A Certificate Account is a safe investment to earn a guaranteed return.¹ You can start saving with as little as $500 and select terms from six months to five years. Plus, if you want to maximize the earning potential of certificates while still keeping regular access to some cash, try a popular savings strategy called certificate laddering.

The basics of certificate laddering

A certificate ladder is a way to invest in Certificate Accounts that helps you get better interest rates while keeping some flexibility.

Imagine you have several certificates with different maturity dates, such as one that matures in one year, another in two years, and so on. As each certificate matures, you reinvest it into a new long-term certificate. This way, you’ll have some money becoming available at regular intervals, so you can take advantage of a variety of interest rates without tying up all your cash for a longest term.

How to implement the certificate ladder strategy

Let’s say you have $2,500 to work with, and you’re looking for a safe investment. Here’s an example of how you could create your own certificate ladder with that amount:

• $500 in a 12-month Certificate Account
• $500 in a 24-month Certificate Account
• $500 in a 36-month Certificate Account
• $500 in a 48-month Certificate Account
• $500 in a 60-month Certificate Account

Think of each Certificate Account as a rung on your ladder. The lowest rung, your 12-month Certificate Account, matures the quickest and will free up cash in just a year. When it matures, you can deposit the money (both your original $500 plus the dividend you’ve earned) into a new Certificate Account based on prevailing rates at the time. You’ve just taken the first step up your ladder!

As each Certificate Account matures, you simply repeat the process. Step by step, the money you save and the dividends you earn increase. You’ll keep earning competitive rates while having access to liquidity every year without an early withdrawal fee. This strategy ensures cash is regularly available, while allowing you to lock in rates and earn guaranteed returns.

Ready for a safe investment?

When you’re ready to build your own certificate ladder, talk to us at your nearest Grow Financial store or open your Certificate Accounts quickly in Grow Online or Mobile banking.¹ Happy earning!

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