How this math works

Break the CD when the extra yield over your remaining term is bigger than the penalty: (new rate - old rate) x balance x months remaining vs the penalty months of old-rate interest. We walk through two worked examples, the tax footnote, and the no-penalty CD alternative in the full guide. If your CD just auto-renewed, check the grace-period playbook first, and for the bigger picture see whether to lock rates at all in 2026.