How does a CD ladder work?

Split your money into equal parts across different CD terms (e.g., 1-year, 2-year, 3-year, 4-year, 5-year). When each CD matures, reinvest it into the longest term. This way, a CD matures every year, giving you liquidity, while your money earns the higher rates of longer terms.

Is a CD ladder better than a single CD?

Usually yes. A CD ladder provides better liquidity (you always have a CD maturing soon) and reduces reinvestment risk (you are not locked in at one rate for a long term). The blended yield is typically between short and long-term rates.

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Banking & SavingsSavings & Cash Flow

CD Ladder Calculator — Maximize Returns With Liquidity

Build a CD ladder strategy that gives you the best rates while keeping access to funds every year.

CD Ladder Details

Total Amount to Invest$50,000

Number of CD Rungs5

1-Year CD Rate (APY %)4.5%

5-Year CD Rate (APY %)4.1%

Results

Live

First Year Total Interest

$1,350

Amount Per Rung$10,000

Estimated 5-Year Total Interest$10,750

Effective Blended Rate4.3%

Amount Per Rung$10,000

First Year Total Interest$1,350

Estimated 5-Year Total Interest$10,750

How to use

Change one assumption at a time to see what moves the answer most.

Frequently Asked Questions

Everything you need to know.

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Why This Matters

A CD ladder captures higher long-term rates while maintaining regular liquidity. Instead of locking all your money in one CD, you stagger maturities — giving you access to funds and the ability to reinvest at current rates every 6–12 months.

How to Use It

1Enter your total amount to invest
2Set the number of CD rungs (typically 3–5)
3Enter rates for each term
4See your blended yield and maturity schedule

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