As your savings begin to grow, you may begin looking into ways to earn a better return for your money. Certificates of Deposit (CDs) can be a great place to start. With CDs, you keep your money on deposit for a predetermined length of time, in exchange for a higher rate of return than you typically get with traditional savings accounts.

What CD term will give me the best rates?
In general, the longer the CD term, the higher the interest rate. For example, rates for an 18-month CD will generally be greater than 12-month CD rates. A 24-month CD term will generally pay a better annual percentage yield (APY) than 12-month CDs, and so on.

What else should I consider when choosing a CD term length?
According to the interest rates as published by Bankrate, all Ally Bank CDs earn rates that are among the most competitive available in the country, whether you want a 12-month CD or some other term. But choosing a 1-year CD, 5-year CD, or anything in between is more than just a matter of interest rates. As you consider term lengths for your CD, be sure to take the following factors into account.

Access to your money.
Again, 12-month CD rates tend to beat 3- and 6-month CD rates. But if you withdraw money from a CD early, you could incur an early withdrawal penalty, so it's best to consider how soon you might need access to your funds.

Potential interest rate increases.
CD rates are fixed for their entire term. If you were to opt for a longer CD term, you might face the risk of interest rates rising over time, leaving you stuck with slower growth than you desire. Some ways to plan for this might be CD laddering and opting for our 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.

Where can I find out more about CD products?
Consider all your options for 12-month CD rates and beyond, including the great rates available from Ally Bank. Our CDs have no minimum opening deposit requirement, and interest is compounded daily for faster growth. Learn more by visiting or call live, 24/7 customer care at 877-247-ALLY (2559) today.

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