What a CD ladder is
Instead of putting all your savings in one CD, you divide it into equal parts and buy CDs with staggered terms — say, 1, 2, 3, 4 and 5 years. When the 1-year CD matures, you reinvest it in a new 5-year CD. After a few years, every rung is a 5-year CD, but one matures every year.
Build your ladder
| Rung | Amount | Example APY | Interest by maturity |
|---|---|---|---|
| Total |
Example APYs are the highest listings in our table for each term with a minimum deposit of $10,000 or less (1 year: 4.65% (online bank); 2 years: 4.82% (online bank); 3 years: 5.00% (credit union); 4 years: 4.95% (online bank); 5 years: 5.00% (credit union)). They’re for illustration — institution details are shared directly after you inquire, and you should confirm rates with each institution. As each rung matures, a classic ladder reinvests it in a new longest-term CD.
Why savers use ladders
- Regular access: part of your money becomes available on a predictable schedule.
- Less timing risk: you’re not betting everything on today’s rates.
- Longer-term rates: once the ladder is built, every new rung earns a long-term rate.
Variations
- Short ladder: use 3-, 6-, 9- and 12-month CDs for money you’ll need within a year.
- Barbell: split between short and long terms only.
- Bullet: buy CDs over time that all mature on one date, such as a tuition deadline.
Use our maturity planner to check each rung’s maturity date.