Buying a high interest rate CD is a rather straightforward process, whether you deposit your funds with a traditional, brick-and-mortar financial institution or with an online bank like Ally Bank. But because "high interest rate" is a relative term, rates vary from bank to bank, and your first step should be to think about your financial goals.
High Interest Rate CDs and Your Financial Goals: Be Specific
The need to be specific about your goals cannot be overstated. You should know not only how much you want to save, but also how much time you have. High interest rate CDs — at least the highest among them - typically require a longer deposit term.
Spending the necessary time to create well-defined goals saves you from underestimating your needs in light of your overall budget. More importantly, it could also save you from having to pay early withdrawal penalties.
Do Some Comparison Shopping with the High Interest Rate CDs You Find.
With your well-defined goals in mind, it's time to do some rate comparison-shopping. Most financial institutions publish their current CD rates online, but while rate shopping is a good place to start, it's not the place to stop.
You need to know what you're getting, so make sure you understand the terms of the CD. Sometimes the rate you see is only available in a certain state, with a high minimum deposit and/or for a longer term than your goals call for.
Research the early withdrawal penalties as well because you don't want to be surprised in the event that you can't wait until the CD matures before you access the funds.
Finally, and perhaps most importantly, take time to get to know the bank. Do they seem customer-friendly, or do they put barriers and unreasonable policies between you and your money?
Ally Bank has a wide range of CD products for many different needs at rates that are consistently among the most competitive in the country according to MyBankTracker. For example, the Ally Bank High Yield CD helps you maximize your earnings with daily interest compounding and automatic renewal at maturity — all backed by our Ten Day Best Rate Guarantee and the maximum amount of FDIC insurance the law allows.
Take a moment to learn more about the Ally Bank High Yield CD and our other CD products. Visit AllyBank.com or call customer care at 888-247-ALLY (2559), where live help is always available.