CD Ladder
Secure Steps for Your Savings Growth
Interested in long-term, guaranteed, and predictable growth – especially during volatile times in other financial markets? Consider the buy and hold strategy of a CD ladder today!
CD Ladder
Secure Steps for Your Savings Growth
Interested in long-term, guaranteed, and predictable growth – especially during volatile times in other financial markets? Consider the buy and hold strategy of a CD ladder today!
Set Up Your CD Ladder Savings Strategy Today!
Simply put, an NDBT CD Ladder is a savings strategy designed to ensure long-term growth that allows you to effectively balance the need for liquidity along with the opportunity to earn a higher rate of return. The ladder is created by spreading a sum of money across multiple CDs with different maturity dates.
Benefits of a CD Ladder
- Higher Interest Earnings
- Protection from Interest Rate Fluctuations
- Flexible Planning for Your Goals
- Low-Risk Investment Strategy
- Reduced Liquidity Risk
Get Started Today
Setup your CD Ladder by scheduling an appointment, or learn more by contacting an NDBT banker today. Customized alerts can be placed in online banking to notify you when CD’s are about to mature.
How Does a CD Ladder Work?
Example
Suppose you have $5,000 to invest. Instead of putting it all into a single 60-month CD, you could divide it into five $1,000 CDs with terms of 12 through 60 months:
- $1,000 in a 12-month CD
- $1,000 in an 18-month CD
- $1,000 in a 24-month CD
- $1,000 in a 36-month CD
- $1,000 in a 60-month CD
After the first year, your 12-month CD matures. You can then reinvest that $1,000 into a new 60-month CD. As time passes, another CD matures, giving you access to funds or the opportunity to reinvest, thus continuing the ladder. Soon, you will have CDs maturing at regular intervals, earning you higher interest than a basic savings account – while still having access to cash at each interval.
