GLOSSARY · BUDGETING, SPENDING & SAVING

CD ladder

Splitting savings across several certificates of deposit that mature at different times, for example every few months, so part of the money becomes available regularly while the rest earns a fixed rate. It trades some access for a known rate, and taking money out of a CD before it matures usually costs a penalty.

Also called: certificate of deposit ladder, laddering, bond ladder, T-bill ladder, laddering CDs, Treasury ladder

COMPUTE IT WITH YOUR NUMBERS

HYSA vs T-bill vs CD vs MMF after tax →After federal and state tax, where should my cash sit?Down payment savings timeline →How long to save a down payment plus closing costs?

LEARN IT PROPERLY

CHAPTER · SAVINGS FOUNDATIONS & EMERGENCY FUNDS · FOUNDATIONSWhere to Keep Your Savings CHAPTER · GOAL-BASED SAVINGS & ACCELERATION · STRATEGIESWhere Your Cash Should Live: Savings Accounts, CDs and Treasury Bills

SOURCES

Regulation DD (Truth in Savings), 12 CFR Part 1030. Consumer Financial Protection Bureau.
Certificates of Deposit (CDs). U.S. Securities and Exchange Commission, Investor.gov.

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