A CD is a special type of deposit account with a bank or financial institution that typically offers a higher rate of interest than a regular savings account. For consumers and investors, CDs are a low-risk investment; for banks, they are a debt instrument.
A CD ladder is a collection of CDs bought at regular intervals so that they’ll mature at regular intervals as well. The biggest reason for creating a ladder is that CDs often return a percent or two higher than your savings account. Check out this infographic below to find out how you can get started!