Part 2 of Finding Good CD Rates: Calculators Can Help

Get Great Rates with No Minimum Opening Deposit at Ally Bank

September 2012

With a certificate of deposit (CD), one solid advantage is that you know your annual percentage yield (APY) before you even open your account. If you know what your savings goal is, you can determine what it will take to reach it. Based on how much you're starting with, a CD rate calculator will show you what term length you need to choose at what interest rate.

Calculating Your APY
You can locate online CD-rate calculators on various websites, including To begin, enter the amount of money you have for an opening deposit. When you choose a CD term length (6-month CD, 12-month CD, etc.), you will be shown the interest rate offered for that term length. Finally, select the number of times you would like to renew your CD.

You can enter various term lengths and renewal options to see which combination allows you to get to your goal fastest and even see the effect of renewing your CD once it matures. Of course, if your CD matures at a time when interest rates are higher, you can then take advantage of a higher rate with a new CD altogether instead of renewing your previous APY.

More resources also features an online CD rate calculator. This one requires you to enter the initial deposit, desired term and interest rate to figure out possible earnings. You can compare different CD rates this way, but bear in mind that you'll want to account for the frequency of compounding interest in order to truly know your yield. For more information and CD options, call 877-247-ALLY (2559) or speak to live, 24/7 customer service at

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