Saving by using certificates of deposit, or CDs, can be a low-risk way to diversify and grow your funds. If you are attempting to accumulate money for a large expense, such as a down payment, there are various strategies you may consider to make CDs work for you.


Laddering is a popular strategy to get the maximum benefit from CDs. You simply buy CDs that mature at staggered dates, then reinvest your money in longer-term CDs. For example:  You buy five-year, four-year, three-year, two-year, and one-year CDs all at the same time. Each time a CD matures, simply reinvest it in a five-year CD. This strategy allows you to take advantage of higher rates if the opportunity arises, and gives you the flexibility to "get off the ladder" and use the cash that becomes available every year if you need to.

Reverse Laddering

Reverse laddering means you start by purchasing just the five-year CD, for example, then purchase a four-year CD the next year, a three-year CD the next, and so on. All your CDs will mature at the same time. This strategy allows you to potentially take advantage of the higher interest rates you can get for a CD as opposed to the typically lower interest rate offered by a savings account, and have multiple CDs maturing at once.

Use our CD Calculator to find out how much interest you can earn with a Popular Direct CD. We have term lengths that can work for everyone.

Consider using either laddering strategy as an effective way to get more bang for your saved bucks! Apply today for a Popular Direct CD and get your saving started!

