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What Is a CD Ladder?

A certificate of deposit (CD) is an investment product with a fixed interest rate for a term of three months to five years.

Long-term CDs have higher interest rates.

If you withdraw money early, youll pay a penalty.

A CD ladder is a strategy in which you open several CDs that mature at different times to take advantage of long-term interest rates and have access to funds on a regular basis.

When a CD matures, you can reinvest the money at the same financial institution or somewhere else to get a better rate.

Compare annual percentage yields and terms from several banks and credit unions.

Published with permission from RISMedia.

About Debbie Kirkland

Realtor Since 2002. Top 5% In Tallahassee, Florida. Member, 2012 President, Tallahassee Board of Realtors I love sharing information and photographs of the Tallahassee, FL area. I'm a native and know the area well and love finding homes for people in the area as well as being a resource by sharing what I love about my hometown! I want your real estate referrals as well ~ So check out my website, get to know Tallahassee or SEARCH for area homes, and contact me soon!

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