In a personal finance plan, certificates of deposit (CDs) can provide a stable, predictable place to keep some of your money, according to Carl Friedrich, managing principal of Friedrich Wealth Management in Syosset, New York, who spoke with Ally Bank.
People often use CDs as a way to put aside money for a house, a car, an emergency or a safety fund, should they lose a job or suffer another setback.
To determine how CDs can work for an individual, "The question we always start with is, when do you need the money?" Friedrich said.
That's important, because you don't want to find yourself withdrawing money before the CD matures, he explained. Doing so will usually incur an early withdrawal penalty, but not always - as in the case of the Ally Bank No Penalty CD, which gives you a highly competitive rate on an 11-month CD which you can withdraw - including earned interest - without a penalty anytime after the first 6 days following the date you fund your CD. Once you know the time frame that works for you, decide on a CD that works for your financial plan.
CDs fit particularly well with an overall personal finance plan, because "you know exactly what you're getting. The maturity is [fully disclosed]," said Friedrich.
Get the scoop on the Ally Bank line of CD products - with some of the most competitive rates available anywhere, based on rates published by Bankrate.com - at Allybank.com or call live, 24/7 customer service at 877-247-ALLY (2559) today.