To build a CD ladder, open multiple CDs at the same time with staggered maturity dates.
Here's an example of a CD ladder:
- Take an initial deposit of $15,000 to invest over 3 years.
- Open a 1, 2 and 3 year CD and fund with $5,000 each.
- Renew the CDs into a new 3 year CD at the end of each term to keep the ladder going, or cash it out.
By choosing to build a CD ladder, you can benefit from the higher interest rates typically available for longer term CDs while providing you with easy access to your money at planned intervals.
To keep your ladder going, provide renewal instructions in online banking or call us at 1-877-247-2559. You can renew into another term, or allow the CDs to automatically renew into the same term.
Get The Basics on starting a CD ladder.