It's important to note that some long-term high-yield certificates of deposit (CDs) are "callable." That means that the bank can terminate the CD after a certain period of time, taking away your opportunity to earn all the interest you initially planned to earn. Not all banks have callable CDs, and in fact none of Ally's CD offerings are callable.
For banks that do offer them, they'll typically call a high-yield CD when interest rates drop, allowing it to adjust to the change. The call feature of a callable CD gives the bank the right to terminate the CD. When a callable CD is called, you receive the principal and any accrued interest up to that point. You are then free to use the funds however you wish.
Be sure you are clear on what kind of CD you are purchasing. For instance, a "federally insured one-year non-callable" CD might sound like it matures in one year, but that phrase just means that the bank cannot call the CD during the first year. You'll still need to check the actual maturity date, which may extend beyond the non-callable period.
We do not offer callable CDs at Ally, but we do have several CDs for you to choose from, all of which offer some of the most competitive rates in the country. Our customer service representatives are also available 24/7 to help you learn how your CD works.