CDs are a great way to save. When you get a CD, you sign up to put your money in an account that you agree not to access until the maturity date. If you withdraw the funds before maturity, there is usually an early withdrawal penalty. Read all the disclosures before you get a CD to find out what the penalty is because some banks charge more than others.
One notable exception to paying an early withdrawal penalty is the Ally Bank No Penalty CD, which pays a competitive rate, and you can withdraw the funds plus interest earned, without paying a penalty, any time after the first 6 days following funding your account.
With other CDs that do include an early withdrawal penalty, you'll typically find a better annual percentage yield (APY) than what is available on standard savings accounts in exchange for not accessing the funds in your account until maturity. Before you get a CD at a traditional, brick-and-mortar bank, you may want to check into an online bank like Ally Bank.
CDs from online banks typically carry competitive rates because online banks generally have lower overhead costs than traditional banks and can pass the savings onto you in the form of more interest. In fact, Ally Bank publishes our CD APYs along with those of some of our competitors to help you compare and see the difference before you get a CD.
As for safety, all Ally Bank deposits are FDIC-insured up to the maximum allowed by the law, just like any FDIC-member bank. It's easy as well — you can get a CD with us in just a few easy steps online. Discover a safe way to save and earn rates that are among the most competitive in the country with an Ally Bank CD today.