It’s simple: We all want better returns on our investments.
Certificates of Deposit (CDs) are one of the most reliable options for better APY, but many members are naturally concerned about locking up their funds for longer periods (and potentially losing out on future rates).
Enter: Certificate laddering, an investment strategy that’s growing in popularity, designed to stagger your certificate terms to keep your money partially liquid.
AKA: maximize your gains without sacrificing flexibility.
🪜 Certificate laddering in practice
Imagine you have $15,000 to invest. Instead of going all in on one 5-year certificate, you can ladder:
- $5,000 in a one-year certificate
- $2,500 in a two-year certificate
- $1,500 in a three-year certificate
The benefits are twofold. You still guarantee returns that outpace nearly all savings or money market accounts, but you aren’t trapped if you need to access funds unexpectedly.
Looking for some guidance? Talk through your financial strategy or see about opening a CD with a local team member at United Texas Credit Union.
