Build Your CD Ladder
Enter your total investment amount and configure each rung of your CD ladder. Results update automatically as you type.
Quick presets:
Maturity Schedule
Each row shows when a CD matures, how much interest it earns, and its total value at maturity.
| Rung | Term | APY | Invested | Interest Earned | Value at Maturity | Maturity Date |
|---|---|---|---|---|---|---|
| Enter values above to see results | ||||||
CD Ladder vs. Single CD
Compare your ladder strategy against putting the entire amount into a single CD at the longest term.
What Is a CD Ladder?
A CD ladder is an investment strategy that splits a lump sum across multiple certificates of deposit with staggered maturity dates. Instead of locking all your money into a single long-term CD, you create several "rungs" -- each maturing at a different time.
For example, with $10,000 and a 5-rung ladder, you would invest $2,000 each into CDs maturing at 1, 2, 3, 4, and 5 years. When the 1-year CD matures, you reinvest it into a new 5-year CD. Over time, you end up with all your money in higher-yielding long-term CDs, but one matures every year, giving you regular access to your funds.
How a CD Ladder Works
- Divide your total investment equally among several CDs with different terms (e.g., 1 through 5 years).
- Wait for the shortest-term CD to mature (typically 1 year).
- Reinvest the matured CD into a new CD at the longest term in your ladder.
- Repeat each time a rung matures. After the initial cycle, every CD is at the longest term, but one matures each interval.
Benefits of a CD Ladder
Regular Liquidity
Unlike a single long-term CD where your money is locked up for years, a ladder provides periodic access to a portion of your funds without paying early withdrawal penalties.
Higher Average Rates
Longer-term CDs typically offer higher interest rates. A ladder lets you capture those higher rates while still maintaining some short-term positions. The blended rate is usually higher than a single short-term CD.
Interest Rate Risk Protection
If interest rates rise, your maturing CDs can be reinvested at the new, higher rates. If rates fall, your existing longer-term CDs continue earning the higher locked-in rate. This diversification across terms reduces the impact of rate changes.
FDIC Insurance
CDs are FDIC-insured up to $250,000 per depositor, per insured institution, per ownership category. A ladder strategy does not affect this coverage as long as you stay within the limits at each bank.
CD Ladder Strategy Tips
- Match your ladder to your goals. If you might need money in 6 months, include a 6-month rung. If you are saving for a goal 3 years out, a 3-rung annual ladder works well.
- Shop around for rates. Online banks and credit unions often offer significantly higher APYs than traditional brick-and-mortar banks. Rate differences of 0.5-1.0% can add up substantially over time.
- Consider no-penalty CDs. Some banks offer CDs that allow early withdrawal without a penalty. These can serve as a flexible rung in your ladder.
- Watch for rate environments. In a rising rate environment, a ladder lets you take advantage of higher rates as each rung matures. In a falling rate environment, your longer-term CDs lock in today's higher rates.
- Keep FDIC limits in mind. If your ladder exceeds $250,000, spread your CDs across multiple FDIC-insured institutions to maintain full insurance coverage.
- Automate reinvestment. Many banks let you set up automatic renewal. Just make sure the renewal terms and rates are competitive before the maturity date.
Typical CD Rates by Term
CD rates vary by institution and market conditions. The table below shows approximate ranges you might see. Always check current rates before investing.
| Term | Typical APY Range | Notes |
|---|---|---|
| 3 months | 3.50% - 4.75% | Very short commitment, lower rates |
| 6 months | 4.00% - 5.00% | Good for near-term needs |
| 1 year | 4.25% - 5.25% | Most popular CD term |
| 2 years | 4.00% - 5.00% | Moderate commitment |
| 3 years | 3.75% - 4.75% | Medium-term lock-in |
| 5 years | 3.75% - 4.75% | Higher rates for longer lock-in |
| 7 years | 3.50% - 4.50% | Long-term, less common |
Rates shown are approximate and vary by institution and economic conditions. Check bankrate.com or depositaccounts.com for current offerings.
Frequently Asked Questions
What is a CD ladder?
A CD ladder is an investment strategy where you divide your total deposit across multiple certificates of deposit with staggered maturity dates. For example, instead of putting $10,000 into a single 5-year CD, you split it into five $2,000 CDs maturing at 1, 2, 3, 4, and 5 years. As each CD matures, you can reinvest at the longest term or access the funds.
Why use a CD ladder instead of a single CD?
A CD ladder provides regular access to your money without early withdrawal penalties, takes advantage of higher long-term rates, and reduces interest rate risk. While a single long-term CD may offer a slightly higher rate, a ladder gives you liquidity at regular intervals and the ability to reinvest at potentially higher rates if rates rise.
How many rungs should a CD ladder have?
A typical CD ladder has 3 to 5 rungs, but you can use more or fewer depending on your needs. More rungs mean more frequent access to funds but smaller individual CDs. Fewer rungs mean larger CDs and less frequent access. A 5-rung ladder with 1-year intervals is the most common setup.
What happens when a CD in my ladder matures?
When a CD matures, you have several options: reinvest the principal plus interest into a new long-term CD to maintain the ladder, withdraw the funds if you need the money, or adjust your strategy based on current interest rates. Reinvesting at the longest term keeps the ladder going indefinitely.
Are CD ladders safe?
CDs are among the safest investments available. They are FDIC-insured up to $250,000 per depositor per institution. A CD ladder maintains this safety while adding liquidity benefits. Just ensure your total deposits at any single institution stay within FDIC limits.
Does this calculator store my data?
No. All calculations run entirely in your browser. No data is sent to any server, and nothing is stored.
Privacy & Limitations
- All calculations run entirely in your browser -- nothing is sent to any server.
- Results are estimates for planning purposes and should not replace professional financial advice.
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CD Ladder Calculator FAQ
What is a CD ladder?
A CD ladder is an investment strategy where you divide your total deposit across multiple certificates of deposit (CDs) with staggered maturity dates. For example, instead of putting $10,000 into a single 5-year CD, you split it into five $2,000 CDs maturing at 1, 2, 3, 4, and 5 years. As each CD matures, you can reinvest at the longest term or access the funds.
Why use a CD ladder instead of a single CD?
A CD ladder provides regular access to your money without early withdrawal penalties, takes advantage of higher long-term rates, and reduces interest rate risk. While a single long-term CD may offer a slightly higher rate, a ladder gives you liquidity at regular intervals and the ability to reinvest at potentially higher rates if rates rise.
How many rungs should a CD ladder have?
A typical CD ladder has 3 to 5 rungs, but you can use more or fewer depending on your needs. More rungs mean more frequent access to funds but smaller individual CDs. Fewer rungs mean larger CDs and less frequent access. A 5-rung ladder with 1-year intervals is the most common setup.
What happens when a CD in my ladder matures?
When a CD matures, you have several options: reinvest the principal plus interest into a new long-term CD to maintain the ladder, withdraw the funds if you need the money, or adjust your strategy based on current interest rates. Reinvesting at the longest term keeps the ladder going indefinitely.
Are CD ladders safe?
CDs are among the safest investments available. They are FDIC-insured up to $250,000 per depositor per institution. A CD ladder maintains this safety while adding liquidity benefits. Just ensure your total deposits at any single institution stay within FDIC limits.
Does this calculator store my data?
No. All calculations run entirely in your browser. No data is sent to any server, and nothing is stored.