(Left)In this image provided by the Bureau of Engraving and Printing, the front of the new $5 bill is seen. Honest Abe is becoming colourful Abe with splashes of purple and gray. The government unveiled the newly designed bill Thursday.

(Right)The back of the new $5 bill is seen.

When financial institutions are not anticipating a decline in interest rates, it is common for longer-term CDs to carry a higher interest rate than short-term commitments.

advantage of long-term rates

To take advantage of the longer-term rates, an investor can build a 'ladder' of CDs in a way that ties up most of the money at higher, long-term rates, while keeping a portion of it available for re-investment each year.

For example, if you had $25,000 to invest in CDs, you might build a ladder with five rungs, with the rungs representing CDs of different duration.

The top rung is a five-year commitment; the second rung is a four-year commitment, and so on. You fund each with $5,000.

One fifth of your total investment would mature each year, allowing you to reinvest the money at the highest prevailing rate.

This gives you the ability to lock in attractive rates for the long term without running the risk that all of your money would be tied up in the event that interest rates rise.

- LA Times-Washington Post

AP