Are CD Ladders Worth It in 2026?

A "CD ladder" is one of the best ways to save money in 2026 — and even if the phrase sounds complicated to you, it's actually super simple.

One of the (usual) downsides of certificates of deposit, or CDs, is that they lock up your money for a given period of time. CD ladders get around that problem, at least partially, so they make for a great blend of earnings and flexibility on your cash.

Interested? Here's your straightforward guide to building a CD ladder in 2026.

What is a CD Ladder?

Put simply, building a CD ladder is just opening a number of certificates of deposit (CDs) at the same time, but with different term lengths.

Let's say you have $12,000 you want to invest in CDs. You could put it all in one CD of a single term length, and lock up all of your money for that entire period.

Or you build a CD ladder like this: $4,000 in a 1-year CD, $4,000 in a 2-year CD, and $4,000 in a 3-year CD.

By dividing your money across CDs that mature at different times, you're giving yourself regular access to some of your cash — while the rest of your cash keeps earning. Then, as each CD matures, you can either 1) withdraw the money or 2) open up a new CD to keep the ladder going.

CD ladders are great because:

• They still offer a guaranteed rate of return.
• They give you access to part of your money at regular intervals.
• They're more flexible than a single, bulky CD. Whenever a "rung" of your ladder matures, you can either reinvest it or take the money and run.

Consider This Before You Get Started

CD ladders can be a great savings tool, but there are a few things to think about before you get started:

• Early withdrawals will cost you. Pulling money out before a CD matures will usually lead to an early withdrawal fee. There are CDs without those fees, but they tend to have lower APYs. For that reason…
• Planning ahead matters. Don't deposit money you think you'll need in the short term. CDs aren't built for, say, your emergency fund. They're better for medium-term cash, like if you're saving up for a big purchase or vacation.
• CDs take discipline: Even with the flexibility of a CD ladder, you'll still need to keep your cash locked up to keep it earning. That takes a bit of discipline.

Check out our CD ladder calculator to learn more about how they can benefit you.

This article was written by Ryan Wilcox from The Motley Fool and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.