How to Build a High-Yield CD Ladder

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Purchasing certificates of deposit (CDs), along with the process of laddering them, have historically been investment strategies favored by people who are on the lookout for lower-risk investing opportunities that can help them earn income over time. Whether you’re new to investing and want to learn the ropes, are looking to diversify your portfolio or want to invest across the board in a relatively safe option, CDs are financial products that are worth looking into.

As you start to get into CD investing, you’ll notice that building a high-yield CD ladder is often an effective strategy to use to maximize your returns. Before you head to your local bank and purchase a CD, however, it’s helpful to learn what a high-yield CD ladder is, what its pros and cons are, and how to build one.