A certificate of deposit (CD) is a time deposit. 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. A CD generally will earn a higher rate of return the longer you agree to keep your money on deposit. Banks usually offer their highest rates for CDs with longer terms and larger deposits, while 3- and 6-month CD rates tend to be lower.
The Advantages of 6-month CD Rates and an Alternative: The Ally Bank No Penalty CD
CD rates vary, but once you deposit your money into a CD, your interest rate is usually fixed. Opting for a 6-month CD from Ally Bank means you'll get a shorter-term CD with a competitive rate and little risk. That may be right for you, but if you're looking for the same level of security with a higher yield, you have another option. The 11-Month No Penalty CD from Ally Bank 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.
Beyond Interest Rates
When comparing 6-month CD rates from different banks, it certainly makes sense to compare annual percentage yields (APYs) to make sure your money works its hardest. But you should also consider other factors, as well. For example, check out the bank's opening deposit requirements and how often they compound interest. Ally Bank offers competitive CD rates with no minimum opening deposit and we compound interest daily to help your money grow faster.
It's Up to You
When it comes down to it, one size (or CD term length) does not fit all. Whatever your needs, Ally Bank is here to help. With convenient access, a variety of products, great rates and award-winning customer service, Ally Bank can help you reach your financial goals.
Learn more at Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559).
Ally Bank, member FDIC