Your ladder
$25,000
5 rungs · 5 yr ladder
How a CD ladder works: split the deposit into equal rungs, each maturing a year later. When rung 1 matures, you reinvest it at the top of the ladder. You always have cash coming due within 12 months — no lock-in penalty needed.
Blended APY
4.44%
$5,000/rung · total interest at maturity $3,464
Rung
Deposit
Rate
Maturity value
Interest
1 yr
$5,000
4.70%
$5,235.00
+$235.00
2 yr
$5,000
4.55%
$5,465.35
+$465.35
3 yr
$5,000
4.40%
$5,689.47
+$689.47
4 yr
$5,000
4.30%
$5,917.08
+$917.08
5 yr
$5,000
4.25%
$6,156.73
+$1,156.73
Ladder strategy
$3,464
4.44% blended · laddered across 5 years
1-yr rolled 5x (same rate)
$6,454
4.70% rolled — assumes rate holds; laddering hedges against drops
How we built this tool
How CD laddering works
Step 1
Equal rungs, staggered maturities
Divide your deposit into equal slices. Each slice buys a CD that matures 1, 2, 3, ... years out. One rung rolls every year.
Step 2
Blended APY beats rolling short
Longer-term CDs pay more today. A ladder gets you most of the long-end yield without fully locking up cash — the best of both worlds.
Step 3
Rate-drop insurance
If rates fall, your longer rungs stay locked. If rates rise, the near-term rung rolls into the new higher rate. You win either way.
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