Three Ways Ally Bank Certificates of Deposit Make Sense for “Pretirement”

Check Into the Ally Raise Your Rate CD Today.

February 2015

When it comes to saving for retirement, financial planners generally agree that the final stages of the race—often called "pretirement”—are no time to take undue risks. So as you approach retirement, you might consider putting more of your savings into places that help protect you from exposure to sudden changes in the financial markets. One of those places is a bank certificate of deposit, or CD. Most CDs can contain funds for savings or for traditional or Roth IRAs. Here are three reasons Ally Bank CDs may make sense for you.

Reduced Risk
Bank certificates of deposit (CDs) can be a good choice for this stage of financial planning because they generally provide a fixed rate of return and your funds are insured by the Federal Deposit Insurance Corporation (FDIC) up to the maximum allowed by law.

Ally Bank CD APYs Are Consistently Competitive
When choosing CDs, you'll want to consider both the annual percentage yield (APY) and the term, or the amount of time before the CD matures. At Ally Bank, our CDs consistently offer some of the most competitive rates in the country, based on rates published by Bankrate.com. Plus, there’s no minimum opening deposit and no monthly maintenance fee.

As you consider the terms of different CDs, be sure you understand what early withdrawal penalties you may incur should you withdraw funds before maturity. If you are worried about being able to withdraw your money before the CD matures, consider Ally Bank’s No Penalty CD. This CD 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. (No Penalty CDs cannot be used for IRAs.)

Daily Compounding of Interest With Ally Bank CDs Maximizes Growth
Another important thing to consider is how often your interest compounds. The more frequently interest compounds, the better: with each round, you're earning interest on your initial deposit and the added interest, which is how your money really starts to grow.

At Ally Bank, your CD interest compounds daily. And our rates are backed by our Ally Ten Day Best Rate Guarantee, which gives you the best rate we offer for your CD term during the ten days starting with your CD open date, provided you fund your CD within that time. In addition, Ally Bank offers 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.

Learn more by visiting Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.

Ally Bank, Member FDIC

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