CD Laddering
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Learn Whether a CD Laddering Strategy Is Right for You

A CD laddering strategy can be a smart choice if you want to take advantage of CD interest rates while still enjoying regular access to your money.

Our certificate of deposit rates are significantly higher than the national average1. In fact, in 2011, 2012 and 2013, Nationwide Bank earned the Bankrate.com Top-Tier award for consistently offering top-tier annual percentage yields (APYs).

What is CD laddering?

When it comes to CDs, you may think about getting one certificate of deposit with one maturity date. With a CD ladder, you would open several smaller CDs with varying maturity dates.

For example, let's say you have $8,000 to deposit. Instead of opening one fixed-term CD with the entire $8,000, you may want to consider this CD laddering strategy:

  • Put $2,000 in a 6-month CD
  • Put $2,000 in a 12-month CD
  • Put $2,000 in an 18-month CD
  • Put $2,000 in a 24-month CD 

Notice that your CDs will mature every 6 months. As they mature, you can decide whether to use the money or open a new CD with it to keep the ladder going.

Laddering CDs creates a staggered savings approach, where you have regular intervals of access to your money, while yielding higher returns. But remember, if you take the money out of a CD account before it matures, you may be charged a penalty, which will lower your rate of return.