Maximize your savings interest while keeping regular access to your cash.
Use this tool to design a certificate of deposit (CD) ladder that fits your timeline. Splitting a deposit across CDs with staggered maturity dates captures the higher long term yields while a portion of your money comes free every year. Each rung below is priced at today's MonitorBankRates average APY for its own term, so a 12 month rung and a 60 month rung earn different rates, exactly as they would at the bank. Compare today's best CD rates to beat the averages.
Use your state's average CD rates
Loads the MonitorBankRates average CD APY for your state for every rung of the ladder, plus the state high yield savings average for the comparison.
CD Ladder Strategy
Enter your total deposit and the number of rungs. Results update as you type.
How the ladder compares over the same period
| Rung | Term | Deposit | APY | Interest | Value at Maturity | Maturity Date |
|---|
A $50,000 CD Ladder at Today's Average Rates
As of September 21, 2026, a five rung CD ladder splitting $50,000 into five $10,000 CDs earns about $4,265.06 in interest over its first cycle at today's MonitorBankRates national averages: 2.87% for 12 months, 2.75% for 24 months, 2.69% for 36 months, 2.68% for 48 months and 2.79% for 60 months. One rung matures every year, so $10,000 plus interest comes free each year starting September 22, 2027; rolling each matured rung into a new 60 month CD brings the five year total to about $7,294.50. Putting the whole $50,000 in a single 60 month CD at 2.79% would earn $7,378.01 over five years with no access until September 22, 2031, and a high yield savings account at today's 2.00% average would earn $5,193.22 over the same five years if the rate held, which it is not guaranteed to do.
| Rung | Term and APY | Matures | Interest |
|---|---|---|---|
| $10,000 CD | 12 month CD at 2.87% | September 22, 2027 | $286.70 |
| $10,000 CD | 24 month CD at 2.75% | September 22, 2028 | $558.38 |
| $10,000 CD | 36 month CD at 2.69% | September 22, 2029 | $827.64 |
| $10,000 CD | 48 month CD at 2.68% | September 22, 2030 | $1,116.74 |
| $10,000 CD | 60 month CD at 2.79% | September 22, 2031 | $1,475.60 |
| Ladder total | 5 rungs, $50,000 | Yearly access | $4,265.06 |
Averages are recalculated every day from the CD and savings rates banks and credit unions publish, so this example reflects today's market rather than a sample rate.
How a CD Ladder Works
A CD ladder is a savings strategy that divides your deposit across several certificates of deposit with different maturity dates. It lets you take advantage of the higher rates usually paid on long term CDs while keeping a portion of your money accessible every year.
For example, instead of putting $50,000 in a single 5 year CD, you split it into five $10,000 CDs maturing in 1, 2, 3, 4 and 5 years. As each CD matures you can reinvest it in a new 5 year CD or withdraw the cash with no penalty. After the first cycle, every rung is a 5 year CD and one still matures every year.
Key Definitions
How to Build Your CD Ladder
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Decide your total investment
Enter the total amount you want to lock into CDs. Use money you genuinely will not need for at least the length of your shortest rung, because CDs charge early withdrawal penalties.
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Choose the number of rungs
3 to 5 rungs is the most common setup. Five rungs means a CD matures every year, giving you annual access to one fifth of your money. Ten rungs means more frequent reinvestment decisions and smaller individual CDs.
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Check the rate on each rung
By default each rung uses today's MonitorBankRates average for its term, so you can see the real shape of the rate curve. Compare 12 month, 24 month and 60 month CD rates to see the trade off between term length and yield, or check the override box to apply a single quoted APY to every rung.
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Review the maturity timeline
The table shows each rung's deposit, APY, interest, value and maturity date, and the comparison boxes show what the same money would earn in one 60 month CD or in high yield savings. As each rung matures, roll it into a new CD at the longest term in your ladder to keep the structure going.
Is a CD Ladder Right for You?
CD ladders are not the right tool for every situation. They are great for predictable savers who want a yield bump over plain savings without locking up everything for years. They are not great for emergency funds (you cannot withdraw without a penalty) or for long term investing (stocks beat CDs over decades). Here is the honest trade off:
A CD ladder makes sense when
- You have a chunk of money you will not need for several years
- You want yields above a savings account but more access than a single long CD
- You are planning for a known future expense (down payment, tuition, a car) on a 1 to 5 year horizon
- You are a retiree using CDs to fund the next few years of living expenses
- You want FDIC insured, principal protected returns rather than market exposure
Skip the ladder when
- This is your emergency fund; use a high yield savings account instead
- Your time horizon is 10 or more years; stock index funds will likely beat CDs
- You expect to need the money before any rung matures
- Current CD rates are not meaningfully higher than savings rates, so the spread is not worth the lockup (the comparison boxes above show today's gap)
- You would be opening tiny CDs; many banks have $500 to $1,000 minimums per CD, and a 10 rung ladder on $5,000 does not fit
One alternative worth knowing about: if your goal is simply to earn more than savings without the complexity, a single longer term CD or the CD vs. HYSA comparison may be simpler and capture most of the benefit. The ladder is best when liquidity matters as much as yield.
Frequently Asked Questions
What is a CD ladder?
A CD ladder is a savings strategy where you split your money across multiple certificates of deposit with staggered maturity dates, for example five CDs maturing in 1, 2, 3, 4 and 5 years. As each CD matures you reinvest it in a new long term CD, so you keep earning the higher long term yield while still having access to a portion of your money each year. Read more about CD laddering strategy for a deeper walkthrough.
What rate does each rung of the ladder earn?
Each rung earns the rate for its own term. As of September 21, 2026, the MonitorBankRates national averages are 2.87% on a 12 month CD, 2.69% on a 36 month CD and 2.79% on a 60 month CD, computed from rates published by more than 8,000 banks and credit unions. The calculator uses those averages by rung, and the best CDs pay well above the average, so shop each rung separately.
How many rungs should my ladder have?
Most savers use 3 to 5 rungs. Three rungs (1, 2 and 3 years) keep your money relatively accessible but earn less than longer ladders. Five rungs (1 through 5 years) is the sweet spot for most people: one CD matures each year, and the reinvested portion captures the highest 5 year yields. Ten rungs make sense for very large balances but require a minimum deposit for every CD.
What happens when a CD on the ladder matures?
You have three choices: (1) reinvest the principal plus interest in a new long term CD, keeping the ladder going, (2) withdraw the money with no penalty during the brief grace period after maturity, or (3) take the interest out and roll only the principal forward. Most banks auto renew at the same term unless you tell them otherwise, so watch the maturity dates in the table above so you are not locked into a rate you did not intend.
Are CDs FDIC insured?
Yes. CDs at FDIC member banks are insured up to $250,000 per depositor, per bank, per ownership category. Credit union CDs (sometimes called share certificates) get equivalent NCUA insurance. If you are laddering more than $250,000, spread the CDs across multiple banks to keep all of it insured.
What is the early withdrawal penalty on a CD?
Penalties vary but typically equal 3 to 12 months of interest, depending on the term length. A 1 year CD might charge 90 days of interest if you withdraw early; a 5 year CD might charge 12 months. The penalty can eat into your principal if you withdraw early enough. The whole point of laddering is having scheduled access points so you rarely need to break a CD early. The early withdrawal penalty calculator shows the dollar cost.
Should I use a CD ladder or just buy one long term CD?
A single 5 year CD usually offers the highest APY but locks up all your money. A 5 rung ladder gives up a little average yield during the first cycle, because the early rungs are shorter, but provides annual liquidity. If you are confident you will not need the money for 5 years, the single long CD wins on yield. If there is any chance you will need partial access, the ladder wins on flexibility. The comparison boxes above show the dollar difference at today's averages.
What is the difference between a CD and a high yield savings account?
A high yield savings account is fully liquid, so you can withdraw any time without penalty, but the rate can change at any time. A CD locks you in: you commit to a fixed term and the bank guarantees the APY for that whole term. CDs often pay more than savings at the same bank, but you pay for that with reduced flexibility.
Are brokered CDs different from bank CDs?
Yes. Brokered CDs are CDs you buy through a brokerage rather than directly from a bank. They often offer higher yields and let you sell the CD on a secondary market before maturity, avoiding the early withdrawal penalty, though you may sell at a loss if rates have risen. The trade off is that brokered CDs do not auto renew and require more monitoring. They are a fine fit for experienced savers who want maximum yield and do not mind the extra steps.
