One of the safest ways to save money at any age is to put it in a certificate of deposit (CD). The benefits of CDs for elderly parents are the same as they are for teens and adults, perhaps even better. After all, elderly parents usually have more to save after a lifetime earning money.
Four major benefits of CDs for an elderly parent include the following.
- CDs are safe. People in this stage of life need to protect the fruits of their life's work, and FDIC-insured bank CDs couldn't be safer.
- CD interest rates are generally higher than savings accounts. This may be one of the biggest benefits of CDs because there's simply no substitute for time and a great rate when it comes to growing your money.
- CDs reinforce good savings habits. CDs usually come with a commitment to leave the money deposited for a fixed term, and they reward patience with a good rate.
- CD laddering is a strong strategy. It's a simple but powerful way to build a steady stream of income from CDs. With it, you divide a larger sum into CDs of varying maturity dates so that you have access to your funds at regular intervals.
At Ally Bank, you earn some of the most competitive interest rates in the country according to Bankrate.com, and your deposits are insured by the FDIC up to the maximum amount allowed by law. Let us help you reach your savings goals. Learn more at Allybank.com or call live, 24/7 customer support at 877-247-ALLY (2559) today.