That's not how things work. The five year CD is a bet against inflation. The interest is higher since they could lose quite a bit on this, or you could. If interest rates spiked to 20% tomorrow, (not impossible, they were around that in 1980) you're being locked into a 5-year CD would be losing huge money vs. real value, but your 3% mortgage would be a huge bargain.

You can. But the concept of a CD ladder with interest rates as they are today seems like a waste of time. A one year at Ally Bank right now is .99% and a 5 year is 1.6%. That is not enough of a spread for the average investor to worry about.

D0on't see any reason why not. Go to any bank with the best interest rate and split 5 ways if you have to. There is no rule as to how many accounts you can have.

Say bank 1 has a better interest rate for 1, 2, 3, and 4 year CDs.

Bank 2 has a better rate on 5 year CDs.

Would it be possible to mix CDs between banks to maximize my rates? As in, register the first four CDs at bank 1, then the fifth at bank 2 (and eventually moving all into bank 2 once the 'cycle' is complete for maximizing further)?

I guess what I'm asking is, does the bank have to formally set this up with you, or is it managed by you alone, so you can do whatever you want (like the mixing)?

Sorry if I sound naive. I'm new to this! Appreciate your help! :)