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 …