Part 1 of Finding Good CD Rates: Highest Available Rates

Get Good CD Rates Among the Most Competitive Available in the Country - with No Minimum Opening Deposit

September 2012

Many people look toward certificates of deposit (CDs) as a basic component of a solid financial strategy. CDs generally carry very little risk — you agree to keep your money on deposit with a bank for a predetermined amount of time, and in exchange you will get your principal back along with interest earned. CDs have a built-in discipline to help you stick to your savings plan. If you withdraw your funds early, you may face an early withdrawal penalty.

CD rates

Keep this in mind when shopping for good CD rates: the highest rates usually go hand-in-hand with the longest terms. For instance, a 2-year CD will normally offer a higher rate than a 6-month CD at the same institution. However, opting for a longer-term CD with a higher rate means keeping your money on deposit for more time unless you're willing to pay an early withdrawal penalty. Before opening a longer term CD, consider your cash flow needs for the near future.

Ally Bank currently offers a High Yield Certificate of Deposit with a competitive annual percentage yield (APY) that according to rates as published by Bankrate is among the most competitive available in the country.

In fact, MONEY® Magazine named the Ally Bank High Yield CD one of its "100 Best Money Moves" in 2011 (May 2011). Perhaps it's because when it comes to our CD rates, the highest rates at Ally Bank are available to anyone, not just those who start with a large opening deposit.

Where to compare

In addition to checking with financial institutions directly to find CD rates, Bankrate is a helpful resource to compare various rates from different banks. You simply enter your desired term length to see a list of interest rates and other important information. You can also look for minimum deposit requirements, as some banks require a large opening balance to get their best rates. Again, we offer great rates to everyone with no minimum opening deposit requirement.

Also, be sure to find out how frequently each bank compounds interest earnings. While some banks compound weekly, monthly or even annually, we compound interest daily to help your money grow faster. And like most banks, your funds in our CDs are FDIC-insured to the maximum allowed by law.

The bottom line is that when it comes to finding good CD rates, highest doesn't necessarily mean best. Along with rates, you should consider your cash flow needs, minimum deposit requirements and how the bank compounds your interest. Also, look for a bank that offers excellent customer service should you need any assistance with your transactions.

At Ally Bank, you can always reach live, 24/7 customer service at AllyBank.com, or by calling 877-247-ALLY (2559).

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