One of the most effective ways to maximize your investment in CDs/share certificates is called laddering. Laddering is a way to stagger the maturities of your CDs/share certificates. For example, you could buy a one, two and a three-year CD/share certificate. As each matures, you would reinvest, buying longer term certificates, usually five-year CDs/share certificates. This strategy is aimed at having some portion of your certificate portfolio maturing each year. Not only is it great from a liquidity standpoint, there's also interest rate risk benefits. If all of your money is tied to one CD/share certificate and the rates are low when it matures, you'd be faced with renewing it at a low rate. With laddering, you're more likely to avoid investing at the bottom.

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