3 Year Cd Ladder

Get a certificate of deposit with our highest fixed cd rate for a fixed term.

3 year cd ladder.

More about these products high yield cds. If you re looking for a savings option a 3 year cd is just one of them. If you have 3 000 to invest then you might choose to divide the funds equally into three cds with different maturity dates. 1 year 2 year and 5 year the above image is for illustrative purposes.

3 model cd ladders. With a cd ladder you buy cds of varying lengths to mitigate the risks of locking all your money into one long term cd. If you invest 100 000 at 2 4 you ll be earning around 200 a month. Typical lengths offered are 3 6 or 9 months all the way up to 60 months five years and at some online banks you can find 10 year cds.

Let s use 30 000 and build a sample 3 year ladder. Divide the money evenly and open 3 cds with ascending terms 12 months apart. See our picks. Starting a cd ladder is easy.

How we make money. This strategy decreases. A strategy in which an investor divides the amount of money to be invested into equal amounts to certificates of deposit cds with different maturity dates. Our various model ladder strategies offer a blend of higher yields typically only available with longer term cds while investing in shorter term cds that will mature sooner.

See our current rates and start building a model cd ladder. The rates featured on this page are much higher than the national average rate of 0 29 apy for three year cds. Let s say you want to build a three year cd ladder with three rungs. The best three year cd rates can give a boost to short term savings.

What are the alternatives to a 3 year cd. In this case if you are 3 years into a 5 year cd and a compellingly higher rate is available you can withdraw the funds and open a new 5 year cd with only a 2 month penalty. A 3 year cd also can be used as part of a cd ladder. Access to a portion of your funds every 12 months as your cds mature.

Build a cd ladder to grow your savings. The cd ladder illustrated below was calculated using your initial deposit amount and today s rates. It s important to remember that rates are subject to change over time.