The No Penalty Approach to Bank Rates: CD Planning

Competitive CD Rates. Open and Fund with Any Amount.

September 2012

If you're the kind of person who keeps an eye on bank rates, CD saving and the various benefits attached to it probably aren't new to you. But for some people, CDs are only seen as a long-term saving solution, particularly because most CDs have early withdrawal penalties.

Fact is, when looking at bank rates, CD products with higher interest rates usually have longer terms. So while the relatively lower rates attached to shorter-termed CDs are better than nothing at all, if you're used to a more hands-on approach to saving with CDs, where you frequently look for opportunities to earn a better annual percentage yield (APY), Ally Bank has an alternative to the issue of early withdrawal penalties.

Our No Penalty CD is an 11-month CD that comes with an APY that you might find is competitive with many 12-month CD bank rates — CDs you wished did not have an early withdrawal penalty. But with our No Penalty CD, you can withdraw your entire balance, interest included, without any penalties, anytime after the first six days following the date you fund your account.

So if you're accustomed to chasing the best APY all over the market, not only will you find our rates to be refreshingly competitive, you'll be able to leave your options open if you find, for example, that our Raise Your Rate 2-Year and 4-Year CDs are an even better choice.

With these CDs, you have the option to raise your rate if our rate on those CDs go up. You can choose to raise your rate once with the 2-Year and twice with the 4-Year.

Or you can leave your money in the No Penalty CD, earn its competitive APY, and at the end of that 11-month term have the option of putting your money into a longer-term account that promises a better rate. You can also simply renew it and continue to hold out for a rate on a CD that fits your needs.

It's all about having options that suit your individual saving goals.

Ally Bank also offers a number of High Yield CDs in a variety of terms. And all our CDs can be opened and funded with any amount. Plus, your funds are FDIC-insured to the maximum amount allowed by law. In addition, we offer automatic renewal, making it easy to keep earning interest at the end of your CD's term. Take a look at the benefits of our CDs and start saving today.

Learn more about Ally Bank rates — CDs, savings, checking and even IRAs included — at or call live customer care at 877-247-ALLY (2559), where we can answer your questions anytime, 24/7.

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