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5 Year CD Ladder

What is a CD Ladder?

Certificates of Deposit (CDs) are FDIC insured products with a guaranteed rate of return for a specified period of time. A CD Ladder is a savings strategy which uses a series of CD’s with varying maturities so that you combine the benefits of short-term CD’s and long-term CD’s.

With the Bank of Clovis 5-year CD Ladder, we will help you establish a CD Ladder with a one-time setup. When you open a CD Ladder, you get 5 CD’s with the Bank, with maturities of 1-year, 2-years, 3-years, 4-years, and 5-years. Each of those CD’s will automatically renew as a 5-year CD with an interest rate which is 0.25% above whatever the current Bank of Clovis 5-year CD rate is.

What is my initial interest rate?

The current rate on the 5-year CD Ladder is 1 year for 1.00%, 2 years for 2.00%, 3 years for 3.00%, 4 years for 4.00%, and 5 years for 5.00%. This is a blended first year Annual Percentage Yield (APY) of 3.04%. After the first year, the CD with an initial term of 1-year will be renewed at 0.25% above the 5-year CD rate offered at that time. Your 2-year, 3-year, 4-year, and 5-year CD’s in the Ladder will continue to pay their initial interest rate until their first maturity.

Are there penalties for early withdrawal?

Yes, a 6-month interest penalty on withdrawals before maturity. However, with the Ladder product, you will have a CD maturing each year with a 10-day grace period during which you can make withdrawals with no penalty, or even add more money to your CD.

What is the minimum balance to open a CD Ladder?

The minimum is $25,000. The opening deposit will be evenly distributed between each of the 5 CD’s.


1-Year Ladder

2-Year Ladder

3-Year Ladder

4-year Ladder

5-year Ladder

Minimum to Open & Minimum to Obtain Stated APY






Initial Term

12 months

24 months

36 months

48 months

60 months

Renewal Term

60 months from initial maturity

Initial Rate






Initial APY

1.00% APY

2.01% APY

3.04% APY

4.07% APY

5.11% APY

Renewal Rate

0.25% above regularly offered 60 month rate at maturity

Early Withdrawal Penalty

6 months interest penalty on balance withdrawn. Fees could reduce earnings on account.

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