Smart ways to maximize your CD strategy

Certificates of deposit (CDs) offer guaranteed returns with minimal risk — making them a reliable way to grow your savings. But if you’re only opening a single CD, you could be missing out on smarter strategies that balance access, yield, and flexibility. Whether you’re new to CDs or looking to optimize your approach, here are four proven techniques to help you best meet your financial goals while making the most of today’s competitive rates.

CD laddering strategy: A balanced climb

CD laddering involves opening multiple CDs with staggered maturity dates — for example, 6, 12, and 24 months. Each term acts like a rung on your financial ladder, helping you climb toward better returns while maintaining access to your funds along the way.

Here’s how a simple ladder might look:

• Start with a short-term CD: A 6-month CD offers quick access and a strong introductory rate — ideal for liquidity.
• Add a mid-length CD: A 12-month CD gives you a solid return with the flexibility to reinvest sooner.
• Finish with a long-term CD: A 24-month CD locks in a competitive rate for longer-term growth.

As each CD matures, you can reinvest into a new long-term CD, adding new rungs and keeping the ladder going — potentially capturing rising rates over time. This strategy is perfect for savers who want a mix of yield and accessibility without locking up all their funds for years.

CD barbell strategy: Rate watching with flexibility

The CD barbell strategy places your funds at both ends of the term spectrum — short-term and long-term — skipping the middle. For example, you might split your investment between a 6-month CD and a 5-year CD.

Why use this approach? The short-term CD gives you frequent access to cash and the ability to pivot if rates rise, while the longer-term CD offers stability by locking in a rate for the road ahead. It’s a way to stay flexible while securing strong returns — giving you short-term agility and long-term growth in one smart move. Like the ends of a barbell, this strategy balances liquidity and yield, helping you stay responsive without sacrificing earning potential.

This approach works well for rate watchers who want to stay nimble while still earning solid returns.

CD bullet strategy: Targeted timing for big goals

Planning for a major expense — like a wedding, home purchase, or tuition payment — in a few years? The CD bullet strategy focuses on timing your CDs to mature around the same date.

Let’s say you want to buy a house in five years:

• Open a 5-year CD today.
• In two years, open a 3-year CD.
• In four years, open a 1-year CD.

By the fifth year, all three CDs mature together, giving you a lump sum with interest earned across the board. This strategy is ideal for goal-based savers who want to maximize returns without needing access until a specific date.

Adaptive CD strategy: Rolling with your needs

Not every saver wants a rigid structure — and that’s OK. If your strategy is to reassess your options each time a CD matures and reinvest based on current rates, term lengths, and life goals, you’re practicing what we call the adaptive CD strategy. It’s a flexible, personalized approach that works especially well during transitional life stages — like paying for education, growing a family, or navigating costs in retirement — when your financial priorities may shift. This “your way” method lets you stay responsive to rate changes while keeping your savings aligned with what matters most to you.

Add a layer of liquidity

To build even more flexibility into your savings strategy, consider starting with a higher‑earning liquid account — like our Value Edge Money Market account. It offers competitive rates with easy access to funds, giving you a smart cushion beneath your CD ladder or alongside your target date. Whether you're reinvesting, waiting for the right opportunity, or simply keeping options open, this liquid layer adds stability and earning power to your overall plan.

Bonus tip: CD IRAs and FDIC protection

You can apply the same layering strategies — laddering, barbell, bullet, or adaptive — to CD IRAs, which offer the added benefit of tax advantages for retirement savings. It’s a smart way to grow your nest egg with predictable returns.

And if you are investing large sums and concerned about FDIC insurance limits, ask your banker to refer you to an expert on CDARS^® (Certificate of Deposit Account Registry Service). This program allows you to access multimillion-dollar FDIC coverage by distributing your deposits across a network of participating banks — all while working directly with just one institution. It’s a powerful tool for high-net-worth savers who want both security and simplicity.

Final thoughts

CDs offer a safe, predictable way to grow your savings — but with a little planning, you can maximize your earnings. Whether you build a ladder, balance a barbell, aim with a bullet, or create your own approach, these strategies help you take advantage of today’s rates while staying aligned with your financial goals.

Ready to get started?

 You can open select CDs online — just check out our current rates and choose the term that fits your strategy. Prefer to talk it through in person? Visit your nearest UBT branch and let our team help you build a smart savings plan that works for you.