What Is a CD Ladder?
A CD ladder gives investors more access to their money and allows people to take advantage of rising interest rates or keep a better interest rate. Rather than having your money tied up in one CD, you’ll put your cash in a variety of CDs – from short-term to longer term ones. When the shortest term CD comes due, you might take those dollars, and the interest paid, and reinvest it in a longer term CD. If interest rates rise, then that new deposit will pay you more than the CD that just matured.