Planning to Save

When is a Good Time to Get a CD?

September 2012

If you want to get a CD to build your savings, you may be wondering when and how you should open an account. A CD account can be a great alternative to a regular savings account for those looking to earn interest at a higher rate. To get a CD, all you need to do is open a CD with a bank, and - depending on the bank - this can be done entirely online.

A CD is very similar to a savings account in terms of purpose and function. The biggest difference is with a CD, you agree to deposit your money for a fixed amount of time. The time frame can range from a few months to several years, and if you decide to withdraw the money before the time is up (called maturity), you may have to pay an early withdrawal penalty. Generally, the longer you keep your money in a CD the better the earning potential.

CD Accounts with Online Banks

To get a CD with an online bank, start by choosing the bank itself. As published by, online banks generally offer you higher interest rates than a traditional brick-and-mortar bank, but interest rates are only one place to begin when comparing. You should also look into the bank itself. After all, it's your money.

With Ally Bank, for example, you can open and fund your CD with any amount and get the same great rate no matter how much you deposit. Plus, Ally Bank compounds your interest daily so your money grows faster.

When to Open a CD

The best time to get a CD depends on your financial goals. Because most CDs have an early withdrawal penalty, you'll want to make sure that you can afford to be without access to your cash until the CD matures. If you're unsure, however, you still have options.

With the Ally Bank No Penalty CD, you'll still earn a great interest rate, and you can withdraw your balance - including any interest earned - without paying a penalty any time after the first 6 days of funding your CD.

Is now the right time for you to get a CD? Explore the Ally Bank line of CDs and get started in six easy steps. Learn more at or call live, 24/7 customer service at 877-247-ALLY (2559) today.

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