Maryland 12-Month CD Yield Calculator
Calculate your earnings with Maryland-specific tax considerations
Maryland Maturity Summary
Gross Earnings:
Total Tax (State + Local):
Net Profit After MD Taxes:
Maturity Value:
Understanding 12-Month CD Rates in Maryland
Maryland savers often seek out 12-month Certificates of Deposit (CDs) as a safe-haven for capital. Unlike standard savings accounts, a CD locks your "Initial Deposit Amount" for exactly one year, usually providing a higher "Annual Percentage Yield" (APY) in exchange for restricted liquidity. In Maryland, regional institutions like Sandy Spring Bank or M&T Bank often compete with national online lenders, creating a dynamic market for local investors.
The "Maryland Tax Impact"
When calculating your true return, Maryland residents must account for the state's unique tax structure. Maryland applies a progressive state income tax (ranging from 2% to 5.75%) plus a mandatory county "piggyback" tax. For example, residents in Montgomery County or Baltimore City may see an additional 3.20% taken from their interest earnings. This calculator helps Marylanders visualize their net profit after these specific geographic deductions.
Example Calculation
If you invest $25,000 into a 12-month CD at a 5.00% APY, your gross interest would be $1,250. However, if you live in Maryland with a combined state and local tax rate of 7.95%, you will owe approximately $99.38 in Maryland taxes on that interest. Your actual net profit would be roughly $1,150.62.
Maryland Saving Tips
- Local Credit Unions: Check institutions like SECU Maryland for competitive 12-month terms that may beat national averages.
- Tax Efficiency: If you are in a high Maryland tax bracket, consider if the net yield after state taxes outperforms tax-exempt options.
- Laddering: Many Maryland investors split their deposits into multiple 12-month CDs staggered every three months to maintain liquidity.