In any comparison of certificates of deposit (CDs), it's important to look at the term length—that is, the amount of time it takes for a CD to reach maturity—as well as the interest rate on the CD. Often, a CD that offers a higher rate of interest comes with a longer term. Since most CDs carry a penalty for withdrawing funds before maturity, it's important to take your cash flow needs into careful consideration before you decide on a CD.

Optimizing your cash assets—having money accessible when you need it and earning interest when you don't—is particularly important when you're retired. It may make little sense to earn a great rate on a CD if you have to commit to a term that's too long or to a minimum opening deposit that's too large.

6-Month Terms vs. Ally Bank No Penalty CD
If you will need access to your funds in the short-term—to pay for fixed expenses like yearly taxes, for example—you might decide on a CD term of 1 year or even a shorter term, such as 6 months. CDs with 6-month terms will almost certainly pay a lower annual percentage yield (APY) than CDs with longer terms, and may even pay a lower APY than other, less-restrictive savings accounts. But for some, the withdrawal penalty that comes with most CDs is an important incentive to keep the money deposited. If that makes sense for you, Ally Bank offers interest rates on 6-month CDs that are among the most competitive in the country.

But if you'd like to do a little better than what you'll find with 6-month CD rates, the 11-Month No Penalty CD from Ally Bank could be the way to go. 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. This gives you a great rate and flexibility as you manage your cash flow needs.

For example, you might choose the No Penalty CD as the first rung in a CD ladder as a way to build a steady stream of income, perhaps during retirement. Not only would you be earning a great rate, you'd be leaving your options open should another need or better opportunity show up during those 11 months. Or you could ride out the 11-months, then explore your options from there—roll the money into another No Penalty CD, another kind of CD entirely or simply withdraw the money.

Whatever you decide, Ally Bank is here to help. With a variety of CDs, our Ally Bank Money Market Account, and Online Savings Account, you’re sure to find a way to meet your financial goals at Ally Bank.

Learn more at or call live, 24/7 customer care at 877-247-ALLY (2559).

Ally Bank, member FDIC

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