Build Your Wealth With a CD Ladder
A CD Ladder is a smart strategy to build your savings while still maintaining annual access to your money and reducing risk. Instead of opening a single CD, open multiple CD accounts with different terms and staggered maturity dates. As each CD matures, you can access your money if you need it or reinvest in a new CD — at what could be a higher rate. Your money keeps earning, but you still have structured access to it if the need arises. Take advantage of higher CD interest rates and earn more on your savings!
This is how it works:
Let’s say you have $50,000 to invest, and you want your money to work for you.
Open five CD accounts of $10,000 each instead of just one at $50,000.
CD 1 of $10,000 matures in 1 year
CD 2 of $10,000 matures in 2 year
CD 3 of $10,000 matures in 3 year
CD 4 of $10,000 matures in 4 year
CD 5 of $10,000 matures in 5 year
As each CD matures, roll them into a new five-year CD, or you can access your funds.
Watch your money grow
Access Your Cash
As each CD matures, you’ll have the opportunity to access your money if you need to.
CD laddering allows you to take advantage of the higher rates that CDs offer. You’ll have annual opportunities to reinvest your money as each CD matures.
Reduced or No Penalties
If you need to access your money, you can wait for one CD to mature or take one CD out and pay a much smaller penalty because your money is spread out.