Online CDs: What to Look For
Choosing a certificate of deposit
A certificate of deposit (CD) is a sensible savings option that can help you reach your financial goals. Are you saving for a major purchase? Preparing for retirement? Growing your savings for emergencies? Whatever the case, figuring out your savings goals will help you determine which type of CD is best for you.
CD terms vary in length from a couple months to several years. Generally, the longer the CD term, the higher the interest rate. But if you will need to withdraw from the CD after only a few months, you may want to stick to a CD that has a shorter term or consider the Ally Bank No Penalty CD, which 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.
As you research CD rates, you may discover that rates for online CDs consistently outperform CD rates from traditional brick-and-mortar banks. Online banks, such as Ally Bank, don't have the overhead that comes with maintaining branch banks, so we're able to pass the savings on to you in the form of great rates.
Certificates of deposit are a sound way to build your savings, but remember to look not only for the highest CD interest rate available, but also check the terms carefully to make sure you find the CD that fits your financial needs.
Learn more at AllyBank.com or call live, 24/7 customer care at 877-247-ALLY (2559).
Ally Bank, Member FDIC