A CD ladder splits your savings across certificates of deposit with staggered terms, so one CD matures every year. You earn longer-term rates on most of your money while keeping regular access to part of it. Enter an amount below to see your maturity schedule, interest and how a ladder compares with a single CD or a savings account.
CD Ladder Calculator
Build a CD ladder, see maturity dates and compare the interest with a single CD or savings.
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How a CD ladder works
Say you have $25,000 and build a five-rung ladder. You put $5,000 each into a 1-, 2-, 3-, 4- and 5-year CD. Next year, the 1-year CD matures. If you don’t need the money, you reinvest it in a new 5-year CD. After four years, every rung is a 5-year CD earning long-term rates, and one still matures every year.
Pros and cons of a CD ladder
| Pros | Cons |
|---|---|
| Locks in rates for part of your money if rates fall | Early withdrawal penalties if you need cash before a rung matures |
| Regular access to some of your money every year | Long-term CDs don’t always pay much more than short-term ones |
| FDIC or NCUA insurance up to $250,000 per depositor, per bank, per ownership category | Takes a little tracking to roll over each CD |
| Predictable, guaranteed interest | Returns may trail inflation or stocks over long periods |
Tips for building your ladder
- Shop each rung separately. The best 1-year rate and the best 5-year rate are often at different banks.
- Check early withdrawal penalties. They range from a few months to a year or more of interest.
- Consider no-penalty CDs or a high-yield savings account for your emergency fund. A ladder works best for money you won’t need on short notice.
- Stay under the insurance limit at each bank. Our FDIC coverage calculator can check.
- Set reminders. Many CDs renew automatically at the bank’s current rate during a short grace period, often 7 to 10 days.
Find today’s top rates on our best CD rates list, or compare with the best high-yield savings accounts. For a single CD, try our savings calculators.
Frequently asked questions
Is a CD ladder a good idea right now?
A ladder can make sense when you want guaranteed returns and worry that rates will fall, since it locks in today’s rates on part of your money while still giving you yearly access.
How many rungs should a CD ladder have?
Three to five is common. More rungs mean more frequent access to your money; longer ladders usually earn more.
How much money do I need to start a CD ladder?
Many online banks have low or no minimum deposits, so you can start with a few thousand dollars. Some CDs require $500 to $1,000 each.
Is CD interest taxable?
Yes. CD interest is taxed as ordinary income in the year it’s credited, even if you don’t withdraw it, unless the CD is held in an IRA.
Default rates reflect top nationally available APYs on our best CD rates list as of Nov. 1, 2026, and change often. Results are estimates assuming annual compounding and constant rates. This page is for educational purposes and isn’t financial advice.