The Beginner’s Guide To Building CD Ladders

​As interest rates in the broader market rise, banks are starting to offer decent rates on their Certificate of Deposit Accounts (CDs). If you’re a saver who wants to earn more than your checking account offers, consider investing in a CD ladder.A CD ladder won’t make you rich, but it’s a useful tool for mid-term savings goal and investment withdrawals. This guide explains how to create a CD ladder that fits your goals.Check out this quick guide to the best bank CD rates right now >>

A Certificate of Deposit (CD) entitles the account owner to a set interest rate for a given period of time. As the account owner, you must keep your money in the account for the set time, or you’ll face an early withdrawal penalty.Withdrawal penalties typically range from 1 month of interest to 12 months of interest. While it’s wise to hold your CDs to maturity, you won’t be devastated if you have to withdraw early in the event of an emergency or opportunity.​ 

Have you ever thought about investing in a CD? Why or why not?​

Written by Investors Wallets

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