How CD Laddering Works

Brought to you by GoBankingRates How CD Laddering Works When interest rates are low, CD laddering gives you a long-term fix for the short-term bumps Total Return on Investment (Dollars) Investment $10,000 (Five $2,000 CDs) YEAR SEVEN 1500 First reinvested CD matures ($2,410) 1000 YEAR SIX First 5-year CD matures ($2,375) Reinvest as 5-year CD at 3.5% 500 YEAR FIVE 1 3 4 5 6 7 4-year CD matures ($2,250) Reinvest as 5-year CD at 3.5% End of Year Advantages of CD Laddering YEAR FOUR • Higher rates of return than savings accounts • Never more than a year away from at least a portion of your money • Not all your money is invested at the same low 3-year CD matures ($2,150) Reinvest as 5-year CD at 3.5% rate • Invest in an economic slump to get higher interest rates as economy improves • Long time laddered investments have higher yields than shorter terms • Can set up shorter term CDs to have more YEAR THREE 2-year CD matures ($2,080) Reinvest as 5-year CD at 3.5% frequent access to your money • Creates a safely investing chunk of your portfolio which can continue to gain interest • Earn more with laddering than by re-investing a YEAR TWO 1-year CD matures ($2,030) Reinvest as 5-year CD at 3.5% one year CD continually through higher long term rates Invest $2,000 in each CD (I-year at 1.5%, 2-years at 2.0%, 3-years at 2.5%, 4-years at 3.0%, 5-years at 3.5%) YEAR ONE Brought to you by GoBankingRates How CD Laddering Works When interest rates are low, CD laddering gives you a long-term fix for the short-term bumps Total Return on Investment (Dollars) Investment $10,000 (Five $2,000 CDs) YEAR SEVEN 1500 First reinvested CD matures ($2,410) 1000 YEAR SIX First 5-year CD matures ($2,375) Reinvest as 5-year CD at 3.5% 500 YEAR FIVE 1 3 4 5 6 7 4-year CD matures ($2,250) Reinvest as 5-year CD at 3.5% End of Year Advantages of CD Laddering YEAR FOUR • Higher rates of return than savings accounts • Never more than a year away from at least a portion of your money • Not all your money is invested at the same low 3-year CD matures ($2,150) Reinvest as 5-year CD at 3.5% rate • Invest in an economic slump to get higher interest rates as economy improves • Long time laddered investments have higher yields than shorter terms • Can set up shorter term CDs to have more YEAR THREE 2-year CD matures ($2,080) Reinvest as 5-year CD at 3.5% frequent access to your money • Creates a safely investing chunk of your portfolio which can continue to gain interest • Earn more with laddering than by re-investing a YEAR TWO 1-year CD matures ($2,030) Reinvest as 5-year CD at 3.5% one year CD continually through higher long term rates Invest $2,000 in each CD (I-year at 1.5%, 2-years at 2.0%, 3-years at 2.5%, 4-years at 3.0%, 5-years at 3.5%) YEAR ONE Brought to you by GoBankingRates How CD Laddering Works When interest rates are low, CD laddering gives you a long-term fix for the short-term bumps Total Return on Investment (Dollars) Investment $10,000 (Five $2,000 CDs) YEAR SEVEN 1500 First reinvested CD matures ($2,410) 1000 YEAR SIX First 5-year CD matures ($2,375) Reinvest as 5-year CD at 3.5% 500 YEAR FIVE 1 3 4 5 6 7 4-year CD matures ($2,250) Reinvest as 5-year CD at 3.5% End of Year Advantages of CD Laddering YEAR FOUR • Higher rates of return than savings accounts • Never more than a year away from at least a portion of your money • Not all your money is invested at the same low 3-year CD matures ($2,150) Reinvest as 5-year CD at 3.5% rate • Invest in an economic slump to get higher interest rates as economy improves • Long time laddered investments have higher yields than shorter terms • Can set up shorter term CDs to have more YEAR THREE 2-year CD matures ($2,080) Reinvest as 5-year CD at 3.5% frequent access to your money • Creates a safely investing chunk of your portfolio which can continue to gain interest • Earn more with laddering than by re-investing a YEAR TWO 1-year CD matures ($2,030) Reinvest as 5-year CD at 3.5% one year CD continually through higher long term rates Invest $2,000 in each CD (I-year at 1.5%, 2-years at 2.0%, 3-years at 2.5%, 4-years at 3.0%, 5-years at 3.5%) YEAR ONE Brought to you by GoBankingRates How CD Laddering Works When interest rates are low, CD laddering gives you a long-term fix for the short-term bumps Total Return on Investment (Dollars) Investment $10,000 (Five $2,000 CDs) YEAR SEVEN 1500 First reinvested CD matures ($2,410) 1000 YEAR SIX First 5-year CD matures ($2,375) Reinvest as 5-year CD at 3.5% 500 YEAR FIVE 1 3 4 5 6 7 4-year CD matures ($2,250) Reinvest as 5-year CD at 3.5% End of Year Advantages of CD Laddering YEAR FOUR • Higher rates of return than savings accounts • Never more than a year away from at least a portion of your money • Not all your money is invested at the same low 3-year CD matures ($2,150) Reinvest as 5-year CD at 3.5% rate • Invest in an economic slump to get higher interest rates as economy improves • Long time laddered investments have higher yields than shorter terms • Can set up shorter term CDs to have more YEAR THREE 2-year CD matures ($2,080) Reinvest as 5-year CD at 3.5% frequent access to your money • Creates a safely investing chunk of your portfolio which can continue to gain interest • Earn more with laddering than by re-investing a YEAR TWO 1-year CD matures ($2,030) Reinvest as 5-year CD at 3.5% one year CD continually through higher long term rates Invest $2,000 in each CD (I-year at 1.5%, 2-years at 2.0%, 3-years at 2.5%, 4-years at 3.0%, 5-years at 3.5%) YEAR ONE Brought to you by GoBankingRates How CD Laddering Works When interest rates are low, CD laddering gives you a long-term fix for the short-term bumps Total Return on Investment (Dollars) Investment $10,000 (Five $2,000 CDs) YEAR SEVEN 1500 First reinvested CD matures ($2,410) 1000 YEAR SIX First 5-year CD matures ($2,375) Reinvest as 5-year CD at 3.5% 500 YEAR FIVE 1 3 4 5 6 7 4-year CD matures ($2,250) Reinvest as 5-year CD at 3.5% End of Year Advantages of CD Laddering YEAR FOUR • Higher rates of return than savings accounts • Never more than a year away from at least a portion of your money • Not all your money is invested at the same low 3-year CD matures ($2,150) Reinvest as 5-year CD at 3.5% rate • Invest in an economic slump to get higher interest rates as economy improves • Long time laddered investments have higher yields than shorter terms • Can set up shorter term CDs to have more YEAR THREE 2-year CD matures ($2,080) Reinvest as 5-year CD at 3.5% frequent access to your money • Creates a safely investing chunk of your portfolio which can continue to gain interest • Earn more with laddering than by re-investing a YEAR TWO 1-year CD matures ($2,030) Reinvest as 5-year CD at 3.5% one year CD continually through higher long term rates Invest $2,000 in each CD (I-year at 1.5%, 2-years at 2.0%, 3-years at 2.5%, 4-years at 3.0%, 5-years at 3.5%) YEAR ONE Brought to you by GoBankingRates How CD Laddering Works When interest rates are low, CD laddering gives you a long-term fix for the short-term bumps Total Return on Investment (Dollars) Investment $10,000 (Five $2,000 CDs) YEAR SEVEN 1500 First reinvested CD matures ($2,410) 1000 YEAR SIX First 5-year CD matures ($2,375) Reinvest as 5-year CD at 3.5% 500 YEAR FIVE 1 3 4 5 6 7 4-year CD matures ($2,250) Reinvest as 5-year CD at 3.5% End of Year Advantages of CD Laddering YEAR FOUR • Higher rates of return than savings accounts • Never more than a year away from at least a portion of your money • Not all your money is invested at the same low 3-year CD matures ($2,150) Reinvest as 5-year CD at 3.5% rate • Invest in an economic slump to get higher interest rates as economy improves • Long time laddered investments have higher yields than shorter terms • Can set up shorter term CDs to have more YEAR THREE 2-year CD matures ($2,080) Reinvest as 5-year CD at 3.5% frequent access to your money • Creates a safely investing chunk of your portfolio which can continue to gain interest • Earn more with laddering than by re-investing a YEAR TWO 1-year CD matures ($2,030) Reinvest as 5-year CD at 3.5% one year CD continually through higher long term rates Invest $2,000 in each CD (I-year at 1.5%, 2-years at 2.0%, 3-years at 2.5%, 4-years at 3.0%, 5-years at 3.5%) YEAR ONE