CD laddering is a strategy that grows your money at higher interest rates while providing some liquidity. For example, rather than deposit $60,000 for a one-year period and renewing each year at a lower one-year rate, you could create a three-year ladder and put $20,000 in a one-year CD, $20,000 in a two-year CD and $20,000 in a three-year CD at the higher interest rates. After the first year, you take the one-year CD and purchase a new three-year CD. After the second year, you take the initial two-year CD and purchase a new three-year CD, and do the same with the initial three-year CD. Starting in year four, your three CDs grow at a three-year rate but you also have access to 1/3 of your money each year without penalty should you need it. Use this calculator to determine the additional interest you could earn with a CD laddering strategy.