What is a CD Ladder and why do American investors use it?

A CD Ladder is an investment strategy where you divide your total cash equally across multiple certificates of deposit with staggered maturity dates (e.g. 1, 2, 3, 4, and 5 years). This allows you to earn higher long-term APYs while freeing up cash each year without early withdrawal penalties.

What happens when the first CD in the ladder matures?

When your 1-year CD matures, you can either take the cash penalty-free or reinvest it into a new 5-year CD. If you roll it over each year, you eventually hold a portfolio where all your money earns the top 5-year CD rate, with 20% of your total principal maturing every 12 months.

CD Tools: Standard CD Compare CDs Early Withdrawal CD Ladder Maturity Date

CD Ladder Calculator

Structure your savings into a rolling CD ladder. Capture peak multi-year yields while unlocking cash liquidity every 12 months with zero penalty risk.

Ladder Portfolio Settings

Total Capital to Invest

Capital is split evenly across all ladder rungs.

Ladder Structure

Estimated APY by Term

1-Year CD APY

2-Year CD APY

3-Year CD APY

4-Year CD APY

5-Year CD APY

Total Ladder Earnings

+$4,235.80

Blended Portfolio APY

4.57%

Annual Free Liquidity

$5,000 / yr

Per-CD Deposit

$5,000.00

Total Portfolio Value

$29,235.80

Your CD Ladder Timeline

Staggered Annual Payouts

Calendar Tracker Continue Your Analysis

Track Your Exact CD Maturity & Grace Period

Know the precise calendar date your CD matures and set automated reminders for your bank's 7 to 10-day penalty-free grace period.

Compare Standalone CD Rates Calculate Maturity Date

FDIC

Standard US Banking Protection Insured up to $250,000

CDs issued by FDIC-insured member banks or NCUA-insured credit unions guarantee your principal and accrued interest up to $250,000 per depositor. Calculations assume fixed APY rates held to maturity.