CD ladders: A Smart Way to Lock In Great Rates and Keep Your Money Within Reach
CD Laddering with Community Choice Credit Union gives you the best of both worlds: competitive rates and regular access to your savings. Instead of locking all your money into one CD, you spread it out so part of it is always coming due. That means guaranteed growth, built-in flexibility, and peace of mind. Start your ladder today and see how simple it is!
Have no fear of falling off this (certificate of deposit) ladder
In today’s changing rate environment, you shouldn’t have to choose between locking in a great rate or keeping your money accessible. That’s where a CD ladder comes in. With a ladder, you spread your savings across multiple CDs with different maturity dates. This strategy gives you:
- Guaranteed growth: Earn higher returns than a traditional savings account
- Built-in access: Every time a CD matures, you can choose to reinvest or use the cash
- Peace of mind: Your funds are federally insured and protected from market ups and downs
CDs are set up so that interest rates are guaranteed until they mature — just keep in mind that you can receive a penalty for withdrawing early. So, if you put in $1,000 to a 12-month CD earning 4% interest, that account will earn $40 in interest and contain $1,040 when it matures.
With CD laddering, it’s easy to deposit, earn interest, and access your funds with Community Choice
Laddering divides your deposits into several smaller CDs, each one maturing on a different timeline, so you gain regular access to part of your savings plus interest. By laddering, you stagger the maturity dates of multiple CDs, ensuring consistent returns on a quicker timeline. Consider this example:
$10,000 Ladder Example
- Divide into five $2,000 CD’s (1-5 years)
- After Year 1: $2,000 + interest becomes available
- After Year 2: another $2,000 + interest
- After Year 3: another $2,000 + interest
- After Year 4: another $2,000 + interest
- After Year 5: another $2,000 + interest
If waiting for a full year feels too long, you can build a mini ladder for quicker access to your money. With a “mini” ladder, interest would mature on a faster schedule. Consider this example with a $10,000 budget, where you build a “mini” ladder by opening a new $2,500 CD every three months. Plus, if you don’t need to use those funds at maturity, you can simply roll them into a new CD to maintain the ladder.
Pro Tip: Typically, longer-term CDs earn higher rates of return. As each CD in your ladder matures, you can choose whether to access the funds or reinvest them into a new long-term CD, helping you lock in even better returns over time.
CDs are a safe, reliable way to grow your savings while taking advantage of today’s higher interest rates. With a ladder, you add an extra layer of flexibility-ensuring that part of your money is always within reach while the rest keeps earning. Whether you choose a traditional CD or a CD ladder, both options give you the confidence of guaranteed growth and financial peace of mind.
Let us show you how easy building a CD ladder can be!
Schedule a one-on-one appointment with one of the certified financial experts at Community Choice Credit Union today. Whether you prefer to meet in person, over the phone, or virtually, we’ll make it easy to get the guidance you need — on your schedule. Let’s start building your brighter financial future, together!