Ask Jean: What's A CD Ladder? (2026)

If ask jean what ladder is on your radar, this short guide cuts through the noise. Here is what is worth knowing, and how to put it to work today.

Key Takeaways

• A reader asks HerMoney CEO Jean Chatzky about the investing strategy known as a "CD ladder." Q: Today’s question comes from Elizabeth.
• She writes: “What’s a CD ladder?” A: A CD ladder is an investment strategy.
• Here’s how it works - you take a sum of money and then, divide it into multiple certificates of deposit (CDs), which have staggered maturity...

A reader asks HerMoney CEO Jean Chatzky about the investing strategy known as a "CD ladder."

Q: Today’s question comes from Elizabeth. She writes: “What’s a CD ladder?”

A: A CD ladder is an investment strategy. Here’s how it works - you take a sum of money and then, divide it into multiple certificates of deposit (CDs), which have staggered maturity dates.

For example, say you have $10,000 to invest. Instead of putting the whole amount into one 5-year CD, you might break it down into five CDs that have maturities of 1, 2, 3, 4 and 5 years. When each CD reaches maturity, you can invest it into a new, 5-year CD to keep the ladder going or use the funds for another purpose.

Fans of CD ladders like the strategy for a number of reasons, one of them being that you’ll have pretty simple access to your funds as the CDs mature on a rolling basis. They also allow you to grab rising interest rates over time, if we’re in a period where they’re headed up. Or, hold onto them longer if they’re going in the other direction. If you’re a conservative investor or new to investing altogether, CDs can be a good option as they are low-risk and typically FDIC-insured.

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Final Thoughts

Before you check out, double-check ask jean what ladder against current offers and any coupons you can stack. Small habits like this add up to real savings over a year.

Originally published at savingswitch.com.