{"id":3288,"date":"2011-04-19T12:16:49","date_gmt":"2011-04-19T19:16:49","guid":{"rendered":"https:\/\/maysfinancial.local\/?p=3288"},"modified":"2017-02-26T02:01:55","modified_gmt":"2017-02-26T02:01:55","slug":"laddering-cds-certificate-deposit","status":"publish","type":"post","link":"https:\/\/maysfinancial.local\/articles\/laddering-cds-certificate-deposit\/","title":{"rendered":"How to Ladder Your CDs (Certificate of Deposit)"},"content":{"rendered":"

CD laddering is an effective investing strategy<\/strong> to produce consistent returns relatively higher than a standard savings account without completely sacrificing liquidity. \u00a0 The goal of CD laddering is to\u00a0 match the ‘rungs’ of your CD ‘ladder’ with the maturity dates of your CDs.<\/strong> The rungs represent your needs.\u00a0 The CD’s should mature when you need them<\/strong>, be it every three months, every six months, annually, etc.<\/p>\n

For this example my target term is five-years (5yr CD), I’d like my CD’s to mature annually and I have $10,000 to invest ($10,000\/5yr = $2,000 ea.).\u00a0 Now that I’ve established my needs, I’ll buy five $2,000 CDs that will mature one year apart.\u00a0 See the example below. <\/strong>Notice how the interest rate increases with the CD term.<\/strong> This allows us to eventually capture the highest interest rates for all of our CD<\/strong>s while still allowing them to mature when we need<\/strong> (annually in this case).<\/p>\n

Note:<\/strong> Below rates are just for example and do not represent actual rates.\u00a0 Current interest rates may be higher or lower depending on market conditions. <\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Year 1<\/strong><\/td>\nValue<\/strong><\/td>\nTerm<\/strong><\/td>\nRate<\/strong><\/td>\nMatures in<\/strong><\/td>\n<\/tr>\n
CD1<\/td>\n$2,000<\/td>\n1yr<\/td>\n1.78%<\/td>\n1yr<\/td>\n<\/tr>\n
CD2<\/td>\n$2,000<\/td>\n2yr<\/td>\n2.04%<\/td>\n2yr<\/td>\n<\/tr>\n
CD3<\/td>\n$2,000<\/td>\n3yr<\/td>\n2.32%<\/td>\n3yr<\/td>\n<\/tr>\n
CD4<\/td>\n$2,000<\/td>\n4yr<\/td>\n2.55%<\/td>\n4yr<\/td>\n<\/tr>\n
CD5<\/td>\n$2,000<\/td>\n5yr<\/td>\n2.89%<\/strong><\/td>\n5yr<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Year 2<\/strong><\/td>\nValue<\/strong><\/td>\nTerm<\/strong><\/td>\nRate<\/strong><\/td>\nMatures in<\/strong><\/td>\n<\/tr>\n
CD2<\/td>\n$2,000<\/td>\n2yr<\/td>\n2.04%<\/td>\n1yr<\/td>\n<\/tr>\n
CD3<\/td>\n$2,000<\/td>\n3yr<\/td>\n2.32%<\/td>\n2yr<\/td>\n<\/tr>\n
CD4<\/td>\n$2,000<\/td>\n4yr<\/td>\n2.55%<\/td>\n3yr<\/td>\n<\/tr>\n
CD5<\/td>\n$2,000<\/td>\n5yr<\/td>\n2.89%<\/strong><\/td>\n4yr<\/td>\n<\/tr>\n
CD6<\/td>\n$2,000<\/td>\n5yr<\/td>\n2.89%<\/strong><\/td>\n5yr<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Year 3<\/strong><\/td>\nValue<\/strong><\/td>\nTerm<\/strong><\/td>\nRate<\/strong><\/td>\nMatures in<\/strong><\/td>\n<\/tr>\n
CD3<\/td>\n$2,000<\/td>\n3yr<\/td>\n2.32%<\/td>\n1yr<\/td>\n<\/tr>\n
CD4<\/td>\n$2,000<\/td>\n4yr<\/td>\n2.55%<\/td>\n2yr<\/td>\n<\/tr>\n
CD5<\/td>\n$2,000<\/td>\n5yr<\/td>\n2.89%<\/strong><\/td>\n3yr<\/td>\n<\/tr>\n
CD6<\/td>\n$2,000<\/td>\n5yr<\/td>\n2.89%<\/strong><\/td>\n4yr<\/td>\n<\/tr>\n
CD7<\/td>\n$2,000<\/td>\n5yr<\/td>\n2.89%<\/strong><\/td>\n5yr<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Year 4<\/strong><\/td>\nValue<\/strong><\/td>\nTerm<\/strong><\/td>\nRate<\/strong><\/td>\nMatures in<\/strong><\/td>\n<\/tr>\n
CD4<\/td>\n$2,000<\/td>\n4yr<\/td>\n2.55%<\/td>\n1yr<\/td>\n<\/tr>\n
CD5<\/td>\n$2,000<\/td>\n5yr<\/td>\n2.89%<\/strong><\/td>\n2yr<\/td>\n<\/tr>\n
CD6<\/td>\n$2,000<\/td>\n5yr<\/td>\n2.89%<\/strong><\/td>\n3yr<\/td>\n<\/tr>\n
CD7<\/td>\n$2,000<\/td>\n5yr<\/td>\n2.89%<\/strong><\/td>\n4yr<\/td>\n<\/tr>\n
CD8<\/td>\n$2,000<\/td>\n5yr<\/td>\n2.89%<\/strong><\/td>\n5yr<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Year 5<\/strong><\/td>\nValue<\/strong><\/td>\nTerm<\/strong><\/td>\nRate<\/strong><\/td>\nMatures in<\/strong><\/td>\n<\/tr>\n
CD5<\/td>\n$2,000<\/td>\n5yr<\/td>\n2.89%<\/strong><\/td>\n1yr<\/td>\n<\/tr>\n
CD6<\/td>\n$2,000<\/td>\n5yr<\/td>\n2.89%<\/strong><\/td>\n2yr<\/td>\n<\/tr>\n
CD7<\/td>\n$2,000<\/td>\n5yr<\/td>\n2.89%<\/strong><\/td>\n3yr<\/td>\n<\/tr>\n
CD8<\/td>\n$2,000<\/td>\n5yr<\/td>\n2.89%<\/strong><\/td>\n4yr<\/td>\n<\/tr>\n
CD9<\/td>\n$2,000<\/td>\n5yr<\/td>\n2.89%<\/strong><\/td>\n5yr<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

CD laddering is an effective investing strategy to produce consistent returns relatively higher than a standard savings account without completely sacrificing liquidity. \u00a0 The goal of CD laddering is to\u00a0 match the ‘rungs’ of your CD ‘ladder’ with the maturity dates of your CDs. The rungs represent your needs.\u00a0 The CD’s should mature when you […]<\/p>\n","protected":false},"author":1,"featured_media":3991,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[2,9],"tags":[43,44,65,74,93,100,122],"_links":{"self":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/posts\/3288"}],"collection":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/comments?post=3288"}],"version-history":[{"count":0,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/posts\/3288\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/media?parent=3288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/categories?post=3288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/tags?post=3288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}