Some Tips for Getting the Best Rates for CDs Online

Online Banks Can Be a Trusted Solution.

September 2012

Online banks have greatly expanded the choices available for CDs, and you'll often find the best rates for CDs are from online banks. Because operating costs are lower, online banks can be quite competitive compared to the rates paid by local, traditional banks based on the rates published on Bankrate.

So with all the choices available, where do you start when comparing the best rates for CDs? Three things you'll want to consider are Annual Percentage Yield (APY), minimum opening deposit and Federal Deposit Insurance Corporation (FDIC) insurance.

APY Helps You Compare Apples-to-Apples.
APY is the most accurate way to compare the best rates for CDs, since it takes into account how often interest is compounded. For instance, a CD that compounds interest daily — as it does with our CDs — provides a higher yield than another CD with an identical rate that compounds interest quarterly.

Find a Minimum Deposit that Suits Your Needs.
How much money are you comfortable depositing? Based on the minimums published by Bankrate, some banks require $1000 or more to get the best rates for CDs at the term you're considering. Some banks only pay their best rates for CDs of $100,000 or more — for "Jumbo CD" accounts — and even if a jumbo CD fits into your plans, you may not always get the most competitive APY with one.

At Ally Bank, on the other hand, you can open and fund your CD with any amount. We offer the same great rate to everyone, and our rates are consistently among the most competitive in the country. In the words of one of our satisfied customers, "... I was looking for a place to put my money that would earn the best interest rates available. I found it in Ally [Bank]."

Be Sure Your Account is FDIC-Insured.
Not every company that offers CDs is a bank, so FDIC insurance tells you the financial institution meets the requirements of the FDIC. When seeking the best rates for CDs from banks, make sure your account is with an FDIC-insured bank like Ally Bank, which gives you the peace of mind that comes with knowing your deposits are insured to the maximum amount allowed by law. You can make sure your bank FDIC-insured using Bank Find.

At Ally Bank, all deposits are FDIC-insured up to the maximum allowed by law. Our CD rates are consistently among the most competitive in the country. Visit to learn more. Or speak live with a knowledgeable Ally Bank Customer Care Associate anytime, 24/7 at 877-247-ALLY (2559).

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