Build a CD Ladder Strategy
Calculate returns from a CD ladder — stagger maturity dates for regular access to funds while earning higher rates.
Strategy
Split across multiple FDs: 6m, 1yr, 2yr, 3yr, 5yr। As each matures: reinvest in longest tenure। Result: regular liquidity + higher rates। SBI, HDFC: 6.5-7.5%। Senior citizen: +0.5% extra। Section 80C: 5-year tax-saver FD (₹1.5L limit)।
vs Debt MF
FD: guaranteed, taxed at slab। Debt MF: market-linked, also slab rate now। FD simpler, MF potentially higher returns।
The best time to build a CD ladder is when the yield curve is steep (long rates much higher than short rates). The worst time is when the curve is inverted (short rates higher). Check current rates at bankrate.com or depositaccounts.com before committing — rate environments change frequently.
