Certificate ladders offer a balance between liquidity and returns. By diversifying your investment across multiple certificates with increasing terms, you can capture the typically higher yields of longer-term certificates without forgoing periodic access to funds.
How does it work? A one-year ladder, for example, may include four certificates with three, six, nine and twelve-month terms. As each certificate matures, it's reinvested into the longest-term certificate. Then, after one year, you'll have quarterly access to a portion of your investment while earning the typically higher returns of longer-term certificates. And remember, if your plans change, reinvestment in your ladder is always optional.
Use calculator below to visualize this strategy in action. Choose one of the sample ladders or customize from scratch. Note that the default rates are for illustration purposes only. Please contact Via Credit Union for current rates and to confirm certificate availability.
Quickly design a ladder specific to your time horizon.
Select a sample ladder below and customize as needed with your estimated investment and rates.
- One Year - Four $5,000 certificates that mature in three-month intervals.
- Two Years - Three $8,000 certificates that mature at six months, one-year, and two years.
- Three Years - Three $10,000 certificates that mature in one-year intervals.
- Four Years - Four $10,000 certificates that mature in one-year intervals.
- Five Years - Five $10,000 certificates that mature in one-year intervals.
The bolded example is the current selection. Click it again to start over with default figures.
Certificate One
Certificate Two
Certificate Three
Certificate Four
Certificate Five
Estimated Value After *
0
* This calculator and estimate is for illustration purposes only and assumes that rates don't change over 0.
Certificate Values at Maturity
One advantage of a certificate ladder is its flexibility. As opposed to investing in a single long-term certificate to maximize yield, each step of the ladder offers the opportunity to withdraw your funds without penalty.
If you choose to withdraw rather than reinvest in the certificate ladder, here are the values of each certificate at maturity: