assumes simple (non-compounding) interest calculated on the original principal each year — some step-up CDs may compound interest earned in earlier years, which would produce a slightly higher total than this calculator shows.
How to use this calculator
- Enter the principal and each year’s stated rate.
Frequently asked questions
How is a step-up CD different from a CD ladder?
A step-up CD is one account with a pre-set schedule of rate increases; a CD ladder instead spreads money across multiple separate CDs maturing at different times, each reinvested independently.
Can a step-up CD be withdrawn early?
Generally subject to an early withdrawal penalty like a standard CD — the step-up schedule doesn’t typically change early withdrawal terms.
Why might a bank offer a step-up structure?
It can attract depositors wary of locking in today’s rate for the full term, offering built-in rate growth as an alternative to a CD ladder’s more hands-on reinvestment approach.
