A CD Ladder can provide a savings strategy with both short- and long-term benefits. To better understand this simple savings approach, see the example below.
Where to STartFor this example, we will use a $20,000 initial investment and build a 5-year ladder. To begin, divide the money evenly over the 5 years, by opening 5 CDs with terms 12 months apart. This provides access to a portion of your funds every 12 months.
after 12 monthsWhen your 12-month CD matures, you then may decide to ladder the investment by renewing it to a new 5-year CD. By renewing to the longest term, you will generally enjoy the highest rates available.
OngoingThis step is repeated each 12 months until all the original CDs have been renewed. After this, your laddering strategy is on auto-pilot. Each CD will continue to renew for 5 years, but one will mature every 12 months providing annual access to a portion of your funds.
Choose from a range of short- and long-term CDs to save for whatever you have in mind. CDs provide guaranteed rates for secure savings. There’s never a better time to start saving – than today!See CD Rates
Use this calculator to determine the additional interest you could earn with a CD laddering strategy.