- Certificate Account Overview
- Certificate Account Ladder Calculator
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By “laddering” your certificate account maturities and amounts, you can ensure that cash is available whenever you need it and still take advantage of higher annual percentage yields offered with longer terms. When you “ladder” your certificates you’ll avoid unnecessary penalties that occur from cashing out a certificate before its maturity. Our certificate account ladder calculator examines the benefits of investing in a series of staggered maturities to help you achieve better liquidity in case of emergency or projected need.
To illustrate, consider this example opening five $5,000 certificate accounts instead of one $25,000 certificate account:
- Year One: Open 5 certificate accounts, each for $5,000 for 1, 2, 3, 4, and 5-year terms;
- Year Two: When the 1-year comes due, open another 5-year;
- Year Three: When the 2-year comes due, open another 5-year;
- And so on, so that you essentially have a certificate account maturing every year.
With the above, you’ll have access to some of your money at shorter intervals while still being able to take advantage of higher interest rates offered on longer term certificate accounts.