About CD laddering
Laddering is based upon the premise of not putting all your eggs in one basket or in this case, all your money in a single CD. A CD ladder is a group of FDIC insured, guaranteed rate CDs working together as one investment. Your total investment is spread among several individual CDs with terms ranging from short to long (terms range from 6 – 120 months). This combination of CDs works together to provide higher immediate returns while eliminating the interest rate guesswork from your CD purchase decision. Plus, a CD ladder can be tailored to best meet your specific savings goals.
View a Short-Term CD Ladder Example
View a Long-Term CD Ladder Example
CD ladder benefits
- A high blended rate right from the start: When you blend or average the rates paid on each of the CDs in your ladder, you see the immediate benefit of earning a higher blended interest rate from the start.
- Access to a portion of your money every 6 or 12 months: When opening a CD ladder, you decide how much and how often you want money to be available to you. Know that you are prepared for interest rate changes, whether up or down If interest rates go up, you can take advantage of the change because a portion of your CD ladder investment is available to be reinvested every 6 or 12 months. On the other hand, if interest rates go down, you won't suffer an abrupt decrease in your interest earnings because several of the CDs in your ladder will continue to earn at the higher rates you previously locked in.
- Dependable return that comes with guaranteed rate CDs: You cannot and will not ever lose the principal invested in your Dollar Bank CD Ladder, unlike some investments in the stock market or mutual funds. The amount of money that you use to open your CDs, as well as the interest you earn on the balance, is guaranteed.
- No fees or service charges: Unlike most investment alternatives, there are no management fees, sales loads, or other charges for this account.