What is CD laddering?

CD laddering is a savings strategy that spreads your money across multiple CDs to maintain frequent access to cash while receiving high-yielding returns. 

How to build a CD ladder
 

Open your CDs at the same time with varying term lengths123.For example, a 15-month CD ladder would include 7-, 11-, and 15-month CDs.

Once your first CD matures, it either rolls into the next CD1 in the ladder or you can make a withdrawal.

With three CDs maturing at different times, you get access to your cash overtime. Or, choose to keep saving and earn even more.

 

The image above shoes an example CD ladder consisting of 7, 11, and 15 month CDs. Each CD is renewed with the longest CD term in the ladder to maintain the same access to funds.

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Build your CD ladder

Enter your ZIP code to explore CD rates in your area. The Annual Percentage Yield (APY)4 is based off of U.S. Bank’s CD Special and is effective currentdate

Longest CD term
Choose ladder length
Enter an amount between $2,000 to $1,000,000.

Fill in the information, to the left, and click “Build your CD ladder”.

TOTAL AMOUNT AT MATURITY

Customize your ladder

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CD term

APY

Initial deposit

Amount at maturity
TOTAL AMOUNT AT MATURITY

3 great reasons why you should open a CD ladder

Control over your savings

CD laddering spreads your money over multiple CDs with varying terms, providing more control on when you have access to your money.

More for your money

CD laddering allows you to take advantage of higher APY rates and place your money where you find the most value.

Guaranteed returns

CDs are not affected by the stock market, meaning once your CD ladder is funded, your returns are guaranteed3.

Frequently asked questions

A CD ladder is a savings strategy where you can take advantage of CD rates while having more controllable access to your money. To start, you select your deposit amount and term. The deposit amount is then split up evenly throughout your term, each CD created represents a rung in your ladder. For instance, if your total deposit amount is $4,000 and you select a 19-month term your money is split up into 7-, 11-, 15- and 19-month $1,000 CDs giving you four rungs in your CD ladder.

You will have access to your money every time a CD in your ladder matures. For instance, if you have a 19-month ladder comprised of 7-, 11-, 15- and 19-month CDs you will have access to your money first after 7 months and then every 4 months afterwards. 

Rates vary by term of the CD and your location.

Once your first CD matures, you have 10 calendar days prior to renewal to select from a few options: 

  1. Let U.S. Bank automatically renew your CD ladder2. No action on your end is needed, just sit and do nothing.
  2. You can withdraw your accumulated funds by transferring it to a checking or savings account.
  3. You can personally continue your CD ladder by customizing your deposit amount and new term once your first CD matures.

The APY1 on each of the CDs included in your CD ladder compounds on a monthly basis.

Generally, withdrawal of funds before maturity (except due to death, legal title changes or legal incompetence) is not permitted without penalty and a $25 early withdrawal fee. However, no penalty or early withdrawal fee is assessed on interest that accrued or capitalized since the last renewal date. The information is provided to you in the Certificate of Deposit Truth in Savings Disclosure. The system automatically assesses the penalty and early withdrawal fee.

No money can be added to pre-existing CDs in your ladder. However, you can open more CDs and add them to your ladder at any time.

You can always close out a CD or add more CDs to your ladder. However, after the CD term starts, closing it early will be subject to early withdrawal terms.

No, once you have funded your CD ladder, no deposit amounts, terms or rates can be adjusted. 

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Disclosures

  1. $1,000 minimum opening deposit for a single CD with a maximum of $250,000. $2,000 minimum opening deposit for a CD ladder comprised of at least 2 CDs up to a maximum of $1,250,000 for up to 5 CDs.

  2. Offer good for the initial term only. CD is automatically renewed for the same term. The rate is determined based on the published rate for the CD, excluding CD Specials, that is closest to but not exceeding the term of the CD. Advertised rate and APY are offered at the bank's discretion and may change daily.

  4. Annual Percentage Yield (APY) assumes principal and interest remain on deposit for the term of the certificate. All interest payments for the APY will be made at the end of the term or annually, whichever occurs first. Penalty will be imposed for early withdrawal. Fees could reduce earning on the account.

  5. Online application is not valid for single maturity CDs, business or retirement CDs, brokerage deposits, institutional investors, public funds or in conjunction with other promotional offers.

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Deposit products are offered by U.S. Bank National Association. Member FDIC.