Money Monday: Quick facts about laddered CDs
Here are quick facts about laddered CDs:
- Rising interest rates make laddered CDs more attractive
- CD Pays Fixed Interest for Fixed Time:
- 6-12 Months
- 1-5 Years
- Bigger You Buy the Higher the Interest Rate
- Buy through Bank or CU Which Can Automatically Reinvest
- Safer Instrument B/C it Reduces Market Risk
- Buy 1 Long Term CD Your Money is Locked Away & You wait for return
- Laddering CD’s: Buying One Every 3 Mos. Over A Couple of Years
- Opportunity to Reinvest in Another CD at a higher Interest Rate
- Should interest rates go down you still enjoy the locked in higher rates
- In An Emergency Provides Cash because you always have one CD Maturing.
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