CD Rates vs. Stock Market Returns
As part of an overall savings plan, certificates of deposit (CDs) can be the foundation of a low-risk strategy to reach both long- and short-term goals. Simply put, CDs are savings products, not investments, although they can help you build your net worth.
Sometimes people will refer to "CD returns" as a way to describe how interest works to help you grow your balance. But no matter how you phrase it, it's important to understand what you're getting with a CD—an interest rate on your balance for a specific amount of time. Moreover, CDs at member-FDIC banks are insured by the Federal Deposit Insurance Corporation (FDIC) up to the maximum amount by law.
Stability and predictability can be compelling features of CDs. Moreover, you can choose from several different types with different term lengths to meet your savings goals. At Ally Bank, we offer three types of CDs:
- High Yield CD—A CD with our fixed rate for a fixed term.
- No Penalty CD—A CD that allows you to withdraw all your money, including interest earned, without any penalty, any time after the first six days following the date you fund your account.
- Raise Your Rate CDs—With these CDs, you have the option of a one-time rate increase if our 2-Year CD rate goes up; you have the option to increase your rate twice (two times) if our 4-Year CD rate goes up.
Ally Bank offers CD rates that are consistently among the most competitive in the country. You can open and fund your account with any amount. Plus, the Ally Ten Day Best Rate Guarantee gives you the best rate we offer for your CD during the first ten days starting with your open date if you fund your CD within that time.
See how Ally Bank CDs can fit into your savings goals. Learn more at Ally.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.