The Growing Types of Certificates of Deposit (CDs)

High Yield CDs, No Penalty CDs & Bump Up CDs

September 2014

The traditional certificate of deposit (CD) is a fairly simple financial tool. But, in recent years, banks have begun offering different types of CDs to meet different financial needs. Take a look at just a few of the various types of CDs available.

No-penalty CDs allow you to withdraw your money before the CD's maturity date without incurring a penalty. These products can be useful if you like the option of having your funds available in case of emergency or for any other reason. Ally Bank’s No Penalty CD is a fixed-rate CD that allows you to withdraw all your money without a penalty, any time after the first six days following the date you funded your account. Plus, keep the interest earned.

High yield CDs have fixed rates that usually run higher than those of average CDs. In general, these may require longer investment periods and a larger minimum deposit—but terms vary significantly from bank to bank. With an Ally Bank High Yield CD, you can open and fund with any amount and always get a competitive rate.

"Bump up" CDs give you the option of changing the rate over the term of the CD, allowing you to take advantage of rising rates without having to worry about the potential downward adjustments of a variable rate. Ally Bank offers this type of CD in the form of our Raise Your Rate CDs. With these CDs, you have the option of a one-time rate increase if our Ally Bank 2-Year CD rate goes up; you have the option to increase your rate twice (two times) if our Ally Bank 4-Year CD rate goes up.

It pays to explore your options when shopping for a CD that best fits your needs. Learn more at Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.

Ally Bank, Member FDIC

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