CD Investing: Hit Your Savings Target with the CD Target Strategy

This is the fourth and final part of a series on strategies for saving with CDs. 

Catch up on the rest of the series: 

Part 1: CD Strategy Overview Part 2: CD Ladder Part 3: CD Barbell

If you’re exploring different investing or savings strategies, CD investing can be one of the simplest ways to grow your money safely while keeping your goals in sight. Certificates of Deposit (CDs) provide guaranteed returns with fixed terms and a steady APY^*, making them a reliable tool for short- and medium-term savings.

One of the easiest strategies for CD investing is called the CD target strategy. 

We’ll explain the CD target below but, for starters, think of it like aiming for a basketball hoop. Different shots have different values, but they all help build towards your final score – or your savings goal. 

What is the CD Target Strategy?

The CD target strategy is about timing. Instead of opening one CD and hoping it matches up with your savings needs, you open multiple CDs at different times so that they all mature on the same target date.

This approach makes it easy to plan for specific goals – whether it’s a dream vacation, a down payment on a house, a wedding, college tuition, or building your emergency savings.

How the CD Target Works

Here’s an example of how a CD target can work for you:

• You want to take a family vacation in 18 months and budget $10,000.
• You open an 18-month CD today with $5,000.
• Six months later, you save $3,000 and place it into a 12-month CD.

Six months after that, you add another $2,000 into a 6-month CD.

When the vacation date arrives, all three CDs mature at the same time. You now have your $10,000 saved – plus the interest earned along the way.

It’s like taking different basketball shots – a layup, a mid-range jumper, and a 3-pointer – but all aiming at the same hoop. Your CDs might have different terms, but they all hit the same savings goal.

Why the CD Target is a Smart Investing Strategy

Compared with other investing strategies, the CD target is simple and low risk:

• Clear timeline – Your CDs mature right when you need the money.
• Guaranteed growth – Your interest rate is locked in, so you know what you’ll earn.
• No guesswork – Unlike a CD ladder, you don’t need to reinvest or manage multiple maturity dates.
• Flexibility after maturity – Once your CDs mature, you can use the funds for your goal – or reinvest them into longer-term CDs for continued growth.

This makes CD investing a practical choice for anyone who wants security, predictability, and a straightforward way to reach financial milestones.

Building Your Own CD Target

Creating a CD target requires a little planning. Start by asking:

1. What is my savings goal? (Vacation, car, down payment, etc.)
2. When will I need the money? (That’s your target date.)
3. How much can I save along the way? (Set up your CDs to match your savings progress.)

Once you know your timeline, you can match your CD terms – 6 months, 12 months, 18 months, and so on – so they all align with your target date.

Final Thoughts on CD Investing

When it comes to investing strategies, not every option needs to be complex. The CD target is a simple, goal-focused approach that combines guaranteed returns with a clear savings path. 

Whether you’re saving for something fun or something essential, CD investing with a target strategy can help you hit your financial goals with confidence.

See CD Specials Open a CD

Catch up on the rest of the series: 

Part 1: CD Strategy Overview Part 2: CD Ladder Part 3: CD Barbell