CD Ladder Builder
Example: Total amount to ladder: 20000 $ · 3-month CD APY: 4.75 % · 6-month CD APY: 5 % · 12-month CD APY: 5.2 % · 24-month CD APY: 5.1 % · HYSA APY (benchmark): 5 %
| Total ladder interest earned | $954 |
| HYSA interest (1-yr benchmark) | $1,000 |
| Ladder advantage over HYSA | $-46 |
| Weighted average ladder APY | 3.82% |
| Amount per rung | $5,000 |
Worked example
A $20,000 ladder with $5,000 in each rung earns $594 in interest across all four CDs over their respective terms. A HYSA at 5% earns $1,000 over one full year on the same $20,000 — but the ladder gives access to $5,000 every 3 months rather than locking everything for a year, offering liquidity at a modest interest trade-off.
Frequently asked questions
What happens when a CD rung matures?
You have a short grace period (typically 7–10 days) to withdraw or reinvest without penalty. In a rolling ladder you reinvest into the longest rung to maintain the structure. If rates have changed, you can shift the mix — for example, extending into a 36-month CD if long-term rates rise.
Are CDs FDIC insured?
Yes. CDs at FDIC-member banks are insured up to $250,000 per depositor per ownership category — the same protection as a regular savings account. For amounts above $250,000, spreading across multiple FDIC institutions or ownership categories (individual, joint, IRA) extends coverage.
What is the early withdrawal penalty on CDs?
Penalties vary by institution and term — typically 60–150 days of interest for short-term CDs and 150–365 days for longer terms. Compare the penalty to your expected gain before choosing a term. Some 'no-penalty CDs' waive this in exchange for a slightly lower rate.
When does a HYSA beat a CD ladder?
When rates are rising, a HYSA benefits immediately while CD rungs are locked in. When rates are falling or stable, the ladder often earns more by locking in today's higher long-term rates. Varies by the rate environment — this tool shows the current snapshot comparison.