Laddering your CDs provides you with access to a portion of your funds on a regular basis while offering you an attractive blended rate of return on your investments.

Here is an example. Say you have $25,000 to invest. You invest the first $5,000 for a year, the second $5,000 for two years, the third $5,000 for three years, the fourth $5,000 for four years, until your last $5,000 buys you a five-year CD. Each year is like a rung on a ladder – hence the term “laddering your CDs.” When the one-year CD matures, you invest it for a five-year term since the original five-year CD would only have four years until it matures. As each year’s CD comes due, you roll it into another five-year CD.

Over time you end up with a group of CDs earning five-year rates which are almost always at the high end of rates being offered. You also have the annual chance to access a fifth of your money for other purposes.

We would be pleased to help structure a ladder for you. Of course, it can be for shorter periods if that works better for you. Feel free to contact us at any time to discuss this investment option.

Try our new CD Ladder Calculator to see how this can work for you.

Please Note that Interest Rates and calculations are for demonstration purposes only. Please enter the appropriate interest rate for each CD Term as is available in the marketplace.