How Do Cd Ladders Work

CD ladders provide a way for investors to buy and sell CDs (certificates of deposit) over time to get a better return on their investment. They work by allowing the investor to purchase a series of CDs with staggered maturity dates. This way, the investor can take advantage of rising interest rates without having to cash in their CDs and reinvest at a lower rate.

The way a CD ladder works is by allowing the investor to purchase a series of CDs with staggered maturity dates. For example, an investor might purchase a 1-year, 2-year, 3-year, and 4-year CD. This …

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What Is Cd Laddering

Cd laddering is a financial investment technique that is used to protect an investor’s principal while maximizing the potential for earning a higher rate of return on the investment. The technique is also known as a stepped-up investment strategy.

With cd laddering, an investor divides their money among several certificates of deposit (cd) with different maturity dates. The idea is that as each cd matures, the investor can reinvest the money in a new cd with a higher interest rate. This will help to ensure that the investor always has access to a higher rate of return on their money, …

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