Want to get the most from a certificate of deposit? Perhaps you should explore a CD ladder.
A CD ladder involves setting up CDs at different maturity periods. This investment strategy allows investors to take advantage of interest rates spread out over time. Once the first CD matures after a year, it can be reinvested as the ladder's new rung.
If you're interested in how a CD ladder works, a number of websites offer good information on the topic. Here are a few sites:
--CDRateGuide.com: Discusses the basic approach to building a CD ladder portfolio. http://www.cdrateguide.com/investor-info/cd-ladder/
--Investopedia: Covers variety of CD ladder topics, including ladder basics and benefits. http://financialedge.investopedia.com/financial-edge/0710/Save-Smart-Wit...
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--MainStreet: Explains how a CD ladder works, and how to set up a ladder. http://www.mainstreet.com/article/money/investing/building-cd-ladder-ste...
--Ratelines.com: Provides brief CD ladder overview and investment benefits. http://www.ratelines.com/tag/certificate-of-deposit/
--The Street: Focuses on developing a strong CD ladder strategy. http://www.thestreet.com/story/10463459/1/setting-the-strongest-cd-ladde...
