Being financially fit can mean different things to different people, especially at different ages. In your 40s, for example, you begin to face some important questions. Do you want to start saving for retirement? Or maybe for a second home or your child's college education? These may all be good reasons to start saving money in your 40's, but where is the best place to save it?
Certificates of deposit (CDs) can be a smart way to grow your savings and become more financially fit at this stage in your life. CDs generally offer a secure, predictable annual percentage yield (APY) to help you manage the cash part of your overall portfolio.
Here's a quick look at how a certificate of deposit works:
When you open a CD, you agree that you will not withdraw the funds until the maturity date, which varies from a few months to several years after you open the account, depending on the term you choose. At Ally Bank, this could be three months to five years. The bank may add interest to your account on a fixed schedule. At the end of the CD term, you can choose to renew your CD or receive your original deposit amount in addition to the interest earned over the life of the term.
To make the most of your savings in your 40's, consider opening a CD with an online bank like Ally Bank. Online banks generally offer higher interest rates than traditional banks, according to Bankrate.com, and make it easy to manage your savings.
Ally Bank can help you find a bank CD to help you save for a brighter financial future. Learn more by visiting Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.
Ally Bank, Member FDIC