A CD ladder splits your money across CDs of staggered lengths, so one matures every year while the rest keep earning locked-in rates. Enter your total and today's rates to see the full maturity schedule and interest.
Maintained by TheFinanceSection · Methods and corrections
Per CD deposit
$5,000
5 equal rungs
Total interest earned
$3,355
if all rungs held to maturity
Ladder value at end
$28,355
after 5 years
| Rung | Matures in | APY | Deposit | Value at maturity | Interest |
|---|---|---|---|---|---|
| #1 | 1 year | 4.50% | $5,000 | $5,225 | $225 |
| #2 | 2 years | 4.40% | $5,000 | $5,450 | $450 |
| #3 | 3 years | 4.30% | $5,000 | $5,673 | $673 |
| #4 | 4 years | 4.20% | $5,000 | $5,894 | $894 |
| #5 | 5 years | 4.10% | $5,000 | $6,113 | $1,113 |
Assumes annual compounding and each rung held to maturity. In a real ladder, when the 1-year CD matures you reinvest it into a new long-term CD, so one rung matures every year while everything earns long-term rates.
It divides your deposit into equal "rungs" — a 1-year CD, a 2-year CD, and so on up to your chosen ladder length — applies the APY you enter for each term, and shows what each rung is worth at maturity, plus your total interest across the whole ladder.
One long CD pays the best rate but locks up everything; all short CDs stay liquid but earn less. A ladder gives you both: a rung matures every year (cash you can spend or reinvest without penalty), while most of your money earns longer-term rates. Once the ladder is rolling, every maturing rung gets reinvested into a new long-term CD at whatever rates are then — which also smooths out interest-rate luck.
Confirm each CD is within FDIC/NCUA limits (our FDIC insurance calculator helps), check what the early withdrawal penalty would cost if you had to break a rung, and compare the ladder against simply staying in savings with our CD vs savings calculator.
A strategy where you split a deposit across several CDs with staggered maturity dates — for example $5,000 each into 1-, 2-, 3-, 4-, and 5-year CDs. Each year one CD matures, giving you penalty-free access to part of your money, and you reinvest it into a new 5-year CD to keep the ladder going.
Whatever meets your bank's minimum per CD — often $500 to $1,000 per rung. A five-rung ladder can start with as little as $2,500 at many banks and credit unions.
Usually yes — that's when laddering shines, because your longer rungs have locked in today's higher rates while savings-account APYs drift down. When rates are rising, shorter ladders let you reinvest sooner at better rates.
Yes, CDs at FDIC-insured banks (and share certificates at NCUA-insured credit unions) are covered up to $250,000 per depositor, per institution, per ownership category — the ladder structure doesn't change that.
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