How does a CD ladder work?

Split your money into equal parts across different CD terms (e.g., 1-year, 2-year, 3-year, 4-year, 5-year). When each CD matures, reinvest it into the longest term. This way, a CD matures every year, giving you liquidity, while your money earns the higher rates of longer terms.

Is a CD ladder better than a single CD?

Usually yes. A CD ladder provides better liquidity (you always have a CD maturing soon) and reduces reinvestment risk (you are not locked in at one rate for a long term). The blended yield is typically between short and long-term rates.

CD Ladder Calculator — Maximize Returns With Liquidity

Build a CD ladder strategy that gives you the best rates while keeping access to funds every year.

First Year Total Interest

$1,251

First Year Total Interest

$1,251

Amount Per Rung

$10,000

Estimated 5-Year Total Interest

$9,925

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Diagnostic

Your 5-rung CD ladder generates $1,251 in interest in year one.

Compound growth is the cheapest yield in finance — start earlier, contribute more, pay less in fees.

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TAB Bank

TAB Bank 1-Year CD

3.90%

APY

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TAB Bank 1.5-Year CD

3.87%

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TAB Bank

TAB Bank 2-Year CD

3.82%

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Coach Insight

A CD ladder captures higher long-term rates while maintaining regular liquidity. Instead of locking all your money in one CD, you stagger maturities — giving you access to funds and the ability to reinvest at current rates every 6–12 months.