CD Laddering Explained: Build a Flexible Savings Strategy
Want higher returns without locking up all your cash—especially as rates trend downward? CD laddering is the smart way to save. It lets you lock in current rates on longer-term CDs while keeping some funds accessible for flexibility.
What Is CD Laddering?
CD laddering means splitting your savings across multiple Certificates of Deposit (CDs) with different maturity dates. Instead of putting all your money in one long-term CD, you create a “ladder” of CDs that mature at staggered times. This way, you earn competitive rates while keeping some funds accessible.
ZYNLO now offers 6-, 12-, 18-, and 24-month CDs‡, making laddering easier than ever. Here’s why it’s a win:
- Liquidity: You’ll have a CD maturing every few months.
- Rate Protection: Lock in today’s rates while staying flexible for future changes.
- Predictable Growth: Enjoy guaranteed returns with FDIC insurance.
How to Build Your Ladder
Here’s an example:
- $20,000 split into four CDs:
- $5,000 in a 6-month CD
- $5,000 in a 12-month CD
- $5,000 in an 18-month CD
- $5,000 in a 24-month CD
Every six months, one CD matures. You can reinvest at current rates or use the funds for your goals—giving you far more flexibility than putting the entire $20,000 into a single CD. Instead of waiting years for access, you’ll have regular opportunities to adjust your strategy, take advantage of new rates, or cover unexpected expenses without breaking a long-term CD.
Why it’s Smart in a Falling rate Environment
- Lock in Today’s Rates: Longer-term CDs secure higher yields before rates decline.
- Stay Flexible: Shorter-term CDs give you liquidity and options if rates unexpectedly rise.
- Predictable Growth: Even as rates drop, your ladder ensures steady returns.
Ready to Start?
Open your first CD and begin building your ladder now.
‡ZYNLO Certificate of Deposit: There is no minimum deposit required to open this account. The minimum balance to obtain APY on Certificates of Deposit is $0.01. CD rates are fixed for the term of the account. Interest begins to accrue on the business day you deposit non-cash items (for example, checks). A penalty may be imposed for early withdrawal from a CD and is based on the maturity term and could reduce earnings. Transaction Limitations apply. Refer to the Important Terms and Conditions, Certificate of Deposit Accounts – Truth In Savings Disclosure for the early withdrawal penalties and additional information. Must be 18 or older to open an account.
