Savings Center

• Certificates of Deposits (CD’s)
• Laddering your CDs
• Health Savings Accounts
• IRA's and ESA's
• Money Market Accounts
• Regular Savings Accounts
• Trust/FLUTMA Accounts
• Rates
• Savings Bonds
• Signature Guarantee

We’re sure you are as concerned as we are at VyStar about interest rates and what changes might occur over the next few years. We would like to offer to you an idea on how to manage maturing certificate funds to take advantage of an uncertain and ever changing interest rate environment. Certificate Laddering is a good option for a savings portfolio that will deliver both interest income and available cash over a period of time, while adding the flexibility to manage interest rates.

While shorter maturities give you more flexibility and allow you to take advantage of rising rates, certificates with longer maturity periods usually provide a higher return. Some of our members have decided to use a strategy called CD laddering to help take advantage of high interest rates, while spreading maturity dates over a period of time.

An example of laddering – instead of investing all of your money into one certificate, divide it into five separate certificates and purchase a one-year, two-year, three-year, four-year and five-year certificate. Each year, roll the certificate that comes due into a generally higher-yielding five-year certificate. After five years, all your certificates will be earning the higher rate of interest at the time and, even better, you’ll have liquidity. This method helps ensure that you always have access to part of your funds within one year. You could also ladder your maturity dates to match the timing of financial goals such as college tuition, vacation plans, retirement, or anything else you are saving for.