A CD ladder is an investment strategy that divides your deposit across multiple CDs with staggered maturity dates. This approach balances the higher returns of longer-term CDs with the flexibility of regular access to a portion of your funds.
How the MyLadder CD Works:
When you open a MyLadder CD with a minimum deposit of $2,500, RMO automatically splits your deposit across CDs with terms of 12, 24, 36, 48, and 60 months. As each CD matures, you can either withdraw the funds or reinvest into a new 60-month CD to keep the ladder going.
Example: You deposit $10,000 into a MyLadder CD.
- $2,000 goes into a 12-month CD
- $2,000 goes into a 24-month CD
- $2,000 goes into a 36-month CD
- $2,000 goes into a 48-month CD
- $2,000 goes into a 60-month CD
After year one, the 12-month CD matures and you can reinvest it at the current 60-month rate. After year two, the original 24-month CD matures, and so on. Over time, all five rungs of your ladder earn the higher long-term rate while giving you access to one-fifth of your total deposit every 12 months.
Benefits:
- Reduces the risk of locking all your money at one rate.
- Provides liquidity at regular intervals without early withdrawal penalties.
- Takes advantage of typically higher long-term APYs.
You can set up a MyLadder CD through MyRMO or schedule an appointment through MyRMO or by calling us to discuss the strategy with an Expert.