Opening a Certificate of Deposit Account 101

Certificate of Deposit 101

September 2012

A certificate of deposit, commonly referred to as a CD, is an interest-bearing deposit account offered by banks and credit unions. Ally Bank offers three kinds of CDs: our High Yield CD, No Penalty CD, and our Raise Your Rate CD.

Unlike a savings account where the interest rate may fluctuate, most CDs offer a fixed annual percentage yield (APY). The APY on a certificate of deposit is usually higher than a savings account because you agree to deposit a sum for a specified period of time during which the funds cannot be withdrawn unless you pay an early withdrawal penalty.

Common CD terms range from a few days or months to a few years. Generally speaking, the longer you're willing to commit to a CD, the better rate you'll get. If you're not willing to commit to a CD that requires a lengthier time period to mature, you have the option of choosing one that requires less of a time commitment and has a slightly lower interest rate. You can also choose our No Penalty CD, which allows you to withdraw all your money, including interest earned, without any penalties, anytime after the first six days following the date you fund your account.

Some banks require a minimum deposit to open a CD, but at Ally Bank, you can open and fund any of our certificate of deposit accounts with any amount. Simply make your deposit within 10 days of opening your CD and take advantage of our Ally Ten Day Best Rate Guarantee.

Different banks have different requirements when opening a certificate of deposit account. At Ally Bank you can open a CD in a few easy steps, right from your own computer or over the phone — anytime, 24/7 at 877-247-ALLY (2559) or by visiting us at Allybank.com.

Ally Bank CDs give you daily compounding interest for maximum earnings. They can also be laddered over time, giving you even more financial benefits. Take a look at what we have to offer and start making interest off your money today.

High Yield CD

No Penalty CD

Raise Your Rate CD

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