Most retirees keep a good portion of their savings in a low-risk account where their principal and interest are safe, and bank certificates of deposit (CDs) are widely accepted as a good choice. But what are the best certificates of deposit to have during retirement? The answer depends on your personal needs and goals.

Longer-term CDs offer the best rates. Longer-term CDs generally have higher annual percentage yields (APYs) than shorter-term CDs. But it doesn't do you much good to commit to a longer term to get that great rate if you end up having to withdraw your money before the CD matures. That's because the early withdrawal penalty that comes with most CDs could end up eating into your return or even your principal.

Shorter-term CDs offer flexibility of access. If you opt for a shorter term because you will need to access your money in the near future, you could still earn a higher rate than a savings account without tying up your money for too long. Ally Bank offers another solution for when accessibility is your goal: the Ally Bank 11-Month No Penalty CD. This CD allows you to withdraw all your money, including interest earned, without any penalties, any time after the first six days following the date you fund your account.

CD laddering could be the best of both worlds. With CD laddering, you maintain a portfolio of CDs with staggered maturity dates. This way you can choose higher-yield, longer-term CDs because you can have a portion of your money available for your use on a regular basis. To learn more about CD laddering, try our CD ladder calculator.

The best certificate of deposit for you will depend on your personal circumstances. At Ally Bank, we are committed to making saving as easy, secure, and rewarding as it can be. You can open and fund any CD with any amount and earn some of the most competitive rates in the country. Learn more at or call live, 24/7 customer support at 877-247-ALLY (2559) today.

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