How a Certificate of Deposit (CD) Account Helps You Save Money

What Are the Benefits of Opening a CD account?

You may hear certificates of deposit, or CDs, referred to as "CD savings accounts," even though that’s not quite accurate. CDs and savings accounts are two different kinds of savings accounts. Regardless of what you call them, CDs have long been a solid way to save money and they can play an important role in any well-thought out financial strategy.

Most people want a percentage of their financial portfolios in cash, and CDs can be a way to get great rates and reliable returns, along with the security of knowing your deposits are insured by the FDIC up to the maximum amount allowed by law. With a CD, however, you almost always agree to keep your money deposited until maturity or pay an early withdrawal penalty. CDs with longer terms usually have the higher annual percentage yields (APYs).

Ally Bank offers a range of CDs that can help you reach your savings goals. Our High Yield CD, Raise Your Rate CD, and No Penalty CD consistently come with rates among the most competitive in the country according to Bankrate.com. Visit Allybank.com or call live, 24/7 customer support at 877-247-ALLY (2559) to learn more today.