Scared of Falling Interest Rates? Here's Where to Put $10,000 in October 2025
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The Federal Reserve recently cut interest rates for the first time this year, while also projecting a drop in rates into 2027. Certificate of deposit (CD) rates are already on the decline -- and they'll likely only fall further for the next few years.
That means the next few weeks are huge for anyone looking to save with CDs. I recommend building a CD ladder -- the perfect way to earn more on your cash while still keeping access to some of your money. Here's how.
What's a CD ladder (and how does it work)?
Put simply, a CD ladder involves divvying up your savings into CDs of different term lengths. For example, instead of putting $10,000 into a single CD, you could put $2,000 into CDs of six months, 12 months, 18 months, 24 months, and 36 months.
That's a great idea because:
- CDs provide a guaranteed rate of return.
- Putting money into CDs of different lengths will give you access to a portion of your cash at regular intervals.
- CD ladders offer flexibility -- once a CD matures, you can either add to the ladder by reinvesting it or take your cash (and earnings) back.
In the previous example, once your six-month CD matures, your money becomes available to spend or reinvest -- then the 12-month CD, then the 18-month CD, and so on.
Want to earn high APYs while getting regular access to your cash? Build a CD ladder with some of our favorite CDs today.
Why a weighted CD ladder?
With interest rates expected to keep falling, you might think about building a "weighted CD ladder," where you invest more in longer-term CDs than shorter-term CDs.
Here's how you might split up $10,000 into a weighted CD ladder:
| CD Term | Amount | APY | Interest Earned |
|---|---|---|---|
| 6 months | $1,000 | 4.00% | $20 |
| 12 months | $1,000 | 4.00% | $40 |
| 18 months | $2,000 | 4.00% | $121 |
| 2 years | $3,000 | 4.00% | $245 |
| 3 years | $3,000 | 4.00% | $375 |
That's a total of $801 in interest by the time the ladder matures -- more than you'd get by opening short-term CDs at lower and lower rates.
And just like a regular CD ladder, you'll also get access to a portion of your savings every few months.
Don't wait until rates fall further
The great thing about CD ladders is their versatility -- you can space them out however you prefer and invest as much as you want in each one.
To protect your money against impending rate cuts, a long-term weighted CD ladder is a great way to go. The most important thing, though, is to start now, before CD rates are in the tank.
If you do, you can lock in high APYs that might not be available again for years.
Read to get started? Check out our full list of the best CDs available now and build your CD ladder today.
Our Research Expert
Ryan Wilcox is a full-time Personal Finance Writer at Motley Fool Money, covering credit cards, bank accounts, investing, auto insurance, and other personal finance topics. Ryan has been writing about credit cards and savings since 2022. Before joining Motley Fool Money, he was a full-time writer at The Points Guy, where he focused on maximizing credit card rewards and travel strategies. He holds a bachelor’s degree in English and American History from the University of North Carolina at Chapel Hill, where he also spent four years reporting for The Daily Tar Heel. With a background in both journalism and consumer finance, he brings a clear and thoughtful voice to money topics. Outside of work, Ryan is likely reading, writing, or updating his Letterboxd account.