Ladder Your Certificates To Increase Your Return
You can increase your overall certificate investment return and retain liquidity with a technique called laddering. Instead of investing $5,000 in one certificate, invest in 5 separate credit union certificates.
For example, purchase a 1-year, 2-year, 3-year, 4-year, and 5-year certificate. Each year simply roll the certificate that comes due into a new higher yield 5-year certificate. This way, you will have 20% of your funds coming due each year. By the fifth year, all of your certificates will be receiving the highest interest rate.