How to Use a CD Laddering Strategy to Your Advantage

Recently, a customer stopped by one of our branches with a clear plan for long-term financial success. Her goal was simple: Reduce risk, earn steady returns and still keep her money accessible when she needed it.

Her strategy wasn’t complicated or exclusive. It’s called CD laddering, and it’s one of the most practical ways to save in uncertain markets.

Why CD laddering makes sense right now

Regardless of the prevailing rate environment, stock market returns aren’t guaranteed. These investments can fluctuate and even well-diversified portfolios carry risk. Certificates of deposit, on the other hand, offer something many savers consistently value: Certainty.

With CDs, you know exactly how much interest you’ll earn and when your money will be available. CD laddering builds on that stability by adding flexibility.

What is CD laddering?

CD laddering means spreading your savings across multiple CDs with different maturity dates instead of locking everything into one long-term CD.

This approach lets you:

• Earn higher interest rates typically offered on longer-term CDs

• Access portions of your money at regular intervals

• Reinvest at potentially higher rates as CDs mature

It sounds complex, but in practice it’s very straightforward.

A simple example

Let’s say you invest $50,000, split evenly into five CDs of $10,000 each, all opened at the same time but with different terms. Because of this, each CD matures at a different point over several months or even years.

As each CD reaches maturity, you have options:

• Withdraw the funds if you need them

• Roll the balance into a new CD

• Reinvest at current rates to keep the ladder going

Over time, this strategy provides a steady flow of available cash while your remaining CDs continue earning interest. You can also use our CD calculator to plan your own ladder and see how different terms and amounts affect your returns.

Why savers choose CD laddering

CD laddering is a low-risk savings strategy that works well for people who want:

• Predictable earnings

• Reduced exposure to market volatility

• Ongoing access to their money

It’s especially helpful for retirees, conservative investors or anyone looking for a balanced way to grow savings without locking everything away.

Ready to get started?

You can open any OMB Bank CD online or visit any of our convenient branch locations for help setting up a CD ladder that fits your goals. In the end, saving doesn’t have to be complicated. Most times it just has to be smart.

OMB and its affiliates do not provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decision. This material is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy.