. CD laddering is when you divide your deposits into multiple CDs with different rates and maturity dates. For example, your ladder might look like this:\r $1,000 in a 1-year CD at 2.30% $1,000 in a 3-year CD at 2.70% $1,000 in a 5-year CD at 2.90% \r As each CD matures, you can withdraw the funds (plus interest) and re-invest them in a 5-year CD. This is a very smart strategy. This way, every year, you can withdraw money if you need it. And you can always get the best current interest rate.