CD Laddering: How it Works

CD Laddering: How it Works


CD Laddering Getting The Most From Your Certificates Of Deposit Or Cds – Can Require A Strategy Such As Choosing Multiple Cds With Staggered Maturity Dates – A Method Known As Laddering Because Cds Remain The Highest-Yielding Government-Insured Tool Available For Generating Interest, And Because CD Rates Are Expected To Rise This Year, The Methodology Can Offer You Guaranteed Returns Along With A Hedge Against Missing Out On An Even Better Return On Investment A Sample Laddering Strategy You Might Divide A Chunk Of Money Into Five Certificates Maturing At Increasingly Longer Intervals Months That Mature At Increasingly Better Interest Rates At The End Of The First Year, You Would Re-Invest The 12-Month Proceeds Into Another 60-Month Certificate With Better Interest; After That
One Of Your Certificates Matures Each Year Allowing You The Freedom To Buy More Certificates Or Place Your Money Somewhere Else Laddering Points To Ponder When Developing A Laddering Strategy You Should Consider The Following: The Return On Investment You Need And When It’s Needed The Liquid Cash You’ll Need During The Life Of The Certificates The Amount You Can Afford To Have Unavailable For The Long Term The Likelihood Of Rising Interest Rates Amplify Is Here To Help! Our Experts At Amplify Credit Union Can Use Their Industry Knowledge And Experience To Help You Formulate That Strategy

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