If you've saved up a good amount of money but don't have anything specific in mind to buy, CDs might be the perfect place to park this cash until you figure out what to do with it. Sometimes people embark on savings plans with vague intentions in mind. Maybe that money will be spent on a lavish vacation sometime next year — or the year after that. Maybe you've set it aside for a major home renovation that keeps getting pushed back due to a busy schedule. Whatever the financial goal, your extended savings plan could benefit if you decide to buy CDs from Ally Bank.
When you decide to buy CDs, the first thing some experts say you should think about is how long you can go without accessing that money. Keep in mind that with most CDs, withdrawing your money before the CD has matured will result in you paying an early withdrawal penalty. If you already have funds that are in an easily accessible saving account, money market account or short-term CD, you may want to think about setting aside this portion of your savings in a CD that carries a longer term. These longer term CDs often carry higher interest rates, which in turn makes your money work that much harder for you.
Still, sometimes you can take advantage of the rates attached to longer CDs without sacrificing easy access to that money. For example, Ally Bank offers a No Penalty CD that comes with a great rate and lets you withdraw that money at any time — including the interest you've earned — as long as you make your withdrawal after the first six days following the date you've funded your CD.
On the other hand, when you get ready to buy CDs, don't forget about the benefits of short-term CDs. Fact is, earning any interest on your funds is better than earning no interest, and the term you choose for your CD doesn't change the fact that CDs are some of the safest places to put your money. For instance, at Ally Bank, all of your funds in our CDs come insured by the FDIC to the maximum amount allowed by law.
Have money saved but not sure what to do with it? No matter how long you think it will take to make up your mind, Ally Bank has a CD that can work with your financial goal timeline. Why not put that money in a safe place like a CD, where it will collect interest at a competitive rate? Ally Bank offers customers a High Yield CD, Raise Your Rate CD, and No Penalty CD, all of which come FDIC-insured and can be opened with any amount. Visit Allybank.com or give customer care a call at 877-247-ALLY (2559), where live help is available 24/7.