CD Laddering Could be a Strategy for You

Start Saving for Your 60's with an Ally Bank CD

September 2012

When you think about your future - for example, what life in your 60s will be like - it's natural to feel the urgency to start saving toward your goals. And while wondering whether you'll have enough money saved to enjoy your golden years is a legitimate concern, if you've ever thought that certificates of deposit (CDs) or a CD laddering strategy are only for people who already have a lot of money - or that now's not a good time to start saving (because it's too late or too early) - Ally Bank has good news.

"Right Now" is Almost Always a Good Time to Start Saving with Ally Bank CDs.
One of the main points most every financial expert will make is that it's really never too early or too late to put money aside for the future. In fact, you might be happy to know that Ally Bank has a full line of CDs to meet a variety of savings goals - and you can open and fund any Ally Bank CD with any amount.

With that in mind, saving for your 60s and beyond starts with identifying your specific goals and needs and evaluating the different means - CDs, savings accounts, etc. - to get there.

Start with Your Goals
Decide what "life in your 60s" means to you. Do you want to keep working, either full or part-time? Or would you rather spend your time pursuing a hobby, traveling or something else entirely? The point is to think beyond stereotypical images of what those years could be like and focus on your own wants and needs - the more specific the better. After all, it's your future - not that man or woman in the retirement ad - whose future you're planning.

Once you have your goals in order, you can start saving money with a purpose, and an Ally Bank CD can be a way to do just that.

Start Saving with an Ally Bank CD
Only you, perhaps with the help of a financial planning professional, can decide what your goals are and what it will take to get there, but Ally Bank has a number of CD choices that might fit into your plans:

High Yield CDs help you enhance your savings with a competitive rate and daily interest compounding for the term you choose - from a few months to a few years. Like most any other bank CD, these have an early withdrawal penalty if you withdraw your funds before maturity.
Raise Your Rate CDs give you a great rate, daily interest compounding and the option to increase your rate - once with the two-year Raise Your Rate CD and twice with the four-year version - if our rate on these CDs go up during the term of your CD. Again, with rare exceptions, these CDs are similar to most any other bank CD in that you'll pay an early withdrawal penalty for taking our your money before maturity.
The No Penalty CD from Ally Bank is an 11-month CD that also gives you a great rate and daily interest compounding, and if you decide you'd like to withdraw your money before it matures, you can - with no early withdrawal penalty - anytime after the federally regulated waiting period (the first six days after funding your account). Plus, you'll keep all earned interest.

Any Ally Bank CD might be used as part of a CD laddering strategy, depending on your goals. With CD laddering, you might divide your savings into smaller amounts and open CDs that are staggered in maturity. For example, instead of opening one, $1000 five-year CD, you could put $200 into each of five shorter-term CDs (one-year, two-year, three-year and so on). For that matter, you could even make our No Penalty CD the first rung of your CD laddering approach. It's up to you, and you can adjust the approach to your own situation.

You can get your savings plans in place today and build your own CD ladder by visiting AllyBank.com or by calling live, 24/7 support at 877-247-ALLY (2559).

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