If you’re looking for a way to grow your savings while keeping regular access to your money, a CD Ladder might be the perfect fit. At People Driven Credit Union, we know members want both competitive returns and peace of mind, and a CD Ladder is a simple, proven strategy to achieve both.
What is a CD Ladder, and how do you build a CD Ladder?
A CD (Certificate of Deposit) Ladder is a savings strategy where you divide your money into several CDs with different maturity dates. This approach helps balance two goals:
- Earning higher interest rates on longer-term CDs
- Maintaining liquidity by having money become available at regular intervals
Think of it like having several rungs on a ladder each one represents a CD that matures at a different time, giving you access to funds without locking up everything all at once.
How a CD Ladder Works
- Divide your investment. Let’s say you have $10,000. You might split it into five equal parts of $2,000 each.
- Purchase CDs with staggered maturities. For example: one 1-year CD, one 2-year, one 3-year, one 4-year, and one 5-year.
- Reinvest as CDs mature. When the 1-year CD matures, reinvest that amount into a new 5-year CD. Repeat each year as another CD comes due.
Over time, you’ll end up with a ladder of 5-year CDs, each maturing annually. That means you’ll always have one coming due each year, keeping your savings flexible.
Benefits of a CD Ladder
- Higher earnings: Take advantage of longer-term CD rates without locking up all your money for years.
- Regular access to funds: Each year, a portion of your money becomes available—no early withdrawal penalties needed.
- Protection from rate changes: If interest rates rise, you can reinvest maturing CDs at higher rates.
- Predictable returns: CDs offer low risk and provide steady, guaranteed interest.
Example: A $10,000 Five-Year Ladder
- Year 1: Invest $2,000 in a 1-year CD, $2,000 in a 2-year CD, $2,000 in a 3-year CD, $2,000 in a 4-year CD, and $2,000 in a 5-year CD.
- Year 2: Your 1-year CD matures—reinvest it in a new 5-year CD.
- Year 3: Your 2-year CD matures—reinvest it in another 5-year CD.
- Continue the process until every rung of your ladder is a 5-year CD, maturing one after another.
Why Build a CD Ladder with PDCU?
At People Driven Credit Union, we offer competitive CD rates and flexible terms, so you can create a ladder that fits your savings goals. Whether you’re planning for a child’s education, building a long-term emergency fund, or simply looking for steady growth, a CD Ladder can give you both structure and security.
PDCU’s Certificate of Deposit Rates
|
Term |
Minimum Balance |
Dividend Rate |
APY² |
| CD Special - 9 mth | $500 | 3.941% | 4.00% |
| CD Special - 16 mth | $500 | 3.844% | 3.90% |
| 6 Month | $500 | 2.624% | 2.65% |
| 6 Month Jumbo | $25,000 | 2.673% | 2.70% |
| 1 Year | $500 | 2.722% | 2.75% |
| 1 Year Jumbo | $25,000 | 2.771% | 2.80% |
| 1 Yr SuperJumbo | $100,000 | 2.820% | 2.85% |
| 1 Year Save to Win | $25 | 2.673% | 2.70% |
| 1 Year Youth | $25 | 4.426% | 4.50% |
| 2 Year | $500 | 2.231% | 2.25% |
| 2 Year Jumbo | $25,000 | 2.280% | 2.30% |
| 3 Year | $500 | 2.231% | 2.25% |
| 3 Year Jumbo | $25,000 | 2.280% | 2.30% |
| 4 Year | $500 | 2.477% | 2.50% |
| 4 Year Jumbo | $25,000 | 2.526% | 2.55% |
| 5 Year | $500 | 2.477% | 2.50% |
| 5 Year Jumbo | $25,000 | 2.526% | 2.55% |
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Rates Effective as of: ²APY = Annual Percentage Yield. APY is a standardized measure of the total interest earned on a deposit account over one year, based on the interest rate and the frequency of compounding. APY assumes that interest remains on deposit until maturity. Early withdrawals and applicable fees may reduce earnings. Rates are effective as of and are subject to change at any time without notice. Membership and eligibility requirements apply. Federally insured by NCUA. |
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Ready to start your CD Ladder?
Open your first CD online, visit one of our branch locations, or contact us to learn more and set up your ladder today.
Disclosures
APY = Annual Percentage Yield. Rates are accurate as of the current date and are subject to change without notice. Penalties may apply for early withdrawals; membership is required. Federally insured by NCUA.
John Scharff is the Digital Marketing Lead at People Driven Credit Union, where he helps create clear, practical financial content for members and the communities PDCU serves. He focuses on making financial topics easier to understand, from loans and savings accounts to digital banking, fraud prevention, and everyday money management.
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