Credit Union Certificate Ladder Calculator
Use this calculator to examine the benefits of investing in a series of Certificates with different maturities, also called a 'Certificate Ladder'. With a Certificate Ladder, you can benefit from higher interest rates for longer maturities, while achieving better liquidity, rather than investing in a single long-term certificate.
Credit Union Certificate Ladder Calculator Definitions
- Total to invest
- This is the total amount to invest in your Certificate Ladder.
- Frequency of Maturing certificates
- How often you would like to have a certificate maturing. For example, if you choose six months, one of your certificates in your Certificate Ladder will mature every six months.
- Amount in each certificate
- How much you wish to invest in each certificate in your ladder. We use this amount to calculate the number of certificates in the ladder. If the amount that you enter isn't evenly divisible by the total you wish to put into your Certificate Ladder, we will automatically adjust it up to an evenly divisible amount.
- Certificates in your Ladder
- The number of certificates that will be in your Certificate Ladder. Each certificate will have a different maturity, so that one of your certificates will mature at the frequency you specify. This calculator assumes that you redeposit all matured certificates into new certificates that have a term of the longest maturity in your original Certificate Ladder.
- Interest is compounded
- Interest earned on your certificates accumulated interest. This calculator allows you to choose the frequency that your certificates interest income is added to your account. The more frequently this occurs, the sooner your accumulated interest income will generate additional interest. You may wish to check with your local office to find out how often interest is being compounded on your particular certificate.