CD / Term Deposit Ladder Planner

The CD ladder planner solves a real problem: longer-term CDs pay better rates, but locking up all your money for 5 years feels risky. What if you need it? A ladder splits your savings across multiple CDs with staggered maturity dates, giving you regular access while still capturing higher yields.

The common mistake? Putting everything into a single 5-year CD for the best rate, then needing money at year 2 and eating a 6-month interest penalty. Or keeping too much in savings at 4% when a ladder could earn 5%+ on most of it.

Enter your total deposit, set up your rungs (term lengths and rates), and see exactly when each portion matures. The planner shows your blended yield across the whole ladder and what happens when you roll maturing CDs back in.

Total deposit amount is the money you're spreading across the ladder. FDIC insurance covers $250,000 per depositor per bank—for larger amounts, you'd use multiple banks.

Rung structure means how many CDs and their terms. A classic 5-year ladder uses 1, 2, 3, 4, and 5-year terms with equal amounts. A short ladder might use 3, 6, 9, and 12-month terms for quarterly liquidity.

Current CD rates vary significantly between banks—sometimes by 0.5-1% for the same term. Online banks and credit unions typically beat traditional banks. As of early 2025, competitive 1-year CDs offer 4.5-5.0% and 5-year CDs offer 4.0-4.5%.

Roll strategy determines what happens at maturity:

• Roll into same term: keeps your original ladder structure
• Roll into longest term: maximizes yield over time
• Withdraw: takes the cash, stopping that rung

Analysis period shows how the ladder performs over 5, 10, or 20 years with consistent rolling.

Use this planner when:

• You have savings beyond your emergency fund earning minimal interest
• You want higher yields than savings accounts but some liquidity
• You're comparing ladder structures (3-year vs 5-year, equal vs weighted)
• You need to visualize maturity dates and plan around them
• You're deciding between a ladder and a single long-term CD

This planner won't:

• Show real-time CD rates from specific banks—you enter rates manually
• Calculate early withdrawal penalties if you break a CD
• Account for rate changes at rollover (it uses constant rates)
• Model taxes on CD interest (taxable in the year earned)

Early withdrawal penalties typically cost 3-12 months of interest. If you need money before a rung matures, the penalty can wipe out your yield advantage over savings. Only ladder money you're confident you won't need until maturity.

Shop aggressively for rates. The difference between 4.5% and 5.0% on $50,000 over 5 years is about $1,250 in interest. Online banks, credit unions, and brokered CDs through Fidelity or Schwab often beat local bank rates.

Watch for auto-renewal traps. Many banks automatically renew maturing CDs at their current (often lower) rates. Set calendar reminders a week before each maturity to evaluate whether to roll there or move to a better-paying bank.

CD interest is taxable in the year it's earned, even if you don't withdraw. A $50,000 ladder earning 4.5% generates ~$2,250 in taxable income annually. Consider this when comparing to tax-advantaged alternatives.

• All CDs are held to maturity (no early withdrawal penalties)
• Rates remain constant at rollover (real rates fluctuate with Fed policy)
• Interest compounds annually (some CDs compound daily or monthly)
• Full amounts roll over (no partial withdrawals)

These simplifications help visualize ladder mechanics. Real outcomes depend on actual rates at each rollover date and whether you hold to maturity.

• FDIC – Deposit Insurance Coverage
• CFPB – Bank Accounts and Services
• Federal Reserve – Selected Interest Rates