Keep Your Mind, Body and Retirement Account In Shape

40 and Financially Fit: How Bank CDs Can Help

September 2012

Being financially fit can mean different things to different people, especially when you consider age. In your 40s, for example, you begin to face some important questions. Do you want to start saving for retirement? Or maybe for a second home or your child's college education? These may all be good reasons to start saving money in your 40's, but do you know what to do with the money you save?

One additional challenge is that it's not always easy to make time for saving when kids, career and other priorities take center stage. Using a certificate of deposit (CD) to grow your savings can be a smart way to become more financially fit at this stage in your life. Certificates of deposit generally offer a secure, predictable annual percentage yield (APY) to help you manage the cash part of your overall portfolio.

Here's a quick look at how a certificate of deposit works:

A certificate of deposit allows you to save money at a generally higher interest rate than other saving products. CDs usually have fixed terms, or time periods, which tend to range anywhere from a few months to a number of years. During the term, your balance accrues interest. So, while you're working to stay healthy and physically fit, your money is working hard to keep you financially fit.

Once the term of your bank CD ends, you can either withdraw the money or roll it over into another CD. If you won't need the money until sometime in the future, renewing your CD may be a sensible option. That way, the interest will continue to accrue until you need it.

To make the most of your savings in your 40's, consider opening a certificate of deposit at an online bank like Ally Bank. Online banks generally offer higher interest rates according to and make it easy to manage your savings - so that you can feel free to get on with your life.

Ally Bank can help you find a bank CD to help you save for a bright financial future. Get the scoop at or call live, 24/7 support at 877-247-ALLY (2559) today.

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