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1 Calculator assumes that as each CD in the ladder matures, it is re-invested for the term, rate and Annual Percentage Yield (APY) associated with the longest term CD in the laddered portfolio
illustrated below. Calculator assumes that rates do not change during the period and that interest is reinvested. Interest is calculated assuming an
equal number of days in each month. Actual amounts earned may vary.
The APYs do not include bonus for Advantage customers.
CD rates are fixed once the CD
is opened. Rates are subject to change daily. Penalties may apply for early withdrawal.
The results provided by this calculator are intended for comparative purposes only and accuracy is not guaranteed. Bank of America and its
affiliates are not tax or legal advisors. This calculator is not intended to offer any tax, legal or financial advice and does not assure the availability of or your eligibility for any specific product offered by Bank of America, its affiliates or any other financial institution. The terms and conditions of products offered by financial institutions will differ and may
affect the results of the calculator. Please consult with qualified professionals to discuss your situation.
How to maximize your laddering strategy over time
As each CD matures you should consider reinvesting in a new CD with a term equal to the longest term CD. This strategy allows you to take advantage of the higher rates normally associated with longer-term CDs while maintaining more frequent access to part of your funds.
For example:
- If you established a ladder with 6-month, 12-month, 18-month and 24-month terms, when the 6-month CD matures, invest the funds in a new 24-month CD.
- Similarly when the 12-month CD matures, invest the funds in another new 24-month CD, and so on.
- At the end of two years you’ll have four, 24-month CDs with a CD maturing every six months.
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