Are All High Interest CDs Essentially the Same?
How to Buy High Interest Rate CDs
Buying a high interest rate CD is a rather straightforward process, whether you deposit your funds with a traditional brick-and-mortar bank or with an online bank like Ally Bank. But because "high interest rate" is a relative term, rates vary from bank to bank, and your first step should be to think about your financial goals.
High Interest Rate CDs and Your Financial Goals: Be Specific
The need to be specific about your goals cannot be overstated. You should know not only how much you want to save, but also how much time you have. High interest rate CDs—at least the highest among them—typically require a longer deposit term. Spending the necessary time to create well-defined goals saves you from underestimating your needs in light of your overall budget. More importantly, it could also save you from having to pay early withdrawal penalties.
Do Some Comparison Shopping with the High Interest Rate CDs You Find
With your goals in mind, it's time to do some rate comparison-shopping. Most banks publish their current CD rates online, but while rate shopping is a good place to start, it's not the place to stop. You need to know what else you're getting, so make sure you understand the terms of the CD. Sometimes the rate you see is only available in a certain state or comes with a high minimum deposit or longer term than your goals call for. Also be sure to research the early withdrawal penalties in case you need to withdraw your funds before your CD matures.
Finally, take time to get to know the bank. Check out its website and find out about things like its history, policies, and customer service reputation.
Ally Bank has a wide range of CD products for many different needs at rates that are consistently among the most competitive in the country according to MyBankTracker. Plus, the Ally Ten Day Best Rate Guarantee for CDs gives you the best rate we offer for your CD term during the ten days starting with your CD open date, provided you fund your CD within that time. And your deposits at Ally Bank are insured by the Federal Deposit Insurance Corporation (FDIC) up to the maximum allowed by law.
Take a moment to learn more about the Ally Bank High Yield CD and our other CD products. Visit Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.
Ally Bank, Member FDIC