When the first CD matures, you can reinvest it (and any earned interest) into a new CD - it doesn’t have to be the same term. With a CD ladder, you divide your cash across multiple CDs with different maturity dates. Here’s how it works:Ī CD ladder is a savings strategy made up of different CDs at varying term lengths. With a CD ladder, you can benefit from the higher rates long-term CDs generally offer while also enjoying more frequent access to your funds. If you don’t like the idea of locking your money into a long-term CD, a CD ladder provides somewhat of an in-between option.
