Factors to Consider When You Compare CDs
Compare Certificates of Deposit
Certificates of deposit (CDs) can be a great way to save for the future. There are several factors to consider when you compare CDs to determine which ones are right for you. "If you go back to the way that certificate of deposit (CDs) were designed, the basic reasoning behind them involved two things-interest rate and time," says Wayne Blanchard, a certified financial planner in Orlando, Florida and member of the Garrett Planning Network. "Your decision involves how much money and how much time you're going to commit to a CD."
While those basic factors still are important, you should also keep in mind that banks have expanded CD offerings over the years to include various features. When you compare CDs, consider factors such as the minimum deposit to open and the penalties involved for early withdrawals. Also consider CDs such as the Ally Bank No Penalty CD, which allows you to withdraw all your money, including interest earned, without penalty, any time after the first six days following the date you fund your account.
Blanchard also points out that some CDs now let you get a one-time increase in the interest rate, which can be important if our rates rise during the life of the CD. At Ally, you can get the Raise Your Rate CD. With Ally Bank Raise Your Rate CDs you have the option of increasing your rate once over the 2-year term or twice over the 4-year term if our rate for your term and balance tier goes up on these CDs. The bottom line is to do your research. "When you are getting a CD, even if it is a basic one, know what the rules are," Blanchard explains. "Make sure you understand the benefits, features and penalties."
Ally Bank makes it easy and straightforward to save money with CDs. We offer CDs in a wide range of terms to help you reach your savings goals. There’s no minimum deposit to open and all of our CDs are backed by the Ally Bank Ten Day Best Rate Guarantee. Whether you're interested in our High Yield CD, No Penalty CD or Raise Your Rate CD, you’ll get rates that are among the most competitive in the country and customer service that makes managing your CDs as simple as possible. Learn more at Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.