Using a CD Laddering strategy with 4 initial investments of $21,810 over varying maturities and interest rates you could accumulate $87,969 after taxes compared to $99,508 with a single $87,240 CD reinvested each year at the 12 month rate. This represents $-11,538 in additional after-tax interest savings. <div id="chart1Container">Chart will load here</div> <script type="text/javascript"> <!-- var myChart1 = new FusionCharts( "MSColumn2D", "myChart1Id", "100%", "100%", "0", "1" ); myChart1.setXMLData("<chart showValues='0' showFCMenuItem='0' decimals='0' formatNumberScale='0' caption='CD After-Tax Accumulated Interest' xAxisName='Year' numberPrefix='$' bgColor='FFFFFF' showBorder='0' canvasBgColor='ffffff' showAlternateHGridColor='0' plotGradientColor='' numberSuffix='' thousandSeparator=',' decimalSeparator='.'><categories><category label='1' /><category label='2' /><category label='3' /><category label='4' /></categories><dataset seriesName='Single Year CD' color='0B9191'><set value='2917.305600000007' /><set value='5932.165899264015' /><set value='9047.843126935404' /><set value='12267.708601100123' /></dataset><dataset seriesName='CD Laddering' color='F58127'><set value='729.3264000000054' /><set value='729.3264000000054' /><set value='729.3264000000054' /><set value='729.3264000000054' /></dataset></chart>"); // --> </script> <ul><li><a href="inv01">How should I allocate my assets?</a></li><li><a href="inv02">Compare taxable vs. tax-free investment return</a></li><li><a href="inv03">What is the value of a bond?</a></li><li><a href="inv04">What is the return on my real estate investment?</a></li><li><a href="interest-calculator">What is the value of compound interest?</a></li><li><a href="inv06">What is the value of a call or put option?</a></li><li><a href="inv07">Taxable vs. tax-advantaged savings?</a></li><li><a href="inv08">What is my risk tolerance?</a></li><li><a href="inv09">What is the long-term impact of increased investment return?</a></li><li><a href="inv10">Certificate of deposit (CD) analyzer</a></li><li><a href="what-is-the-dividend-yield-on-a-stock">What is the dividend yield on a stock?</a></li><li><a href="inv12">How do expenses impact mutual fund returns?</a></li><li><a href="certificate-of-deposit-cd-laddering-strategy">Certificate of deposit (CD) laddering strategy</a></li><li><a href="share-certificate-analyzer">Share Certificate analyzer</a></li><li><a href="share-certificate-laddering">Share Certificate laddering strategy</a></li></ul><table class='pure-table pure-table-bordered' role='grid'><tr><th colspan='5'>Single CD</th><th scope="col">CD Laddering</th></tr><tr><th scope="col">Year</th><th scope="col">Beginning Balance</th><th scope="col">Interest</th><th scope="col">Taxes</th><th scope="col">Ending Balance</th><th scope="col">Ending Balance</th></tr><tr><td role="rowheader" scope="row">1</td><td>$87,240</td><td>$3,315</td><td>$398</td><td>$90,157</td><td>$87,969</td></tr><tr><td role="rowheader" scope="row">2</td><td>$90,157</td><td>$3,426</td><td>$411</td><td>$93,172</td><td>$87,969</td></tr><tr><td role="rowheader" scope="row">3</td><td>$93,172</td><td>$3,541</td><td>$425</td><td>$96,288</td><td>$87,969</td></tr><tr><td role="rowheader" scope="row">4</td><td>$96,288</td><td>$3,659</td><td>$439</td><td>$99,508</td><td>$87,969</td></tr></table><span style="padding-bottom:2px;background-color:#eee;line-height:1.45em;border-bottom:1px dotted;border-top:1px dotted;"><span style="color:#81A41E;font-size:100%;font-weight:700;">&nbsp;FINANCIAL PLANNERS</span> <span style="color:#000;font-size:100%;font-weight:normal;">&ndash; <a href="http://www.plannerportal.com" target="_PP_WINDOW">Affordable Financial Planning Software</a> &ndash; <a href="http://www.plannerportal.com" target="_PP_WINDOW">www.PlannerPortal.com</a></span>&nbsp;&nbsp;</span>