One of the safest ways to save money at any age is to put it in a certificate of deposit. The benefits of CDs for elderly parents are the same as they are for teens and adults, perhaps even better. After all, elderly parents usually have more to save after a lifetime earning money.
Four major benefits of CDs for an elderly parent are:
- It's a safe way to build money over time. People in this stage of life need to protect the fruits of their life's work, and FDIC-insured bank CDs couldn't be safer.
- CD interest rates are generally higher than savings accounts. This may be one of the biggest benefits of CDs because there's simply no substitute for time and a great rate when it comes to growing your money.
- CDs reinforce good savings habits. CDs usually come with a commitment to leave the money deposited for a fixed term, and they reward patience with a good rate.
- CD laddering is a strong strategy. It's a simple but powerful way to build a steady stream of income from CDs. With it, you divide a larger sum into equal CDs of varying maturity dates so that at regular intervals, you have access to the money. More on CD laddering in the Guide to CD Laddering.
And with some of the most competitive CD interest rates available, as published by Bankrate.com the full line of Ally Bank CDs give you many reasons to love saving with us. Learn more at allybank.com or call live, 24/7 customer service at 877-247-ALLY (2559) today.