Certificates of deposit (CDs) are a fairly straightforward way to save money, but it's good to consider a few factors so you can make the most of your savings by choosing the best certificate of deposit for your goals.

The first question you should ask yourself is, "When do I need the money?" 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. Also, the longest-term CDs generally pay the highest interest rates.

If you find that CDs work best for your goals, but you still want access to your funds, take a look at Ally Bank’s No Penalty CD. You earn a competitive rate, plus you can withdraw all your money, including interest earned, without penalty, any time after the first six days following the date you fund your CD.

Another factor you might consider as you choose your CD term is where rates are likely headed. Of course, no one can know for sure, but if it looks like rates are going rise in the relative near-term, you might want to get a short-term CD so that you can access those funds and take advantage of higher rates. And be sure to look into Ally Bank’s Raise Your Rate CDs. With Ally Bank’s 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.

Lastly, make sure you know the minimum deposit requirement on each CD you consider. At Ally Bank, you can open and fund any of our CDs with any amount. To learn more, visit AllyBank.com or call live, 24/7 customer care at 877-247-ALLY (2559).

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