What if we told you there’s a simple way to help make your hard-earned money go even further?
It’s true! A certificate of deposit (CD) ladder is a straightforward savings strategy that can help you earn secure, predictable returns while giving you access to cash at regular intervals.
If your interest is piqued (we’re sure it is!), keep reading to learn:
- What a CD ladder is;
- How to build a CD ladder;
- How a CD ladder works;
- What the benefits of a CD ladder are;
- Why CD ladders are a smart choice for Oregon savers in 2025.
What is a CD Ladder?
Before we explain what a CD ladder is, we need to take a step back and first explain what certificates of deposit are.
What are Certificates of Deposit (CDs)?
Certificates of deposit (CDs) are time-based savings accounts that offer higher interest rates for locking in your funds for a set period of time, typically ranging from a few months to years.
When the CD matures, you can either withdraw your money or reinvest it into a new CD. Because the rate is fixed, you’ll know exactly how much you’ll earn when it matures.
CDs can be an excellent way to save for short- to medium-term needs (e.g., unexpected expenses or large purchases) or for longer-term investments (e.g., retirement savings or college funds).
They're also a good option for people who want stability in their financial planning and aren't interested in taking on riskier investments like stocks.
At Valley Credit Union, our CDs are federally insured up to $250,000 and come with flexible term options and competitive rates. We want to help Oregon savers reach their financial goals with peace of mind.
Make sure to check out our CD Special page to learn about opportunities to earn even greater returns on your investment.
CD Ladder Explained
Think of a CD ladder as a way to build financial rungs.
Instead of investing all your savings in one long-term CD, you divide it among several CDs with different maturity dates, for example, 6 months, 1 year, 2 years, 3 years, and 5 years. This lets you achieve a staggered-payout investment portfolio.
When the first CD matures, you can either cash it out if you need the funds or reinvest it into a new CD at the longest term, maintaining your ladder. This process repeats, ensuring you always have a CD maturing while others continue to earn higher interest.
Depending on your savings goals and risk tolerance, you can start with as few as two CDs and scale up as needed. There’s a fair amount of room to tailor a CD ladder to your means and preferences.
CD ladders are not an especially complex concept at all! And certainly something that’s within reach of most interested investors.
Ladder CD Rates & Dates
The two critical variables for CDs, and therefore a CD ladder, are the rate and/or annual percentage yields (APYs) and the term. The rate/APY tells you how much you’ll earn for locking in your money for the specified term.
To illustrate, here are our current CD rates and terms (October 2025). You’ll see how different term lengths offer different returns. And the longer the duration of your CD, the greater the rate of earnings.
Share and IRA Certificates
| Amount |
Dividend Rate |
Annual Percentage Yield (APY) |
| 6 Month |
1.74% |
1.75% |
| 1 Year |
1.98% |
2.00% |
| 2 Year |
2.23% |
2.25% |
| 3 Year |
2.47% |
2.50% |
| 4 Year |
2.57% |
2.60% |
| 5 Year |
2.67% |
2.70% |
The idea is to start small and build your way up. If you reinvest your CDs, you’ll be able to lock in all future CDs for the 5-year term. This allows you to maximize your return on investment, while also ensuring that every year you’ll have access to funds.
How to Build a CD Ladder
Creating your CD ladder is easy. Unlike other investments, you won’t need to conduct in-depth research or put together complex spreadsheets.
If you’ve decided a CD ladder makes sense for your needs and goals, here’s how you can get started:
Step 1: Determine Your CD Ladder Strategy
You’ll need to decide:
- How much money you want to invest
- How many CDs you want in your ladder
- How long you can comfortably keep funds invested
A common starting point is five CDs with terms ranging from six months to five years.
You’ll also need to do some research at this stage to find the best CD rates/terms for your desired strategy. Several online CD ladder calculators are available to help you play out different investment scenarios.
A CD ladder plan could look something like this:
| Term |
Rate |
APY |
# of CDs |
Amount |
Disposition |
| 6 Months |
0.80% |
0.80% |
1 |
$500 |
Cash Out |
| 11 Months |
2.25% |
2.25% |
1 |
$1,000 |
Cash Out |
| 11 Months |
2.25% |
2.25% |
1 |
$1,000 |
Roll Over |
| 17 Months |
2.50% |
2.50% |
1 |
$2,000 |
Cash Out |
| 17 Months |
3.00% |
3.00% |
1 |
$1,000 |
Roll Over |
You want the maturity dates to be spread out so that you always have a certificate coming up for renewal or cash out. This lets you access cash if and when needed, like to pay a tuition bill in the fall or to fund a large purchase.
If you need any help mapping your CD ladder strategy, feel free to reach out to VCU!
Step 2: Gather Your Funds
Once you know how you want to structure your ladder, you have to figure out where the money to invest will come from.
Pull from savings or other low-interest accounts that could earn more in CDs. For example, you might take $1,000 from a traditional savings account earning 0.02% APY and put it into a 6-month CD to earn 0.80% APY.
Step 3: Purchase Your CDs
CD rates can fluctuate over time. We recommend that you reconfirm that the CD rates, terms, and financial institutions you found in Step 1 are still the best on offer. You may have to tweak your plan (or expectations) a little if the CD market has shifted.
When you’re satisfied with your selection of CDs, you can go ahead and buy them. CDs can be purchased through credit unions, banks, and other financial institutions. It largely depends on which CDs you want to invest in. At Valley Credit Union, you can easily open CDs online or at a local branch.
Step 4: Manage & Maintain Your CD Ladder
As each CD matures, decide whether to withdraw or reinvest. Reinvesting at the longest term available keeps your ladder growing and your returns compounding.
You’ll also need to regularly reevaluate your ladder. Just because you injected an initial sum to build your CD ladder doesn’t mean you have to stop there. You can continue extending your ladder as long as it suits you and your financial goals.
Before you invest further in CDs, in the form of new certificates or by rolling over your existing CDs, make sure to revisit the current CD market. Changes in rates, terms, and sellers could influence your next moves.
What are the benefits of a CD Ladder?
Before stepping onto that first rung, you might be wondering what the advantages of a CD ladder are. Or, how CDs stack up to other savings and investment opportunities.
Here are some of the key benefits of CD ladders that make them so appealing:
- Safety: CDs are a safe investment. You can’t lose money on them, and your money is federally insured up to $250,000.
- Easy-to-Understand: CD ladders are simple and straightforward.
- Predictability: Fixed rates mean you’ll know exactly what your return will be.
- Flexibility: Because one CD matures at regular intervals, you can access funds without breaking all your CDs.
- Higher Returns: CD ladders often earn more than traditional savings accounts.
- Low Maintenance: Once your ladder is built, it runs almost automatically.
Another great thing about CD ladders is how accessible they are. They’re easy to set up because CDs are readily available. And you have lots of options, so you can construct a CD ladder that meets your specific criteria.
CD Ladders vs. Other Savings Options
There are plenty of different ways to save your money. Now that you have a good grasp on the benefits of CD ladders, it’s good to see how they compare with other saving and investing strategies and products.
Compared to other options, CD ladders tend to:
- Have higher yields: Many CD ladder investments offer more favorable rates of return than some stocks or mutual funds.
- Be lower risk: With a CD ladder, you are taking on a lower risk since you’re not investing all of your money in one place or in something that has variable (or potentially no) return.
- Have more flexibility: You can easily add or subtract investments from your CD ladder at any time, clinching peak rates (penalties may apply if you withdraw early).
- Be lower maintenance: Unlike stock or mutual fund investments, a CD ladder doesn’t require you to make regular contributions or take any action to maintain your investment.
Why CD Ladders Are Popular In Oregon
Oregon savers value balance, between growth and security, short-term needs and long-term goals. CD ladders align perfectly with that mindset.
In a state known for its financial cooperatives and community-based banking, credit unions like Valley CU give members a local, trusted way to earn more on their savings. Our CD ladder strategies help Oregonians:
- Secure higher rates through local, member-focused lending.
- Keep funds accessible for big moments (like buying a home or funding college).
- Support a financial institution that reinvests profits into the community.
If you’re looking for a reliable way to grow your savings in Oregon, building a CD ladder with Valley Credit Union is a great place to start.
FAQs About CD Ladders
How much money do I need to start a CD ladder?
You can start small. Many credit unions, including VCU, allow minimum deposits as low as $500 per CD.
How does a CD ladder work when interest rates change?
If rates go up, you can reinvest your maturing CDs at higher rates, which helps your overall returns rise over time. If rates go down, you’ll still have some CDs locked in at higher rates, protecting part of your investment.
How many CDs should I have in my ladder?
Many people start with three to five CDs. More rungs mean smoother access to cash and more diversification across maturity dates.
What happens if I need to withdraw money early?
You can usually withdraw from the next CD that matures soonest. Withdrawing before maturity may result in an early withdrawal penalty, so it’s best to plan your ladder around your anticipated cash needs.
Can I build a CD ladder online?
Yes. At Valley Credit Union, you can open and manage CDs entirely online or visit a local branch if you prefer personal assistance.
Are CD ladders good for retirees?
Absolutely. They offer predictable income and low risk, making them ideal for retirees who want consistent returns without market fluctuations.
Can I build a CD ladder with different financial institutions?
You can, but managing multiple accounts can be cumbersome. Many members prefer the simplicity of keeping all CDs under one roof at their credit union.
What happens when a CD matures?
You can either withdraw your funds or reinvest them into a new CD to keep your ladder going.
Climb the CD Ladder with Valley Credit Union
Ascending the step-stool to greater wealth is every person’s right — but it can be confusing or hard to get started. That’s why VCU is eager to help. It’s our honor and pleasure to assist members in reaching their financial objectives with outstanding service and support, exceptional products, and helpful resources.
Make sure to check out our CD rates and special CDs. Contact us today to learn more about becoming a member and assembling your CD ladder.
About the Author
Katie Clark, Director of Administrative Services
Katie Clark has been at Valley Credit Union since 2011. She serves as the Board Secretary and oversees Human Resources, Marketing and Facilities for the credit union, some even call her the credit union mom. As a CUNA and GoWest HR council member she stays connected with the latest industry happenings. When she’s not in the office she enjoys weekends with family & drinking wine at the Oregon coast.