Maintain Cash Flow with Certificate Laddering

  • May 17, 2024
  • Financial Partners Credit Union

Maintain Cash Flow with Certificate Laddering

With certificate rates higher than they’ve been for years, savvy investors are using an approach known as Certificate Laddering to potentially maximize their returns. And there's no better time to explore this wealth-building strategy than now, with Financial Partners Credit Union offering high-rate certificates for both new and used members who bring new money to the Credit Union.

What is Certificate Laddering?

Certificate Laddering is a savings strategy where you invest in multiple certificates with both long and short maturity dates, so you can take advantage of higher rates on longer-term certificates, but still have steady access to funds should you need them. For instance, instead of investing in a single $100,000 certificate for a certain term, you might invest instead in several smaller certificates with varying maturity dates.

Three Reasons to Embrace Certificate Laddering

  1. Maintain Liquidity: With Certificate Laddering, certificates mature on a regular basis, allowing you to keep a source of liquid funds. Opt for a mix of shorter-term (3 to 12 months) and longer-term (12-24 months) certificates, ensuring that your money isn't tied up in lengthy commitments.
  2. Minimize Risk: Diversification is key to managing risk, and Certificate Laddering excels in this aspect. By staggering Certificates with different maturity dates, you mitigate the impact of sudden rate changes. This strategic approach ensures that not all your Certificates mature simultaneously, shielding your portfolio from potential rate decreases. Plus, if rates go up, you’ll be able to take advantage of them more quickly.
  3. Improve Cash Flow: Rather than tying your money up for the long term, you can invest the same amount but have the investments mature at various intervals over the years. This intelligent investment tactic provides a steady cash flow and maximum flexibility.

Get Great Rates with Financial Partners Credit Union

As you embark on your investment journey, you can trust Financial Partners to provide you with great options and excellent rates. Our Certificates rate has been recognized not only by Forbes, CBS, and CNBC - but by thousands of Members on their own unique financial journey.


APY = Annual Percentage Yield

Name Your Term Certificate: Minimum deposit is $1,000. New money required, source of funds deposited into certificate may not be from an existing Financial Partners Credit Union account. Penalty for early withdrawal/early closure.Feed could reduce earnings on the account. Rate quoted as of June 15, 2024 and subject to change, be revoked, or end at any time.

8-Month Certificate: Minimum deposit is $1,000. Maximum deposit is $5,000. Penalty for early withdrawal/early closure. Offer is available to new members only in Los Angeles, Orange, Riverside, or San Diego County; the city of South San Francisco; and the city of Alameda, California. Limit one per new member. Fees could reduce earnings on the account. Rate quoted as of April 8, 2024 and subject to change at any time. Offer is subject to change, be revoked, or end at any time. A new Financial Partners Credit Union membership required.