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Certificates of Deposit (CD) Laddering

What is CD laddering?

CD laddering is a smart strategy that spreads your savings across multiple Certificates of Deposit (CDs) with staggered maturity dates. Instead of locking all your money into one long-term CD, you build a “ladder” that gives you regular access to your funds while earning competitive rates.

It is important to note that withdrawing CDs early before they mature is often likely to result in both interest that may be lost and fees that may be charged to the CD holder. Ideally, a CD is for funds that do not need to be available for a period of time ranging from several months to a few years.

Why use a CD ladder?

Maximize Earnings

Longer-term CDs may offer higher rates. With a ladder, you could take advantage of those higher rates over time.

Steady Access to Funds

As each CD matures, you can choose to reinvest or use the money to maintain savings and have cash available.

Adapt to Rate Changes

If interest rates go up, you can reinvest maturing CDs at the new higher rate. If rates go down, your existing CDs will still earn a stable return.

How to build a CD ladder

Let’s walk through a sample strategy using Delta Community CD terms:

Initial ladder opening date:

Open five CDs
- Two 12-month CDs
- One 24-month CD
- One 36-month CD
- One 60-month CD

Ongoing savings strategy:

Year One: Both 12-month CDs mature - reinvest one into a 60-month CD and the other into a 36-month CD (setting up a future 60-month CD purchase on year 4).
Year Two: The 24-month CD matures - reinvest into a 60-month CD.
Year Three: The 36-month CD matures - reinvest into a 60-month CD.
Year Four: The second 12-month CD that was reinvested into a 36-month CD now matures - reinvest into a 60-month CD.

By year four, you’re holding five 60-month CDs, each set to mature annually. Now you simply renew each one at maturity to keep your ladder going—and your savings working for you.

Here’s what it would look like

What to keep in mind

Plan for liquidity

CDs are best for funds you don’t need right away. Make sure your ladder fits your financial timeline.

Early withdrawal penalties

Withdrawing CDs early before they mature may come with fees and lost interest. Laddering helps reduce that risk by giving you regular access to maturing funds.

Interest rate changes

CD laddering helps balance the risk of rate fluctuations, but no strategy can guarantee maximum interest rate returns in every market.

A well-structured CD ladder helps you earn more while maintaining access to your funds at regular intervals. It’s a strategy that balances growth, flexibility and peace of mind.

Want to see how CD laddering could work for you? Explore our CD Ladder Calculator or stop by a branch to discuss CD and savings options with a team member.

Certificates of Deposit (CD) Laddering

Why use a CD ladder?

Maximize Earnings

Steady Access to Funds

Adapt to Rate Changes

How to build a CD ladder

Here’s what it would look like

What to keep in mind

Plan for liquidity

Early withdrawal penalties

Interest rate changes

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EHL

Equal Housing Lender

NCUA

National Credit Union Administration, a U.S. Government Agency