What's different about Certificates of Deposit (CDs)
CD Rates vs. Stock Market Returns
Why CDs? As part of an overall savings plan, CDs can be the foundation of a low-risk strategy to reach both long- and short-term goals. Simply put, CDs are not investments, although they can help you build your net worth just as potential stock market returns can.
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 currently offer the safety of being insured by the Federal Deposit Insurance Corp. (FDIC) up to the maximum amount by law.
In a recent interview we had with Carl Friedrich, managing principal of Friedrich Wealth Management in Syosset, New York, he said the stability and predictability offered by CDs "is very powerful in the current environment." One reason may be that CDs strike a balance between building savings and access to cash when you need it.
Ally offers a No Penalty CD that provides you easy access to your funds throughout the term of your CD. While they have slightly lower interest rates than our other CD's, they provide the simplest way to get both a competitive interest rate and peace of mind—you won't have to pay a penalty should the need for cash arise after the first six days following the date you fund your account.
Look at Ally's selection of CDs and find one that best meets your needs.