Banking » Compare Banks » Power Up Your CD Laddering: 6 Banks to Consider
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Power Up Your CD Laddering: 6 Banks to Consider

If you're interested in implementing a CD laddering strategy, we've compiled a list of 6 top-notch CD account options
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
Interest Rates Last Update: April 15, 2024
The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
Interest Rates Last Update: April 15, 2024

The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.

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Essential Elements For Successful CD Laddering

When selecting the optimal destinations for CD laddering, our attention was directed toward 4 crucial factors that played a significant role in our decision-making process

We placed a strong emphasis on interest rates due to their direct impact on the potential returns of your CD laddering strategy. Higher interest rates can significantly enhance your earnings and yield greater profits over time.

By prioritizing banks or financial institutions that offer competitive interest rates, you can maximize the growth of your investment portfolio.

The availability of a diverse range of term lengths was another key factor we considered. CD laddering involves investing in multiple CDs with staggered maturity dates, allowing you to access funds periodically.

Having a variety of term lengths gives you the flexibility to create a ladder with different time horizons, which can align with your financial goals and provide liquidity options at regular intervals.

The reputation and stability of the banks or financial institutions chosen for CD laddering are vital considerations. This was also present in our banking and savings survey.

Opting for banks with solid reputations helps ensure the safety and security of your investments, reducing the risk of potential financial setbacks. 

Discover Bank

discover logo
discover logo

Discover Bank

APY Range

2.00% – 4.70%

Minimum Deposit

$2,500

Terms

3 – 120 months

Fees

$0

Considering Discover's high rates across various CD terms, it presents an excellent opportunity for implementing a CD ladder strategy. By depositing funds and building a ladder with staggered maturities, investors can take advantage of competitive rates and optimize their returns over time.

There are 11 different terms to choose from, which greatly benefit a successful CD laddering strategy. Also, Discover is one of the most reputable online banks in the US.

CD Term
APY
3 Months
2.00%
6 Months
4.25%
9 Months
4.25%
12 Months
4.70%
18 Months
4.40%
24 Months
4.00%
30 Months
3.75%
36 Months
3.75%
48 Months
3.75%
60 Months
3.75%
120 Months
3.75%

You can open a Discover CD account online, which can take you less than 15 minutes if you come prepared with the relevant documents.

 

Capital One

Capital One
Capital One

Capital One

APY Range

4.00% – 5.10%

Minimum Deposit

$0

Terms

6 – 60 months

Fees

$0

Capital One is an excellent choice for CD laddering due to several compelling reasons. First, their Capital One 360 CDs provide a secure means of growing your savings, offering competitive interest rates that range from 4.00% – 5.10% APY, depending on the chosen CD term. 

Furthermore, while it lacks a 3-month CD, it offers a variety of terms and options for long-term CD laddering. Lastly, Capital One is one of the most reputable online banks in the nation.

CD Term
APY
6 Months
4.35%
9 Months
4.35%
12 Months
4.90%
18 Months
4.50%
24 Months
4.20%
30 Months
4.10%
36 Months
4.10%
48 Months
4.05%
60 Months
4.00%

This flexibility enables you to start saving immediately, regardless of your current financial situation. Additionally, Capital One's daily accrual, compounded interest, and monthly payouts throughout the CD term optimize the growth potential of your investment.

Alliant Credit Union

Alliant Credit Union
Alliant Credit Union

Alliant Credit Union

APY Range

5.08%-5.20%

Minimum Deposit

$1,000

Terms

3 months – 5 years

Fees

$0

While this is not a bank, Alliant Credit Union is an excellent choice for CD laddering due to its competitive rates and favorable terms. Their rates consistently rank among the best nationwide across various durations, even for longer-term certificates.

At maturity, you will receive the final interest payment along with your initial deposit. These factors make Alliant Credit Union an attractive option for CD laddering, ensuring the potential for solid returns on your investments.

Term
APY
3 Months
4.25%
6 Months
5.00%
12 Months
5.15% – 5.20
18 Months
4.90% – 4.95%
24 Months
4.30% – 4.40%
36 Months
4.20% – 4.30%
48 Months
4.05% – 4.10%
60 Months
4.00% – 4.05%

There are three available methods for opening an Alliant certificate account. For existing Alliant members, simply log in to your online banking account, locate “Open a New Account” in the left sidebar, and proceed by following the provided instructions.

New members can initiate the membership application process online and select “Certificates” as the desired account type during the application. Whether you're an existing member or new to Alliant, these convenient options allow you to easily open a certificate account and begin your investment journey.

Ally Bank

ally bank
ally bank

Ally Bank

APY Range

3.00% – 4.50%

Minimum Deposit

$0

Terms

3 – 60 months

Fees

$0

Ally Bank is an excellent choice for CD laddering due to its attractive features. While it lacks 2-year CD term, they offer high-yield CDs with competitive rates and no minimum deposit requirement, making them accessible to a wide range of investors.

Ally provides a variety of CD options, including fixed-rate CDs, Raise Your Rate CDs, and No-penalty CDs, offering flexibility to suit different investment strategies. The 10-day grace period upon maturity allows for hassle-free fund withdrawals.

CD Term
APY
Early Withdrawal Penalty
3 Months
3.00%
60 days of interest
6 Months
4.40%
60 days of interest
9 Months
4.45%
60 days of interest
12 Months
4.50%
60 days of interest
11 Months – No Penalty
4.00%
/
18 Months
4.45%
90 days of interest
36 Months
4.00%
90 days of interest
60 Months
3.90%
150 days of interest

 

While early withdrawals incur penalties, Ally Bank's penalty structure is lower than industry standards. Opening a CD account with Ally is quick and simple.

Synchrony Bank

synchrony-bank-logo-vector
synchrony-bank-logo-vector

Synchrony Bank

APY Range

2.05% – 5.15%

Minimum Deposit

$0

Terms

3 months – 5 year

Fees

$0

Synchrony Bank is an excellent choice for CD laddering for several reasons. As an online-only institution, Synchrony Bank can offer competitive interest rates on their CDs by minimizing the overhead costs associated with physical branches. This ensures that your investments can generate higher returns.

Also, Synchrony offers 10 different terms to choose from, which is very important for investors who are looking for CD laddering.

CD Term
APY
3 Months
0.25%
6 Months
5.15%
9 Months
4.90%
12 Months
4.80%
11 Months – No Penalty
0.25%
18 Months
4.50%
24 Months
4.20%
36 Months
4.15%
48 Months
4.00%
60 Months
4.00%

Lastly, Synchrony Bank provides additional flexibility with specialized CD options. Their bump-up CDs allow you to take advantage of rising interest rates by requesting a one-time rate increase during the CD term. Their no-penalty CDs enable you to withdraw your funds before the maturity date without incurring any penalties.

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Merrick Bank

Merrick bank logo
Merrick bank logo

Merrick Bank

APY Range

4.05% – 5.25%

Minimum Deposit

$25,000

Terms

3 months – 5 years

Fees

$0

Merrick Bank is an excellent choice for CD laddering due to its remarkable interest rates and varied terms, consistently surpassing those offered by online banks and credit unions.

With a range of terms available from three months to five years, you can secure a favorable rate for the entire CD duration. But, there is one main drawback: the minimum deposit requirement of $25,000 in one transaction, which may be too high for many investors.

CD Term
APY
3 Months
5.25%
6 Months
5.25%
9 Months
5.15%
12 Months
4.95%
18 Months
4.65%
24 Months
4.40%
36 Months
4.20%
48 Months
4.10%
60 Months
4.05%

Merrick Bank, a subsidiary of New York-based Cardworks, has a solid track record since its establishment in 1997, primarily focusing on credit cards and loans. Expanding its product lineup to include CDs makes it a trusted and reliable option for CD laddering.

TIAA Bank

TIAA_Bank_logo
TIAA_Bank_logo

TIAA Bank

APY Range

3.95% – 5.15%

Minimum Deposit

$1,000

Terms

3 months – 5 years

Fees

$0

TIAA Bank is an excellent choice for CD laddering due to several key factors. Firstly, they offer competitive interest rates on their CDs, surpassing the rates typically found in traditional savings accounts. Also, there is 10 different terms that can help you make a great CD ladder strategy.

CD Term
APY
3 Months
4.00%
6 Months
4.00%
9 Months
5.25%
12 Months
5.00%
18 Months
4.60%
24 Months
4.40%
30 Months
4.10%
36 Months
4.10%
48 Months
4.05%
60 Months
3.95%

TIAA Bank is a reputable U.S.-based institution, providing a range of banking and lending services to both individuals and institutional clients. As a division of TIAA, a renowned financial services organization serving academia, research, medicine, and culture, TIAA Bank brings stability and expertise to its CD offerings.

FAQs

CD laddering is a strategy where you invest in multiple  CDs with different maturity dates. It allows you to balance liquidity and potentially capture better interest rates over time.

With CD laddering, you stagger your CD investments across various terms, such as 3-month, 6-month and 12-month CDs. As each CD matures, you have the option to reinvest or access the funds while maintaining a consistent ladder of maturities.

CD laddering allows you to have CDs maturing at regular intervals, providing access to funds periodically. This helps maintain liquidity in your portfolio and can be useful for emergencies or taking advantage of other investment opportunities.

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Picture of Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
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