Get the Facts Before Changing Your CD Strategies

Should I Change My CD Strategy in a Rebounding Economy?

Certificates of deposit (CDs), can be one of the "basic building blocks" of your finances, according to Wayne Blanchard, a certified financial planner in Orlando, Florida, and a member of the Garrett Planning Network. A CD is valuable in a savings plan "because you can't spend [the funds] easily," he says. With a savings account, Blanchard says, people may deposit and withdraw money more frequently. With a CD, if they have to pay a penalty to get it out, they may not touch it unless it's an emergency.

CDs are useful savings tools for short- and long-term financial planning and can be especially effective for specific goals, like college tuition or a down payment on a home. If the timing of the short-term need is clear, CDs can be purchased to fit those time frames with considerable precision. Your funds will be available when you need them, and earning a great rate while you don’t.

For long-term financial planning needs, CDs are often appropriate for the cash portion of your overall portfolio. To avoid missing out on possible rising interest rates, you can "ladder" your CDs, which simply means spreading funds across several CDs with staggered maturity dates. Or consider the Ally Raise Your Rate CD. With these CDs, you have the option of a one-time rate increase if our Ally Bank 2-Year CD rate goes up; you have the option to increase your rate twice (two times) if our Ally Bank 4-Year CD rate goes up.

Ally Bank makes it easy to make CDs a part of your overall financial plans. With Ally Bank CDs you earn among the most competitive interest rates in the country, all backed by the Ally Bank Ten Day Best Rate Guarantee. Learn more about our High Yield CD, No Penalty CD, and Raise Your Rate CD by visiting Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.