Saving money is vital to staying afloat in hard times, but it can sometimes be difficult to find the discipline to stash away a portion of your earnings. We live in a society wrought by instant gratification, and meeting long-term savings goals is far from instant. In fact, having an effective savings plan takes time and discipline. Those who need more structure when it comes to saving money long-term might consider opening a certificate of deposit (CD).
Whether you are new to saving or have saved in the past, a certificate of deposit can help you reach your savings goals. Your funds in CDs are secure and insured by the Federal Deposit Insurance Corporation (FDIC) up to the maximum amount allowed by law. They are offered by most banks, including online banks like Ally Bank. In general according to Bankrate.com, online banks typically offer higher CD interest rates compared to traditional, brick-and-mortar banks.
At Ally Bank, for example, you can open and fund your CD account with any amount while earning a great rate of interest. You can transfer funds from an existing account to fund your CD, or you can open an account by mail and include an initial deposit amount via personal check.
We also make it easy to manage your account. You can check its progress at any time. Once your CD reaches maturity, you have the option of renewing the CD, re-depositing the funds in another CD or withdrawing the money.
If your savings goals are to build your funds over time, rolling the funds over to a new CD can offer you the discipline needed to reach your long- term savings goals.
Regardless of your current savings situation, Ally Bank has ways to help you save for what's ahead. Get the scoop at AllyBank.com or call live, 24/7 support at 877-247-ALLY (2559) today.