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What is a CD Ladder?

What is a CD Ladder?

Posted On: October 26, 2022 by Falcon National Bank in: Invest your Money | Investment Banking, Manage your Business | Business Banking, Your Financial Life | Personal Banking

Savings rates are on the rise, it’s a great time to develop a savings growth strategy. We frequently discuss savings rates with our customers.  Through most of the last decade savers were forced to settle for lower yields on deposits, stuck in a low-rate environment.  Even those fortunate to lock in higher returns during the brief market up-ticks grew weary of the feast or famine situation.  There is a simple diversification method to increase your savings returns over the long term.  Remember the old saying “don’t put all your eggs in one basket.”  A CD ladder is as simple as that. A CD ladder allows savers to decrease their interest rate risk and balance their savings rate of return as the rate environment changes.  This method can be particularly effective during periods of extreme rate volatility (hint-hint).  It also provides the combined advantages of, generally, higher rates of return and regular funds availability. 

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