What is "certificate laddering” and why could it be a good idea?

“Laddering” means buying several certificates at once for different terms. Laddering your certificates can allow you to increase your liquidity while taking advantage of higher rates. Certificates for longer terms like 60 months usually have higher rates than shorter term certificates.

Start by buying several savings certificates at one time, each with a different maturity date. Each time one of your certificates matures, you can roll it over into a new certificate with a longer term and higher rate.