CD Ladder Calculator

Five rungs with annual maturities is the classic setup and works well for most savers. Use fewer rungs (3) if you want simplicity or expect to need the money sooner. Use more rungs (8 to 10) if you want very frequent maturities, though the extra complexity rarely pays much. Match the longest rung to when you might actually need the money.

You choose in advance: reinvest the full amount into a new CD at the longest rung to keep the ladder rolling, cash out to savings if your plans changed, or roll into the same term. Most banks let you set automatic maturity instructions. Do this deliberately, because a CD left on autopilot often renews into the bank's standard rate, which can be much lower than competitive offers.

Bank-issued CDs charge a penalty for withdrawing before maturity, typically 3 to 12 months of interest depending on the original term. That is why the ladder matters: with rungs maturing regularly, you rarely need to break a CD early. Brokered CDs bought through a brokerage can instead be sold on the secondary market, where the price may be higher or lower than face value.

Yes. CDs at FDIC-insured banks are covered up to $250,000 per depositor, per insured bank, per ownership category, the same as savings accounts. If your ladder exceeds $250,000 at one bank, spread rungs across multiple banks or use brokered CDs from different issuers to stay fully covered.

Bank CDs are bought directly from the issuing bank and usually allow early withdrawal with a penalty. Brokered CDs are bought through a brokerage, often with slightly higher rates and no minimums, and can be sold before maturity at market price. Both carry FDIC insurance when issued by insured banks. Brokered CDs make it easy to spread large ladders across many banks for full coverage.

It depends on what you value. A ladder locks in fixed rates, protecting you if rates fall, while a high-yield savings account keeps rates variable but lets you withdraw anytime. As of late 2026, top high-yield savings rates overlap with many CD rates, so the ladder's edge is rate certainty, not raw yield. Many savers use both: savings for the emergency fund, a ladder for money with a 1 to 5 year horizon.