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CD Laddering Strategy Explained — Lock in Higher Rates While Keeping Your Money Accessible

With the Federal Reserve cutting interest rates steadily through the second half of 2025 and into 2026 — bringing the federal funds rate down from 4.33% to 3.64% as of January 2026 — savers face a dilemma. High-yield savings account (HYSA) rates are falling in lockstep, yet certificates of deposit still offer attractive fixed rates north of 4% for many terms. The question is how to capture those rates without locking up all your cash for years at a time. The answer, for many savers, is a CD ladder: a simple strategy that spreads your deposits across multiple maturities so you get the benefit of higher long-term rates while maintaining regular access to a portion of your money. It is one of the most time-tested techniques in personal finance, and the current rate environment makes it particularly compelling. In this guide, we break down exactly what a CD ladder is, why now is an opportune moment to build one, how to construct a ladder step by step with a real-dollar example, how the strategy compares to a standard high-yield savings account, and the most common mistakes to avoid along the way.

CD ladderCD laddering strategycertificate of deposit

High-Yield Savings Accounts Explained — How HYSAs Work, Best Rates, and How to Choose One in 2026

With the Federal Reserve holding its benchmark rate above 3.5% heading into 2026, high-yield savings accounts continue to offer savers returns that dwarf the 0.01% to 0.50% APY available at most traditional banks. For anyone parking cash in a standard savings account, the gap between what they earn and what they could earn has rarely been wider — top online HYSAs still advertise rates of 4.50% to 5.00% APY, meaning a $10,000 deposit generates $450 to $500 in annual interest rather than the $1 to $50 it would earn at a brick-and-mortar institution. The current environment creates an unusual window. The Fed began cutting rates in September 2025 after holding the federal funds rate at 4.33% for much of the year, and the benchmark has since drifted down to 3.64% as of January 2026. HYSA yields have followed, but the best accounts still pay significantly more than inflation — the Consumer Price Index shows year-over-year price increases running at roughly 2.7%, which means top-tier savings accounts are delivering positive real returns. That is not something savers have been able to count on for most of the past two decades. This guide breaks down exactly how high-yield savings accounts work, why their rates move the way they do, what the current landscape looks like, and how to evaluate accounts so you can put your cash to work without taking on investment risk.

high-yield savings accountHYSAbest savings rates 2026