CD Ladders Model CD Ladders - Fidelity

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Model CD Ladders

Short-term CDs have the potential to provide higher rates of return than cash holdings.

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Advantages of CD Ladder investing

Opportunities for higher yields In exchange for being less liquid than cash held in checking, savings, or money market accounts, short-term CDs typically offer higher rates of return. FDIC insurance guarantee The CDs we offer are FDIC insured. Since we offer CDs from many different issuers, you can invest more than $250,000 across different issuers and still be fully covered by FDIC insurance. Auto Roll Let your CDs return their maturing principal into your account, or, with Auto Roll, elect to automatically invest the maturing principal in another CD whose term to maturity is equal to the length of the ladder (i.e. 1, 2, or 5 years).

CD Ladders

Model CD Ladders provide an easy way to invest in multiple Certificates of Deposit (CDs) at a time, blending longer-term CDs with shorter-term CDs. By selecting one of the three models shown below you can easily filter our new issue CD inventory using a set of objective screening criteria to model your own CD Ladder (requires login).
about how Model CD Ladders work and the screening methodology deployed.

How it works

Choose a Model CD Ladder: 1-year, 2-year, or 5-year. Select the Fidelity account in which you want to build your Model CD ladder and enter the total amount you want to invest. Choose whether you want the maturing positions in your CD Ladder to be returned to cash or use Auto Roll to automatically reinvest in new CDs at the end of the ladder. Review the results and edit as needed before you buy your ladder. Maintaining your CD ladder
Once you have purchased your CD ladder, the CDs will be viewable in your Positions listings for the specific account. Your CD ladders may also be viewable in the dedicated to all bond and CD ladders held. From the ladder page, you will be able to review which of your CD ladders have the Auto Roll functionality enabled and turn it off at any time. Read for more information.

Next steps

Displayed rates of return, including annual percentage yield (APY), represent stated APY for either individual certificates of deposit (CDs) or multiple CDs within model CD ladders, and were identified from Fidelity inventory as of the time stated. For current inventory, including available CDs, please view the tab. For the purposes of FDIC insurance coverage limits, all depository assets of the account holder at the institution issuing the CD will generally be counted toward the aggregate limit (usually $250,000) for each applicable category of account. FDIC insurance does not cover market losses. All the new-issue brokered CDs Fidelity offers are FDIC insured. In some cases, CDs may be purchased on the secondary market at a price that reflects a premium to their principal value. This premium is ineligible for FDIC insurance. For details on FDIC insurance limits, visit . A CD ladder, depending on the types and amount of securities within it, may not ensure adequate diversification of your investment portfolio. While diversification does not ensure a profit or guarantee against loss, a lack of diversification may result in heightened volatility of your portfolio value. You must perform your own evaluation as to whether a CD ladder and the securities held within it are consistent with your investment objectives, risk tolerance, and financial circumstances. To learn more about diversification and its effects on your portfolio, contact a representative. The CD ladder strategies displayed are provided for educational purposes and are not intended to serve as the primary basis for your investment, financial or tax planning decisions. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss. Your ability to sell a CD on the secondary market is subject to market conditions. If your CD has a step rate, the interest rate may be higher or lower than prevailing market rates. The initial rate on a step-rate CD is not the yield to maturity. If your CD has a call provision, which many step-rate CDs do, the decision to call the CD is at the issuer's sole discretion. Also, if the issuer calls the CD, you may obtain a less favorable interest rate upon reinvestment your funds. Fidelity makes no judgment as to the creditworthiness of the issuing institution. 830320.4.0

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