Yes. A CD ladder involves dividing a sum of money into equal amounts and investing them in CDs with different maturity dates. Maturity dates for CDs are typically set at three months, six months, one year, five years, or longer—especially for IRA CDs. Creating a CD ladder takes advantage of the various interest rates offered for different time periods and keeps you from being locked in with a low interest rate when rates are rising. For example, you could take $20,000 and divide it into four $5,000 CDs, each with a different maturity date—one year, two years, three years, and four years. As each CD matures, you reinvest the money in a new four-year CD. This allows you to leverage the higher interest rates of longer-term CDs, while knowing that you’ll always have a CD reaching maturity within a year.