Money guide · CD ladder
How does a CD ladder work?
Instead of putting all of your money into one CD, a ladder spreads it across several CDs that mature at different times. That way, part of your money keeps coming available on a schedule.
Split the money into pieces
You might divide the balance across several CDs instead of putting the whole amount into one. The exact split is up to you.
Pick different maturity dates
Each CD comes due at a different time. When one matures, you can use the cash, move it back to savings, or roll it into another CD if that still makes sense.
Avoid one big lockup date
The main benefit is flexibility. You are not betting your entire balance on one rate or waiting for one far-off date to get access to all of it.
Try it with your own numbers: The CD Ladder Builder shows when each piece comes due. You can also check currently verified CD terms before deciding how to space the ladder.