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CD Ladders: A Steady Savings Strategy for an Unsteady Economy

cd laddersA simple, low-risk way to protect and grow your savings in 2025.

From rising interest rates and tariff uncertainty to inflation and talks of a potential recession, many people feel uneasy about the economy’s future, and understandably so. In times like these, it’s natural to wonder: Where should I keep my money? What’s safe? What will still grow?

At Minnesota First, we’ve helped generations of customers navigate economic uncertainty with safe, predictable, and flexible solutions. One strategy we’re discussing more often with customers today is the CD ladder, a savings approach that offers reliable growth without the risk of market swings.

What Is a CD Ladder?

A CD ladder is a structured way to save using multiple Certificates of Deposit (CDs) with staggered maturity dates. Rather than putting all your money into one long-term CD, you spread your funds across several terms, such as 6, 12, 18, and 24 months. As each CD matures, you decide whether to reinvest, use the funds, or adjust the strategy to fit your current goals.

CD ladders provide a rhythm to your savings. You gain access to your funds in intervals while the rest continues to earn interest, making it easier to plan for future needs while keeping your money growing safely behind the scenes.

Why It Makes Sense Right Now

We’re in a season of economic unpredictability. Tariff threats are starting to impact supply chains, inflation continues to stretch household budgets, and the markets are experiencing sharp ups and downs. In this environment, locking in a guaranteed return with zero market exposure can offer welcome peace of mind.

With CD rates still higher than traditional savings accounts, this is a rare opportunity to grow your money safely. Minnesota First offers CD terms from as short as 3 months to as long as 5 years. For terms 12 months and over, interest is paid quarterly, and your funds continue to earn interest during the 10-day grace period after your CD matures.

What a CD Ladder Looks Like in Practice

Let’s say you want to save $20,000. Rather than putting the full amount into a single 5-year CD, you split it into four $5,000 CDs with staggered terms: 6, 12, 18, and 24 months.

Every six months, one of those CDs matures. If you need the money, it’s available. If not, you can roll it into a new CD, possibly at an even stronger rate. This savings strategy creates a cycle of steady, predictable access to your money while maximizing growth.

It’s a great option for savers who want to stay flexible without sacrificing performance.

Why Savers Like You Are Turning to CD Ladders

This strategy is especially appealing if you’re:

  • Nearing retirement and want a predictable income
  • Saving for a considerable expense, like tuition or home improvements
  • Building a short- or mid-term plan that doesn’t rely on market performance

CD ladders are a practical way to take control of your savings during times of uncertainty, as you’re not locked out of your money for years. You’re not watching market headlines with anxiety. You’re following a plan customized to support your financial goals, no matter what the economy does next.

What to Expect from Minnesota First

Opening a CD account with Minnesota First is easy, and our team is here to ensure it stays that way. We treat you like an individual, not a number, and take the time to tailor your options to meet your financial needs.

Here’s what we offer:

  • CD terms from 3 months to 5 years
  • Competitive, fixed interest rates
  • Flexible deposit options starting at just $500
  • Quarterly interest payments on CDs over 12 months
  • A 10-day grace period at maturity
  • All CDs FDIC-insured up to $250,000

We also offer Special Certificates of Deposit for larger balances starting at $5,000 with the same great features. And if you want to keep part of your funds more accessible while still earning strong interest, our Premium High Yield Savings Account complements your CD ladder with no monthly fees and tiered interest rates based on your balance.

A Savings Strategy That Moves with You

At Minnesota First, we know that no two financial journeys are alike. That’s why we take the time to understand yours and help you build a plan that works not just today but long-term.

Let’s talk about whether a CD ladder is the right fit for you. Our team is ready to help you explore your options and build a plan that puts you in control of your financial future.

 

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