Maximize your savings with a CD ladder

What moments will your savings make possible? Quiet mornings spent on the deck of your new beach house? A bucket-list trip to the heights of Machu Picchu?

Whatever you’re saving for, certificates of deposit (CDs)—and by extension CD ladders—can be a smart investment. CDs traditionally offer the highest interest rates of government-insured savings products. Simply put, a CD ladder means investing in a series of CDs with escalating terms that keep your interest climbing.

Example of a CD ladder

  • Open five CDs ranging from 1 year to 5 years
  • When the 1-year CD matures, re-invest it into a 5-year CD
  • When the 2-year CD matures, re-invest it into a 5-year CD
  • Continue re-investing each original CD into a 5-year CD
Each year, when a CD matures, you can re-invest the funds, or use them to create special moments. See how your interest adds up with a CD ladder calculator.

Benefits of a CD Ladder

Control: Decide how much money to invest in each CD and the timeframe for each CD based on your financial strategy and needs.

Accessibility: Cash will be available at frequent, set intervals.

Responsiveness: Take advantage of short-term interest rates by reinvesting proceeds from maturing CDs into newer ones with higher rates.

Safety: If interest rates fall, a portion of your money will continue to be invested in long-term CDs that deliver higher rates.

Typically, the longer your CD term, the higher interest it will pay. While it’s best to let your CD fully mature, you can cash out sooner for a small penalty—usually 6-12 months’ worth of interest.
Bread Savings is committed to maximizing your savings and every moment they make possible by offering a range of CDs and CD laddering options. Create your ladder now.