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CD Laddering Infographic


Enjoy more flexibility from your savings strategy.

With CD laddering, you'll get the short-term access you need with the higher rates from longer-term CDs you want. For this example, we've divided your investment among 1-, 2-, and 3-Year Term CDs, so you'll enjoy access to a portion of your funds every year.

Step 1: Split your investment into several CDs and stagger the terms based on how often you want access to your money. The graphic illustrates a sum of money being divided up among a series of 1-yr, 2-yr and 3-yr CDs. Step 2: As each CD matures, reinvest your funds into a new long-term CD. In this example, it’s a 3-year Term CD. The graphic shows 1 and 2-year CDs being invested in 3-year CDs when they become mature, and growing in value. Step 3: Once all your CDs have been reinvested into the longest term in your ladder the CDs will auto-renew at maturity to keep your CD laddering going. Step 4: Your investment continues to grow with long-term CD rates, and with one CD always near maturity, you’ll enjoy access to a portion of your funds should you need it.

Why laddering?

Short-term access to funds

By staggering CD terms, you'll always have one CD close to maturity. Which means you'll always have access to your funds for the unexpected.

CDs earn higher rates

CDs traditionally earn higher rates than standard savings accounts. And by reinvesting your funds back into your CD ladder, you'll benefit from higher CD rates on longer terms.

Safe and secure strategy

CDs offer a fixed rate. Plus, they're FDIC insured for added peace of mind.

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