Certificates of deposit (CDs) with longer terms generally have higher rates than those with shorter terms. But is locking into a 4-year CD rate a good idea? That depends on your financial goals.

When you open a CD, you agree that you will not withdraw the funds until the maturity date, which varies from a few months to several years after you open the account, depending on the term you choose. You can close a CD before the term ends, but you typically will pay an early withdrawal penalty for doing so. If you're fairly certain you won't need access to your money, a 4-year CD might work well for your savings plan. But what if rates rise before your CD matures? Are you stuck with the rate you got when you opened the account?

At Ally Bank, you have options.
Ally Bank CDs offer rates that are consistently among the most competitive in the country according to rates published on MyBankTracker. Plus, we have a variety of choices that can meet a variety of financial goals:

  • Raise Your Rate CD: With our Raise Your Rate CDs, you have the option of a one-time rate increase if our Ally 2-Year CD rate goes up; you have the option to increase your rate twice (two times) if our Ally 4-Year CD rate goes up.
  • High Yield CD: A CD with our highest fixed CD rate for a fixed term–anywhere from three months to five years.
  • No Penalty CD: The Ally Bank 11-month No Penalty CD 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.

And if you're not ready for a CD or accessibility is your first priority, look to the Ally Bank Money Market Account and Online Savings Account for great rates and flexibility. Learn more at Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559).

Ally Bank, member FDIC

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