Including a certificate into your savings plan is one of the easiest and most effective ways to make your money work harder for you. With guaranteed returns and competitive rates, certificates are a safe, low-risk option for growing your savings. But what if you want the benefits of long-term certificates without tying up all your funds for years? That's where certificate laddering comes in.

What Is Certificate Laddering?

Certificate laddering is a simple and smart strategy that helps you take advantage of higher Annual Percentage Yields (APYs) while keeping portions of your money accessible. Instead of putting all your money into a single certificate with one maturity date, you divide your savings across several certificates with staggered terms.

Here's how it works: The first part of your ladder begins with smaller steps shorter-term certificates that mature more quickly. This ensures you have access to a portion of your cash each year. Over time, as each certificate matures, you reinvest the funds into longer-term certificates. Longer terms typically offer higher APYs, so your money continues to grow at a better rate.

The beauty of this strategy is that you'll always have a certificate maturing on a regular schedule, providing you with flexibility and liquidity when you need it.

The Power of Locking In Higher Rates

Another key benefit of certificates—especially long-term ones—is the ability to lock in a higher interest rate for the entire term of the certificate. This can be incredibly valuable during times when interest rates drop quickly. While savings or money market accounts may have decreasing rates, a certificate opened during a high-rate period continues to earn a higher return until maturity.

This feature is particularly important for retirees or those approaching retirement, who may be more reliant on fixed-income strategies. By securing a guaranteed return over several years, you can shield a portion of your savings from declining rates and ensure more predictable income or growth.

How to Build a Certificate Ladder in 3 Steps

Let's break it down with a real-world example:

12-Month Certificate

24-Month Certificate

36-Month Certificate

48-Month Certificate

60-Month Certificate

Get Started

By using this method, you can achieve the long-term returns of high-yield certificates while keeping some of your cash within reach.

At Langley, we make it easy to grow your savings with competitive rates on both short and long-term certificates. Whether you're new to saving or looking for a smart way to optimize your funds, a certificate ladder can help you reach your financial goals.