What is CD Laddering?

CD Laddering is staggering the money you invest so that you have the maximum earning potential with high liquidity. It also takes advantage of rising interest rates and protects you against investing a large sum into a lower rate.

For Example, you have $20,000 to invest in a CD, but you may need money available for emergency purposes.  Staggering your deposit into separate CD terms maximizes your liquidity without compromising for a lower interest rate. Read on to find out how.

How does it work?

Let’s continue with the previous example:

You have $20,000 to invest and you want $4,000 available for withdrawal each year.

• Divide the $20,000 into five $4,000 portions.
• The first $4,000 is invested in a 1 year CD. The remaining $4,000 portions are invested in 2, 3, 4, and 5 year terms.
• As each CD matures the funds would reinvest into the longest term of 5 years.
• By the end of the fourth year, you will have 5 CDs at the best possible rates with a CD maturing every year for your use.

What are the advantages of CD laddering?

• Take advantage of higher rates – Enjoy earning at the maximum interest rate.
• High liquidity – Enjoy the security of knowing that you will be access at least some of your money within a relatively short timeframe.

How do I get started?

Contact us today and start putting your money into several CD accounts. Apply today. We offer very competitive rates. (See our current rate sheet).

As each of your shorter term CD matures, reinvest them into a new CD with a term equal to your longest term CD.

We will automatically reinvest your CD for you! You can enjoy high rates yet maintain frequent access to a portion of your money!