Certificate of deposit (CD) laddering strategy

This particular strategy is one where the investor, equally divides the money to be invested into individual amounts of the same proportion, and these amounts become Certificates of Deposit (CDs) which each mature at different rates. What this particular strategy does is reduce the risk that comes along with the investment and also decreases the investment rate on the whole, which would’ve otherwise been higher if the whole investment was done as a single amount. And since the maturity time periods are different, it also helps with receiving a steady inflow of cash, without having to bring a break in the maturity periods.