Why You Should Build Out a CD Ladder for 2026
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A CD ladder is just a group of CDs with different maturity dates.
Instead of putting all your money into one CD, you split it up and stagger when each piece comes due.
For example:
- One CD that matures in 6 months
- One in 12 months
- One in 18 months
- One in 24 months
That's it. No tricks. No special products.
Every few months, one of your CDs matures. When that happens, you decide what to do next.
Why people benefit from this setup
The biggest benefit is optionality.
With a ladder, you're never fully locked in, and you're never fully exposed to whatever rates happen to be at the moment.
If rates stay high, you keep rolling your CDs forward at solid yields. If rates fall, at least part of your money is still locked in at yesterday's better rates. And if you suddenly need cash, something is always coming due.
You don't have to predict the future. You just give yourself regular decision points.
Take a look at current CD options that work well for a simple ladder.
It's a smarter way to use cash you don't need right away
Most people keep too much money in a savings account "just in case."
That makes sense emotionally, but financially it's often inefficient. Money that you won't touch for a year or two could be earning more.
A CD ladder lets you separate your cash into buckets:
- Money you truly need anytime stays in savings
- Money you can leave alone earns more in CDs
You still have access. You just don't give up yield for unnecessary flexibility.
See today's best CD rates and compare ladder-friendly terms.
It smooths out rate changes instead of forcing a guess
Trying to time interest rates is frustrating. If you lock everything in now, you worry rates might rise. Stay fully liquid, and you risk watching yields drift down.
A ladder splits the difference.
You're constantly reinvesting small pieces over time, which means you naturally average into whatever the rate environment becomes. Some CDs will look like great timing. Some won't. The system still works.
Why this matters heading into 2026
Cash has been unusually generous the last couple of years. That won't last forever.
As rates eventually come down, people who kept everything in overnight accounts will feel it immediately. People with a CD ladder won't.
They'll still have chunks of money earning yesterday's higher rates, while new CDs roll forward gradually at whatever the market offers next.
That's not about chasing yield. It's about reducing regret.
Compare today's best CD options to see what fits your timeline.
How to build one without overthinking it
You don't need a complex plan.
Take the amount of cash you know you won't need for at least six months. Split it into equal parts. Choose a few different CD terms. Stagger the maturities.
When a CD matures, pause and decide:
- Roll it into a new CD
- Move it back to savings
- Use the cash
That decision repeats every few months. The ladder builds itself.
The real payoff
A CD ladder doesn't just earn interest. It buys peace of mind.
You're earning more than a basic savings account, without feeling trapped. You're protected if rates fall, without betting everything on today's yields. And you're always close to your money if life changes.
For 2026, that kind of quiet flexibility is hard to beat.
Our Research Expert
Jake FitzGerald is a full-time Editorial Strategist and Personal Finance Writer at Motley Fool Money, leading content production and distribution while also writing about credit cards, bank accounts, and other financial products. He has more than a decade of experience editing and shaping financial content to give readers clear, trustworthy money advice. His work focuses on delivering practical insights that empower people to make smarter financial decisions. Off the clock, he’s a fan of college football tailgates and still loyal to his favorite putter -- despite what his short game suggests.