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Use a CD Ladder to save more, faster, without sacrificing financial flexibility

Article: Use a CD Ladder to save more

Use a CD Ladder to save more, faster, without sacrificing financial flexibility

If you're looking for a savings strategy that lets you earn better savings rates – and doesn’t lock up your cash for years at a time – consider building an Advantis CD Ladder using Personal, Business, or IRA CDs.

What is a CD Ladder, and why should you build one?

When you build a CD Ladder, you open several High-Growth Certificates of Deposit (CDs), all with different maturity dates. One is, initially, shorter-term, while the others are longer-term. Combined, they become a powerful savings tool called a CD Ladder.

Your CD Ladder lets you make the most of short-term and long-term CDs, eventually creating a self-sustaining cycle of savings returns.

access vs earnings graphic Access vs earnings graphic Access vs earnings graphic
Short-term CD
Shorter terms allow you to access your savings with more frequency, but you can’t maximize interest.

Long-term CD
The longer your CD term, the higher your potential earnings, but you sacrifice access and liquidity.

CD Ladder: Best of Both
A CD Ladder offers long-term earning power, plus frequent access to a portion of your savings.
It’s easy. Let’s look at an example using an emergency savings number of $30,000 to build 36-Month High-Growth CD1 Ladder: Divide your savings into three equal parts, and open three CDs on the same day, each with a maturity date 12 months apart.
Now, your savings is super-charged! 

  • Big Rates: You’ve got increased earning power with higher interest rates in the 24- and 36-month CD terms.
  • Bigger Earnings: You can choose to renew your High-Growth CDs every 12 months, allowing your savings to snowball even more.
  • Savings Flexibility: You can choose to cash out your savings every 12 months as your CDs mature and turn a significant portion of your savings back into liquid cash if you need it.

BONUS: You can enhance your savings strategy when you add additional rungs to your CD Ladder (e.g., a 48- or 60-Month CD). Plus, at Advantis, you have to option to Add-to2 your initial CD deposits before your High-Growth CDs mature, so you can make the most of your CD rates and terms.

Graphic comparing 12, 24, 36 Month CDs
Increase your earning power with any number of CD Ladder steps in the form of 12, 24, 36, 48, and 60-Month CD terms.

Remember, when your first High-Growth CD matures, you can cash it, or you can use it to keep your laddering going and growing by renewing your CD. You’ll want to renew your CD for the longest term in your ladder, and repeat every year when your next CD in the ladder matures.

Graphic comparing 12, 24, 36 Month CD Ladder
Renew your savings by rolling over your mature CDs every 12-months into the longest CD term (or biggest CD step) in your ladder.
Once all of your original High-Growth CDs have matured and you’ve renewed them, your ladder can stand on its own. The CDs will continue to mature and renew, one per year. And you can keep them renewing for as long as you’d like. Now you’re earning the big rates in the 36-Month CD term, PLUS you have the option to cash out your CD every 12 months for maximum flexibility.

Graphic comparing 12, 24, 36 Month CD Ladder

When your ladder steps renew, you benefit from bigger long-term savings rates without sacrificing financial flexibility.


Can a CD Ladder really move the needle for your savings strategy?

In a word? YES.

Let’s run the numbers comparing a $30,000 12-Month CD and a $30,000 CD Ladder, spread into three $10,000 CDs (one each in 12-Month, 24-Month and 36-Month terms). Based on our current High-Growth CD rates (12/1/2018), if you used the CD Ladder savings strategy, compared to placing all your funds in a single 12-Month CD, you could save $646.96 more in your ladder than you would in that single CD (Figure 1: CD Ladder Calculator).

Figure 1:
CD Ladder Calculator screen shot


Imagine what else is possible!

Run some savings numbers for yourself using the Advantis CD Ladder Calculator. With as little as $500 per CD, you can level up your savings strategy by creating your own CD Ladder using Advantis High-Growth Certificates of Deposit.

And, remember, with Advantis High-Growth CDs, you can Add-To your CD anytime during your CD term, so your savings potential can grow even more. How to Add-To your CD deposit


One last thing…

It’s totally okay if you’re not ready to lock down your savings for 12 months at a time. This is Advantis – with us, you can explore your options.

Instead of a High-Growth CD Ladder, you can keep your cash at your fingetips and still make your money make you money. Our free checking accounts pay you, and an Advantis High-Growth Money Market is also a great place to park your cash and earn more.


Earn unlimited cash
back every month.

Use your everyday money
to make you money, every day.

Keep your savings liquid,
and earn solid returns.



Advantis High-Growth Certificates of Deposit (CD) are available at in 6-60 Month Certificates with a $500 minimum deposit and 18- Month Bump CDs with a minimum deposit of $2,500. Offer subject to change without notice. APY assumes that all deposit funds and interest will remain on deposit until maturity. Interest rates may increase or decrease upon CD maturity and renewal. For IRA certificates, there is a plan closure fee which may reduce earnings. For all certificates, there may be a penalty for early withdrawal. Fees or penalties may reduce earnings. 2Although you may now make unlimited additional deposits to your certificate account, such deposits will not bump you into a higher bracket for rate purposes. During the term of your CD, regardless of additional deposits, your rate will remain fixed at the rate associated with your initial deposit. However, upon renewal, if your additional deposits have bumped you into a higher bracket you will earn the rate associated with that higher bracket. Federally insured by NCUA.