Could CD Laddering Be a Good Strategy for You?

Start Saving for Your 60's With an Ally Bank CD.

November 2014

When you think about your future, perhaps what life in your 60s and beyond will be like, it's natural to feel the urgency to start saving toward your goals. Wondering whether you'll have enough money saved to enjoy your golden years is a legitimate concern, and certificates of deposit (CDs) can help you reach your savings goals.

Right Now Is a Good Time to Start Saving
One thing most financial experts agree on is that it's really never too early or too late to put money aside for the future. With that in mind, saving for your 60s and beyond starts with identifying your specific goals and evaluating the means to get there.

Start With Your Goals
Decide what "life in your 60’s" 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. Once you have your goals outlined, you can start saving money with a purpose, and an Ally Bank CD can help.

Save With Ally Bank CDs
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 can fit into your plans:

  • High Yield CD—A CD with our fixed rate for a fixed term.
  • No Penalty CD—A CD that allows you to withdraw all your money, including interest earned, without any penalty, any time after the first six days following the date you fund your account.
  • Raise Your Rate CDs—With these CDs, you have the option of a one-time rate increase if our 2-Year CD rate goes up; you have the option to increase your rate twice (two times) if our 4-Year CD rate goes up.

Consider CD Laddering
Any Ally Bank CD might be used as part of a CD laddering strategy, depending on your goals. A CD ladder is a system that diversifies your money across CDs with varying maturity dates. For example, you might put 20 percent of your funds in five different CDs, each of which would have a different term length. If you chose CDs with term lengths of 12 months, two years, three years, four years and five years, for example, once the 12-month CD matured, you could then renew it in a new five-year CD. Following this process every year would result in a CD maturing every year, allowing you to take advantage of potentially higher long-term rates.

You can open and fund an Ally Bank CD with any amount, and your deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to the maximum allowed by law.

Explore your savings options; visit Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.

Ally Bank, Member FDIC

Related articles: