Personal Finance Term
FD Laddering
A strategy of splitting your savings across multiple fixed deposits with different maturity dates, balancing liquidity access with higher interest rates for longer tenures.
Instead of locking all savings in a single 12-month FD, you split into multiple FDs — for example, RM5,000 each at 1, 3, 6, and 12 months. As each matures, you reinvest at the current best rate. This means you always have a portion maturing soon (liquidity) while keeping long-tenure deposits earning higher rates.
FD laddering is especially useful when interest rates are rising — shorter tenures let you capture higher rates as they appear. In a falling rate environment, longer tenures lock in today's higher rates for longer.