CD Ladder Calculator
Calculate returns on your Certificate of Deposit ladder investment strategy
Understanding CD Ladders
A CD ladder is a strategic investment approach where you divide your money into several certificates of deposit with different maturity dates. This strategy provides regular access to your funds while maintaining higher interest rates typically offered by longer-term CDs.
Benefits of CD Laddering
- Better interest rates than standard savings accounts
- Regular access to portions of your investment
- Reduced interest rate risk
- FDIC insurance protection
How to Build Your CD Ladder
Follow these steps to create an effective CD ladder:
- Determine your total investment amount
- Choose your preferred maturity intervals
- Divide your investment across multiple CDs
- Reinvest maturing CDs at longer terms