CD laddering is a method of investing with secure and safe bank products that allows you to shield your investments from significant interest rate fluctuations.  To create a CD ladder, you buy several bank CDs with varying lengths and interest rates.  Laddering is an attempt to hedge against market volatility in interest rates.  If CD rates go up, the portion of the CD ladder that’s in short term CDs will mature sooner and the funds can be invested it in a better CD rate.  If interest rates go down, the longer term CDs remain invested at the higher rates.

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