If you’ve been shopping around for CD rates, chances are you’ve already heard of a CD ladder. Laddering can sound complicated, but I’m here to tell you it’s an easy strategy that will help accelerate your CD savings. Essentially, building a ladder diversifies your maturities. Rather than throwing a whole heap of money into one CD, laddering allows you to divide your money across different CDs to take advantage of different interest rates.

In addition to increasing your earning potential, a ladder also increases your liquidity. You’ll always have a chunk of cash that stands relatively close to maturity.

Caution: don’t climb too high in today’s market

Contrary to popular belief, there’s no rule that a ladder must extend into 5-year CDs. With today’s rates, locking your money away with a bottom-of-the-barrel interest rate for five years isn’t the best strategy. Instead, you may want to consider a stepladder approach, which focuses on shorter maturities and allows you to extend your ladder into longer terms when interest rates rise.

For example, if you’re looking to invest $40,000 in CDs, here’s one way you could initially spread out your investments: $10,000 in a 6-month CD, $10,000 in a 9-month CD, $10,000 in a 1-year CD and $10,000 in a 2-year CD. If interest rates have risen within the next year, you can opt to reinvest some of that maturing money into a 3-year CD rather than stick with the 6-month or 9-month CDs.

I definitely would not extend your ladder into 5-year CDs today. With such sluggish interest rates, you’ll just frustrate yourself as you watch your money earn at a snail’s pace.

Where should the ladder lean?

Well, right now, some of the best CD rates are at online banks such as Ally, Discover and American Express. If you’re looking to set your ladder up today, I recommend starting your search where you are right now: the Internet.

While American Express earns finance charges from the millions of credit cards it issues, the bank can also help you earn some money. The institution’s online savings account offers some of today’s most competitive interest rates, and interest is compounded daily for higher earnings potential. Currently, the savings account earns a 1% APY.

No minimums

While many online savings and money market accounts require an opening balance of anywhere between $500 and $2,500, you can open and American Express high-yield savings account with any amount. You won’t have to satisfy any type of monthly balance to avoid fees, either, which is reassuring.

Deposits and withdrawals

From electronic transfers to phone to mailing paper checks, you can transfer funds from your outside checking accounts to earn the above-average interest at American Express. You can also arrange recurring monthly transfers from up to three accounts.

Before you apply to open an online account, be sure to ask a customer service representative about transfer fees. The bank’s website does not mention any associated fees, but transferring funds from outside institutions can be costly. Some banks charge as much as $15 for a wire transfer fee. Even if American Express Bank does not charge for incoming funds, your other institution may take a slice of your money.

Customer service

While you won’t be able to go visit a teller, the bank’s customer service department is always a phone call away.With a 24/7 hotline, you’ll find answers and assistance whenever you need to talk to someone.

Other options at American Express

If you’re not afraid of commitment, the bank also offers competitive CD rates. A 2-year CD currently earns 1.3% APY. Similar to its savings account, there is no minimum to invest in a CD.

Learn more about interest rates, deposits and withdrawals in the personal savings section of the bank’s official website.

Hey, guys! Looking for a savings account that is flexible, only requires a single dollar to open, and offers a reasonable return? One of the most trusted names around — American Express — is doing just that with a competitive 1 percent APY rate on a high-yield personal savings account that gives you easy access to your money any time you need it.

Here are the advantages of this banking offer:

• Start your account with as little as a buck. Most institutions offering a 1 percent interest rate require much higher initial deposits.
• No minimum balance. Again, most banks that pay a 1 percent interest rate require a higher balance — $10,000 isn’t unusual.
• Transfer funds or check your balance 24/7 online or by phone.
• No monthly fees.
• Deposits insured by the FDIC.
• No need to switch banks. You can make deposits and withdrawals to your savings account by linking it to an existing account at another bank.
• If you already hold an American Express credit card, opening an account may be expedited. (Bet you have one!)
• Automatic transfers from a linked external account.

Drawbacks (here we go…):

• No checkbooks for customers to write checks directly from their savings accounts, but call American Express and they will mail a check that is payable to you.
• Personal savings accounts don’t offer trust accounts.
• Deposits and withdrawals are limited to six during a calendar month or monthly statement cycle.
• And a biggie: Interest is compounded annually, not daily or monthly.

The company best-known for its “gold” credit cards was founded in 1850 as an express mail business and launched a money order business in 1882. It introduced the American Express Travelers Cheque in 1891 and the first American Express credit card in 1958. It is one of the 30 stocks that comprise the Dow Jones Industrial Average.

For more information, visit American Express online.