CD Laddering

CD laddering is a smart way to protect yourself against fluctuations in interest rates while giving you the security of knowing that you will be able to access at least some of your money within a relatively short time frame. The beauty of a CD ladder is that you lower your risk and increase your return without losing access to at least some of your cash.

Here's how it works:

Let's say you want to open a three year CD ladder with $15,000. You come to HUECU and open a one year CD for $5000, a two year CD for $5000, and a three year CD for $5000. Each year is a rung on the ladder. When the one year CD matures, you reinvest that money in a three year CD because by that time your three year CD has two years left until it matures. As each year's CD comes due, you roll it into a new three year CD.

You can choose a shorter or longer term when you begin the ladder, but the key is to use the same term for each one once you start rolling them over at maturity. At the end of three years you'll have three CDs with one maturing every year after that, so you'll never have all of your money tied up long-term or at lower than market interest rates.

Open a CD ladder today! You can apply online or come in to any one of our branches. You can also call 617-495-4460 or email us for more information about this or any of our other services. Click here to see current rates.