Want to Earn More From Your CDs?

Ladder your CDs to take advantage of higher interest rates AND have better access to your savings when you need them.

While CDs will help you to get a much better rate of return on your savings than parking your cash into a bank account, there are some downsides. Use a laddering strategy and you can bypass most of the drawbacks that come with locking your money into longer term CDs.

• A CD, or certificate of deposit is a way to invest money with a lender where you agree to deposit a certain amount for a set amount of time, usually somewhere between 3 months and five years.
• The benefit of a CD over a regular high yield savings account is that it allows you to benefit from a higher rate of interest and it is not subject to market fluctuations.

• The main downside to a CD is that your money is tied up for a set period of time, which is not useful if you need cash for an emergency.
• Also, while it is a good thing to be locked into a rate if it is a good rate, being locked in can be a negative thing if rates go up.

One of the best and most popular ways to combat these shortcomings is to use a CD Ladder that will allow you to have access to your money on a regular basis and will give you chances to keep reinvesting so that you can take advantage of better rates.

• Regular access to your money.
• Longer CD terms result in better interest rates. Initially, you will need some CDs with shorter terms, but as your ladder comes together, you will eventually end up benefitting from longer terms and higher rates.
• Because your CDs are maturing at regular rates, you will be able to roll them over at higher interest rates if they are available.
• You are freed from trying to time the market because the ladder corrects things for you. If some of your CDs have a lower rate, the other, higher-rate CDs will make up for them.