CD Laddering :: TIAA Bank

Step-by-step

CD ladder basics

A CD ladder is a strategy in which you open multiple CDs that mature at staggered intervals. This can help you compound your earnings, generate a steady stream of income and gain consistent access to your money.

Create your ladder

See how much your money can do

Calculate how much you could potentially gain with a CD ladder versus renewing a single 1-year CD for the same amount of time. Choose the CD term you would like to use to build your ladder, and enter your deposit amount. Keep in mind, the term you select does not indicate the timeframe of the ladder; it indicates the term you want all of your CDs to ultimately roll into.

In the know

Quick answers to common questions

Like all CDs, including those within a CD ladder structure, your principal deposit will only become available once your CD matures. Interest can be withdrawn at any time, but doing so will reduce your future earnings and APY because you lose the advantage of compounding interest.

Keep in mind, because your CDs will automatically renew at maturity for the same term and at the then current interest rate and APY, you will need to set maturity instructions for each CD online or by phone to continue building your ladder.

You will need to set the maturity instructions for each of your CDs online or by phone to continue building your ladder. Otherwise, each CD will automatically roll over at maturity for the same term and at the then current interest rate and APY.

For example, if you wish to set up a ladder that runs for 6 years, for each of your 1-, 2- and 3-year CDs, you’ll need to provide maturity instructions to roll each of them over into new 3-year CDs upon maturity.

Yes, like all deposit accounts at TIAA Bank, our CDs, including those in a CD ladder structure, are FDIC insured up to the standard $250,000 per ownership category. For more information, visit our FDIC Insurance page online.

The CDs in your CD ladder are not taxed any differently from any other deposit account. This means that the interest you earn from CDs is considered taxable income by the IRS, unless you hold the CD in a retirement account such as an IRA. For tax purposes, we will send you an annual 1099-INT listing the interest income from the CD. Please consult a tax advisor for any questions you may have.

CD LADDERING 101

Step up to a better savings strategy

Step-by-step

CD ladder basics

Step 1 — Distribute your money equally into CDs with increasing terms

Step 2 — Roll over your principal and interest

Step 3 — Continue building your ladder

Step 4 — Take advantage of your ladder

Create your ladder

See how much your money can do

In the know

Quick answers to common questions