Long-term savings. Short-term access.
When it comes
to savings, having access to your money is just as important as earning high
interest rates. While CDs provide a low-risk investment with a reliable
return, short-term CDs don’t tend to offer a high rate like long-term CDs —
which tend to have higher rates — but tie your money up for too long. That’s
where CD laddering comes in. By opening several CDs with staggered maturities,
you can take advantage of higher rates with longer-term CDs, while enjoying
added access to your money with shorter-term CDs. So, enjoy the best of both
worlds, with CD laddering.
how laddering fits your savings strategy.
Create a custom ladder by
dividing your money across multiple CIT Bank CDs with varying terms.
Here's how it works:
First, decide how much money you have to ladder.
For this example, we’re starting with $75,000.
your money across several CIT Bank CDs with short- and long-term maturities.
We chose 1-, 2-, and 3-Year Term CDs, so that one CD matures annually over
the next three years.
When your first CD matures, the money
is available for any plans or emergencies. Use what you need and reinvest the
rest. Or reinvest the entire balance into a new CD equal to the longest term in
your ladder, for this example, a 3-Year CD.
As your next CD matures, repeat the
process. By continuing to do this year after year, you can maintain access to
your funds while taking advantage of current market rates on long-term CDs.
Once all of your CDs have been reinvested
into the longest term on your ladder (in this example, a 3-Year CD) they will
automatically renew at maturity to keep your ladder going. If needed, you can
still access your funds every year.
Use any CIT Bank CD to build your ladder.
Get low minimum deposits and terms from six months to five years.
Increase your rate once if our rates go up. Add to your
Increase your rate once should
our rates go up.
Earn higher interest with an
initial deposit of at least $100,000.
This information is made available to you as a self-help tool for your independent use and is not intended to provide investment advice. We cannot and do not guarantee its accuracy and applicability to your individual circumstances. All examples are hypothetical and are for illustrative purposes. Please consult with a financial advisor for a solution suitable for your needs.