Tools · CD Ladder
CD ladder builder.
Stagger maturities, smooth access.
A CD ladder splits a lump sum across CDs with different maturity dates so you have regular access to funds while earning higher yields than a single savings account.
US-only. CDs (Certificates of Deposit) are FDICFederal Deposit Insurance Corporation (FDIC)The US agency that insures bank deposits up to $250,000 per depositor if a bank fails.-insured bank products in the US.
WORKED EXAMPLE
$20,000 split into 4 equal rungs at typical rates. $5,000 at 3 months at 4.5%: matures in 3 months, earns about $56. $5,000 at 6 months at 4.8%: matures in 6 months, earns about $120. $5,000 at 9 months at 4.9%: matures in 9 months, earns about $184. $5,000 at 12 months at 5.0%: matures in 12 months, earns about $250. Total interest: about $610.
LADDER SETUP
PER-RUNG RATES verify×DON'T TRUST, VERIFYClaim: CD rates change frequently. Defaults are approximate.Verify at: Bankrate CD rates ↗ · NerdWallet best CDs ↗Online banks and credit unions typically offer higher rates than traditional banks.
YOUR LADDER
| RUNG | AMOUNT | TERM | APYAnnual Percentage Yield (APY)The real return on savings after the bank pays interest on top of interest. A 5% APY savings account turns $1,000 into $1,050 after one year.Full definition | INTEREST |
|---|
SUMMARY
What this tool assumes
- Equal allocation per rung (totalAmount / rungs).
- Interest = principal × APY × (termMonths / 12). This is simple-interest approximation; CDs typically use compound interestcompound interestEarning interest on your interest. Your returns reinvested to earn even more returns over time.Full definition. Actual maturity values may be slightly higher than shown for terms over 6 months.
- Default term progression: 3, 6, 9, 12, 18, 24, 36 months for rungs 1 through 7.
- CD early-withdrawal penalties are not modeled. Read your bank's CD terms.
- FDIC insurance limit: $250,000 per depositor per bank. SpreadspreadThe difference between the market price of Bitcoin and what an exchange actually charges you, a hidden cost on top of stated transaction fees.Full definition larger ladders across multiple banks.