2026 Step Deposit Method Income Planner
Principle analysis of tiered deposit method
The tiered deposit method aims to resolve the contradiction between “long-term high interest rates” and “temporary use of money”:
Strategy Plan
Allocation strategy: The 100,000 principal is divided into 5 parts and deposited into 1-year, 2-year, 3-year, 4-year, and 5-year time deposits, respectively. After one year, the expiring 1-year time deposit will survive for a new 5-year period; every year thereafter and so on.
Actual Results
Final status: After 5 years, you will have 5 high-interest certificates of deposit, each with a maturity of one each year, balancing top-tier earnings with annual liquidity.
The ladder method can significantly improve the long-term average annualized rate of return compared to the direct full deposit of 1 year; compared to the full deposit of 5 years, it effectively reduces the risk of all interest losses due to the urgent need for money in the middle.
Set Your Million-Dollar Savings Goal
Want to save up 1 million? Use our goal planner to calculate how much you need to save monthly.
12-Month Rolling Deposit
A rolling savings strategy for salaried workers, giving you extra income every month.
Further Reading
12-Month Rolling vs Staircase Deposit
If you're choosing between monthly rolling deposits and staggered annual maturities, this page shows the differences.
Compare Strategies>Staircase Deposit Practical Guide
Beyond the calculations—see how to align the staircase structure with your family's spending plan.
View Practical Guide>Latest Bank Deposit Rates
Whether the staircase method is worthwhile largely depends on the current rate spread between 1-year, 3-year, and 5-year terms.
View Latest Rates>