Your savings ascend with laddersWith interest rates in a constant state of fluctuation, it’s hard to know how best to manage your savings. But you have alternatives to a simple savings account.Savings options aren’t one size fits all and choosing the right one for you involves weighing your goals and needs. If you’re looking for something with the flexibility of a shorter share certificate but with the potential returns of a longer one, a share certificate ladder might be right for you.

Ladders are a low-risk investment option. Simply put, a share certificate ladder is an investment in several linked share certificates with different maturity dates. Your interest rate is locked in for the full period of each certificate, provided you hold the certificate until maturity. (You could incur a penalty if you break the ladder early.) This safety net is particularly appealing for conservative investors who want to grow their savings without exposure to the volatility of the stock market or for those investors wishing to balance out their portfolio with a lower risk investment.

American Airlines Federal Credit Union offers differing lengths of terms designed to fit your needs — certificates with a 30- and 60-month term; a 12-, 24- and 36-month term; and a 12-, 24, 36-, 48- and 60-month term, depending on which one seems right for you.
By strategically laddering your investments, you can balance your need for liquidity with your desire for higher returns.

Bonus: Over time, the ladder smooths out the peaks and valleys of rate fluctuations. This a smart way to protect yourself against changing interest rates while giving you the security of liquidity. You can rest comfortably knowing that you’ll be able to access some of your money within a relatively short time frame while making the most of it while not in use.

— Todd Camp
Federally insured by NCUA