Family Trust Blog

Imagine having a way to safely store and grow your money. No risks, no gimmicks, just more money after a specific amount of time. Certificates (banks might call them certificates of deposit or CDs) are becoming a popular option for people looking for a risk-free way to invest. They have higher earnings compared to regular savings accounts, with certificate rates now reaching an impressive 5.5% for 24-month certificates. Your money is safe, thanks to being insured by the National Credit Union Administration (NCUA) up to $250,000.

Hesitant about not being able to access the money until the term ends? That’s where laddering can help.

Meet Laddering - Your Investment Buddy

Laddering is an investment strategy where a person  invests money in multiple certificate accounts over a variety of terms. Say you've got $5,000 you want to grow. Instead of putting it all into one 60-month certificate, mix it up with $2,000 in a 12-month certificate, and $3,000 in a 36-month certificate. This way, some of your terms will end earlier, allowing you more flexibility.

Each person has their own financial goals and amount to invest, so everyone’s situation is unique. Some things to keep in mind are: determine how much should be invested into each certificate account, what terms are ideal for you, what the rate will be, and have an emergency plan in case something unexpected pops up. Pick terms that high-five your current cash status and dreams of future moolah.

Have questions about certificates?

We’re here to help. Find out more about our certificates here or use the chat feature in the bottom right corner of familytrust.org.