|
CD Ladders
Climb Up to Attractive Rates
There's good news for savers who have been stuck in the mud of mediocre CD returns in recent years. Rising rates have come to the rescue, and it's the perfect time to capture great guaranteed returns. To benefit most from climbing interest rates, you may want to consider a laddering strategy with your CDs.
Build Your Ladder
Are you on the fence about whether to invest in a CD now, or hold out for higher rates on the horizon? The answer may be to do both, with a CD ladder. By staggering maturities, you take advantage of rising rates and enjoy access to your money by reinvesting at set intervals.
When interest rates are trending up, you may want to structure a CD ladder with short maturity intervals. To have CDs mature every six months, open six-month, 12-month, 18-month and 24-month CDs. As each matures, renew it at the longest term in your ladder to keep the ladder going and capture the longer-term CD rate, which is usually higher.
This laddering strategy can help even out interest rate fluctuations, since you can take advantage of rising rates while having some protection from falling rates. If you don't need the income from a CD in the near term, let interest accumulate in the CD and then withdraw the interest at maturity.
Start Investing Now
At Chaco Credit Union, we offer competitive rates on our CDs. Stop in today to learn more about building a CD ladder, call (513) 785-3500 or visit our Web site at www.chacocu.org.
|
Peace of mind is one of the best perks of a CD. You can rest assured that CDs won't be subject to stock market fluctuations, and you can count on security, because your deposits are federally insured up to $100,000; up to $250,000 for certain retirement accounts.
|
|
