How do I choose the right Market Savings term? What’s a laddering strategy?

Modified on Tue, 11 Jun 2024 at 10:54 AM

Save allows you to allocate your deposits to your desired term length. Save’s term length is 1 year. First, customers must balance their liquidity needs vs. the potential APY* for their desired term. 

 

As an example, if you predict you'll need your deposit in a year to buy a new house or pay for college, we advise you to allocate your deposit to a 1-year term.


Most customers have mixed liquidity needs or unknown needs. In these cases, a laddering strategy may be more appropriate. Laddering is a savings strategy to spread a lump sum of cash across multiple terms to take advantage of higher rates while freeing up portions of that money at short-term intervals. 

 

A simple approach would be to split a deposit in a few 1-year terms depending on the rates offered.

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