What Is a CD Ladder? How To Establish a CD Bundle Strategy

May 13, 2025

A Certificate of Deposit (CD) ladder is a savings strategy. With this strategy, you can earn steady returns while you keep access to your funds at different times. Instead of locking all your money into one CD, you divide your savings. With a CD ladder, you open multiple CDs with staggered maturity dates. This way, you can take advantage of competitive rates while still maintaining access to some of your money along the way.

But, managing a CD ladder on your own can feel complicated. That’s why Centier Bank offers a simpler way: the CD Bundle. This unique CD bundle gives you the benefits of CD laddering without the guesswork. It can be an easy first step toward a long-term savings plan.

What is CD Laddering?

CDs are a type of savings tool. They are safer because they’re insured by the FDIC to at least $250,000 per depositor, per ownership category at each FDIC-insured bank, and they pay a fixed rate of interest for a set period of time.

A CD ladder lets you spread your savings across multiple CDs with different maturity dates. Instead of putting all your money into a single CD, you open several CDs that mature at different intervals.

Here’s an example:

• You deposit $5,000 into a single 5-year CD. Your money earns interest, but you won’t be able to touch it without penalties until the CD matures.
• Instead, you split that $5,000 into five CDs—one each for 1, 2, 3, 4, and 5 years. When the first CD matures, you can access the funds or reinvest into a new CD.

This strategy provides regular access to your money. Meanwhile, you take advantage of varied interest rates spread over time.

But, traditional CD ladders take time and effort to set up. You have to research different CD terms, open multiple accounts, and keep track of maturity dates. That’s where Centier’s CD Bundle makes things easier.

Recommended: Why Would Someone Use a Certificate of Deposit? 

How Does CD Laddering Work?

A CD ladder involves opening CDs with staggered terms so they mature at regular intervals. 

Here’s how it usually works:

1. A sum of money is divided into several portions. 
2. Each portion is placed in a separate CD account with varying terms. 
3. Many people use 1-year, 2-year, 3-year, 4-year, and 5-year CDs.
4. When each CD matures, decide whether to withdraw the funds or leave the funds in a CD for the same term, or open a new CD term. You may also add funds to a CD at maturity.
5. Early withdrawal from a CD may come with financial penalties. 

With a CD laddering strategy, you have regularly scheduled access to part of your savings to help avoid facing early withdrawal fees. Meanwhile, the longer-term CDs may earn higher interest. You might also like: Are CDs a Good Way to Build Wealth? 

Is CD Laddering a Good Idea?

The right savings strategy is the one that aligns best with your financial goals. As with all savings plans, it’s important to know the pros and cons.

Here are some of the advantages of a CD ladder: 

• With different maturity dates, you can access the account as each CD matures.
• CDs pay a fixed rate, so you know exactly what you’ll earn without worrying about changes in the stock market.

And, here are some of the disadvantages: 

• If you need your money before a CD matures, you might have to pay a penalty.
• If inflation rises, the fixed rates on your CDs may not keep up with the cost of living.
• Depending on customization options, some CD ladders can be complicated to set up. 

Weigh the positives and negatives of any savings strategy before you commit. 

You might also like: This is How High-Interest Rates Affect Savings & Investing 

Is a CD Ladder Better Than a Single CD?

A CD ladder can be a better option than a single CD if you want regular access to your money. As each CD matures, you can withdraw funds without penalties while still earning interest on the rest.

A single long-term CD might offer a higher rate, but you can’t touch your money until it matures without paying a fee. A CD ladder gives you more flexibility if you think you’ll need some of your savings sooner.

Discover the Centier CD Bundle: A Smarter Way to Save

Instead of setting up a traditional CD ladder on your own, Centier’s CD Bundle does the work for you. 

With one simple deposit, you automatically open:

1. A 3-month CD
2. A 6-month CD
3. A 12-month CD

Each CD matures at a different time. So, you can decide whether to withdraw your funds or roll them over into another CD. The CD Bundle takes the guesswork out of CD investing, which makes it a smart first step toward long-term savings.

Why Choose a CD Bundle?

As opposed to a traditional CD ladder, the CD Bundle has several advantages. 

You can get started with as little as $1,000 per CD and take advantage of:

• Multiple CD terms that spread out your savings and reduce risk
• Flexible access to your money as each CD reaches maturity
• Consistent growth with staggered maturity dates
• Seamless renewals to keep your savings on track
• A hassle-free setup that makes saving simple

The CD Bundle offers a structured, flexible way to build your savings with ease. With a CD Bundle, you open all three CDs at once with a single deposit.  Your funds become available at three different intervals. Your CDs are set to mature in 3, 6, and 12 months.

Once a CD matures, your savings are automatically reinvested, so they continue to grow over time. Plus, you can start with as little as just $1000.00 per CD.

Start Saving Today With Centier's CD Bundle

A CD ladder is smart because it helps you earn steady returns. In the meantime, you keep access to your money at different intervals. But, setting it up can be complicated.

Opening a CD Bundle is quick and easy:

1. Decide how much you want to deposit (minimum of $1,000 per CD).
2. Open the CD Bundle online or at a Centier branch.
3. Watch your savings grow as your CDs mature at 3, 6, and 12 months.

It’s that simple.

Not sure where to start? For a structured plan without extensive planning,  open a CD Bundle today.