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.