A CD ladder splits savings across certificates of deposit with staggered maturity dates, so some money becomes available regularly while the rest earns higher rates.

Certificates of deposit typically pay more than regular savings accounts in exchange for locking money away for a fixed term.

A ladder balances return and access: short rungs mature soon for emergencies, while longer rungs earn better rates for money you are less likely to need.

Keep a separate instant-access buffer for immediate emergencies, and use the ladder only for the portion of savings you can wait a few months to reach.

Review and renew maturing CDs regularly, comparing rates each time rather than automatically renewing at a lower rate.