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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