Look into this: 12 12 month CDs each maturing 1 month after the next.
Another example of CD laddering: 
CD   Amount   Term   Rate   APY   Maturity
1  $10,000  6.0 mo.  2.71%  2.74%  May 17, 07
2  $10,000  12.0 mo.  3.63%  3.69%  Nov 17, 07
3  $10,000  18.0 mo.  3.63%  3.69%  May 17, 08
4  $10,000  24.0 mo.  3.83%  3.90%  Nov 17, 08