Save Smarter With CD Laddering
Level-up your savings with this simple strategy! It’s called Certificate of Deposit (CD) Laddering, and it is a great way to take advantage of higher rates, traditionally associated with longer-term CDs while maintaining some liquidity. Here’s how it works:
- Open three or more CDs with different maturity dates at the same time, such as a 1, 2, and 3-year CD.
- At the end of each year re-invest your matured CD into a new 3-year CD, allowing you to benefit from higher-rate 3-year CDs rather than 1-year CDs.
- Continue to re-invest maturing CDs into a new 3-year CD. This laddering strategy will enable you to have liquidity and flexibility when you need it since one or more CDs will always be approaching maturity.
All it takes is $500 to start investing in a Viriva Share Certificate of Deposit. Have questions about our certificates or certificate rates? Contact Us today!
For additional resources check out Balance, our financial education partner.