How to build a CD/Treasury ladder (and why)

A ladder is the simplest way to get most of the yield of a long-term lockup while keeping cash coming free on a regular schedule. You split your money into equal 'rungs,' each maturing at a different date.

How it works

• Decide your total amount and how far out you're willing to go (the horizon).
• Pick a number of rungs — say four rungs over two years means maturities at 6, 12, 18, and 24 months.
• As each rung matures, you either spend it or roll it into a new long rung at the far end, keeping the ladder going.

Why bother instead of one big CD?

Two reasons. First, liquidity: something matures regularly, so you're never fully locked up. Second, rate risk: if rates rise, you reinvest maturing rungs at the higher rate; if they fall, you've already locked in some longer rungs at the old, higher rate. A ladder hedges both directions.

The Tbillery ladder builder turns this into one screen: enter an amount, set a horizon and rung count, and it assigns each rung the best safe yield available at that term and shows the maturity timeline. Export it to CSV or print it for your records.

Build a CD/Treasury ladder around current rates.

Updated July 2026