Strategic CD Investing: Ladder vs. Barbell Approaches for Yield Optimization
Certificates of Deposit remain a cornerstone of low-risk cash management, offering FDIC-insured yields above traditional savings accounts. Their fixed-term structure appeals to investors seeking capital preservation amid market volatility.
Two advanced strategies dominate tactical CD allocation: laddering maturities to balance liquidity and yield, or barbelling short- and long-term instruments to maximize rate capture. The choice hinges on individual cash FLOW needs and interest rate outlooks.