The Ultimate Explanation Of CD Laddering: Financial Success in 2024

Read the transcript below or watch the YouTube video above for more information.

Transcript:

My name is Corey Nischan, and I am the online branch manager and an assistant vice president.

What is CD Laddering?

CD Laddering is a technique that a lot of our customers use to make funds available on a predictable schedule. Often, you’ll see customers open a one-year CD, a two-year CD, or a three-year CD, and so on. Every year they’re going to have a CD come into maturity, and then they can decide the best way to utilize those funds as they become available.

You can add to it, close it and redeem the funds, or do it where you open one CD every month. For example, if you opened one CD every month, and each of those CDs was a 12-month CD, that means next year, every month, you’re going to have a CD come to maturity that you have flexibility with.

That’s one option for CD laddering. Another would be if you want to have funds available in one year, two years, three years. You could go in on one day and open multiple accounts for different terms, and then you’d have those funds available on a really predictable schedule.

It tends to be either customers that want something available every month or customers that want something available every year, and there are ways to accomplish both of those. In fact, I had customers that came and visited me the first Monday of every month for a year. They opened a new certificate of deposit, and then the next year they came in on the same schedule to add funds to each certificate that they had opened or to change the term or modify things as they needed.

We build long-standing relationships with customers. With CD laddering, it’s really advantageous for them, and it’s really easy for us to do for them. Even our online customers will tend to see them open clusters of accounts, often for different terms. So they have different amounts of funds available at different time periods depending on what their next few years look like.

There are always people available to help them with questions about their certificates of deposit. We have people available every business day from 8 AM to 5:30 PM Eastern Time. There’s a group of people who are ready to answer all of their frequently asked questions.

Our website is a huge resource of information, too. If people are curious, they can go there and look at the frequently asked questions. And if we don’t answer it there, they can get on the phone and talk to one of our experts.

We have branches in East Lansing, Traverse City, and Grand Rapids. Our national footprint is available to anybody in the US by going to our website and visiting the opening section of our website.