CD & TREASURY LADDER PLANNER · RUNS IN YOUR BROWSER · NOTHING UPLOADED

Is a CD or Treasury ladder worth it after tax?

Type the CD and Treasury rates you can get today. See an equally spaced ladder with its after-tax yield per rung (Treasuries skip state tax), when cash comes due, and how the ladder compares with one long CD or rolling short-term terms if rates rise or fall by up to two points.

Arithmetic on numbers you type in. Not tax, legal or financial advice. The example rates are placeholders, not current quotes.

1. The ladder

2. The rates you can get

One line per quote: months, APY in percent, and cd or treasury. The tool interpolates between terms you list.

Questions people ask

What is a CD ladder?

You split your money into equal parts and buy CDs or Treasuries with different maturities, for example 1, 2, 3, 4 and 5 years. Each year one rung matures, giving you cash access, and you can reinvest it at the longest term. You earn closer to long-term rates while some money always comes due soon.

Is a Treasury ladder better than a CD ladder?

Treasury interest is exempt from state and local income tax, CD interest is not, so in a state with income tax a Treasury can win after tax even at a slightly lower rate. Where there is no state income tax the higher headline rate usually wins. The tool compares both after tax at the rates you type.

Is a ladder better than putting everything in the longest CD?

Only when rates rise. If rates fall after you buy, the single longest CD wins because you locked the high rate. If rates rise, rolling short or a ladder reinvests at the better rates. The scenario table shows the result for rate moves of minus 2 to plus 2 points.

How many rungs and how long should each be?

More rungs mean smaller chunks come due more often, which helps liquidity, at the cost of managing more positions. Common ladders use 4 to 5 rungs of 12 months, or 12 monthly or quarterly rungs of short T-bills. Match the spacing to when you may need the cash.

Are the rates in the example real?

No. They are placeholders, not current quotes. Type in the rates you can actually get from your bank, brokerage or TreasuryDirect, and update them when they change.

Is this financial or tax advice?

No. It is arithmetic on the figures you type. It does not know your tax situation, FDIC or SIPC coverage limits, early-withdrawal penalties or whether a CD is callable, and it does not recommend any bank or security. Talk to a qualified adviser.

Not decided

Whether to hold these instruments at all. The model ignores early-withdrawal penalties, callable CDs, FDIC and SIPC limits, brokered-CD fees, Treasury auction mechanics and purchase limits, inflation, and the tax treatment of discount on bills. It treats a rate move as a single parallel shift right after you buy and values accrued interest at the end of the ladder.

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