Many people find CDs to be both the safest and most profitable way to save money. Comparing CDs to municipal bonds and jumbo CDs (those valued over $100,000) can help you choose the right way to save for your financial situation.
To get a real-life example, Ally talked to Carl Friedrich, managing principal with Friedrich Wealth Management in Syosset, New York. He told us about a recent client who had just sold his house in Manhattan and wanted to wait a couple of years before using the proceeds to buy another house. "They just wanted to park it and try to stay ahead of inflation," says Friedrich.
After looking into top-rated non-New York bonds, New York municipal bonds, and two-year Jumbo CDs, he found the CDs offered him the most attractive combination of profit and peace of mind.
This analysis, done in August 2010, showed that "in the current environment, those alternatives just don't stack up to the CDs that are currently available," says Friedrich. "The CDs are coming out ahead of the pack on an after-tax basis."
What's more, he reached this conclusion by including step-up products like Ally's Raise Your Rate CD.
Take a look at Ally's CD options to see which one stacks up in your favor.