Many people look at 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 get your principal back with interest earned. CDs have built-in discipline to help you stick to your savings plan. If you withdraw your funds early, you may face an early withdrawal penalty.
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 normally will offer a higher rate than a 6-month CD at the same institution. Before opening a longer term CD, however, be sure to consider your cash flow needs for the near future.
Ally Bank currently offers High Yield Certificates of Deposit with competitive annual percentage yields (APY) that are among the most competitive available in the country according to Bankrate.com. And our great rates are available to anyone, not just those with a large opening deposit.
Where to compare
In addition to checking with financial institutions directly to find CD rates, Bankrate.com is a helpful resource for comparing various rates from different banks. 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. 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 insured by the Federal Deposit Insurance Corporation (FDIC) up 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.
Learn more at AllyBank.com today or call live, 24/7 customer care at 877-247-ALLY (2559).
Ally Bank, Member FDIC