Building a Retirement Income With Bank CDs
Ally Bank CDs Help Provide Growth–and Less Stress–in Retirement
Retirement should mean more than retirement from work. As much as possible, it should also mean retirement from worrying about your finances. After working for decades, no one really wants to spend time fretting about retirement savings. Bank CDs, or certificates of deposit, are a great way to save during retirement.
When you begin investing, many financial planners suggest putting more of your money in higher-risk, higher-return options like the stock market. But as you near retirement, they may advise putting more of your nest egg in financial products that aren't subject to a high degree of fluctuation.
That’s where CDs come in. CDs are recognized and valued as low-risk savings vehicles. They often give you a better interest rate than traditional savings accounts, and calculating your return is simple and straightforward since most CDs offer fixed rates for a fixed term. The longer the term of a bank CD, the higher the rate of return usually is. This security can provide a worry-free part of your retirement income.
And if you're concerned that you'll miss out on a chance for higher returns by locking into a longer term, you can "ladder" your CDs. This simply means dividing your savings equally into several CDs and staggering the terms so they mature at different times.
Ally Bank provides an even more worry-free way to take advantage of any jump in interest rates through our Raise Your Rate CD. 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. And because our rates are consistently among the most competitive in the country, based on rates as published by Bankrate.com, using laddered Ally Bank Raise Your Rate CDs could help you build a steady, worry-free stream of income in retirement.
Learn more about the full line of Ally Bank CDs at AllyBank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.
Ally Bank, member FDIC