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How a CD Ladder can Help Your Savings Grow

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If you’re saving for a long-term goal, such as the down payment on a house or a child’s college tuition, setting up a CD ladder could help you reach your goals.

What is a CD ladder?

Setting up a CD ladder is easy. Rather than depositing money in a single CD, you deposit money in several CDs with staggered maturity dates. When the CDs with short-term dates mature, you can reinvest that money in another CD to extend the ladder until you have met your savings goal. Click here to view an example of how to set up a CD ladder.

What are the benefits of a CD ladder? explains that investing in a CD ladder may help you get a better return on your money versus depositing it all in one CD. The benefits of a CD ladder include:

  • Access to cash at different intervals. Because you’re investing in several different CDs with short-term to long-term maturity rates, you’ll have access to cash sooner than if you deposited all your money in one long-term CD. When each CD matures, you can choose to reinvest it in another CD or spend it as you wish.

  • You can take advantage of future interest rates. If interest rates rise, you can take advantage of them by reinvesting your money when your next short-term CD matures, rather than having to wait for a long-term maturity date.

  • A CD ladder gives you more options. Investing your money across multiple CDs allows you to choose between several different interest rates. You can also adjust your ladder strategy as your CDs begin to mature, in case you find you need access to your money earlier than you had planned.
Capitol Federal® offers a range of short-term and long-term CDs to help you build a CD ladder and save for your goals. Click here to view our current CD interest rates.

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Categories: Strategies for Saving


Rhonda Calhoun

I would like to recommend adding a branch location to the North Topeka Dillion's store at 800 NW 25th, Topeka, Ks. There a several major banks in that area, but no Cap Feds. I notice that both Lawrence, Ks and the KC area have branches in the grocery stores, yet Topeka is the home office and doesn't have one at all. I am now retired and the current Topeka locations are no longer convenient. Please consider the north Topeka Dillion's store as a branch office. Thanks!

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