What Do Retirees Think the Best CD Accounts Have in Common?

Safety, Accessibility and Interest Rate.

Most retirees agree that the safety of their principal is an important consideration for at least a portion of their savings. Certificates of deposit (CDs) certainly meet that criteria—but which are the best CD accounts for retiree’s needs?

Safety. The safety of your deposit is one of the key attractions of CDs. For that reason, the best CD accounts for sheer peace of mind are Federal Deposit Insurance Corporation (FDIC)-insured.

Accessibility. Because you usually pay a penalty if you access your funds in a CD before the maturity date, it’s important to consider the term of the CD that will work best for your needs. Longer-term CDs typically pay higher interest, but may not be ideal if you’ll need access to your money before that longer term is up. You can mitigate this issue by CD laddering: creating a portfolio of CDs with staggered maturity dates so that a portion of your money is available to you on a regular, scheduled basis. Another option you have is the Ally Bank 11-Month No Penalty CD. This CD gives you the flexibility to withdraw all your money, including interest earned, without any penalties, any time after the first six days following the date you fund your account.

Interest Rates. It’s easy to compare the CD accounts at an online source like Bankrate.com or our own site at Allybank.com. Be sure you understand all the terms of any account you consider.

At Ally Bank, we are committed to making saving as easy, secure, and rewarding as it can be. You can open and fund any CD with any amount and earn some of the most competitive rates in the country. Learn more at Allybank.com or call live, 24/7 customer support at 877-247-ALLY (2559) today.