Although it's possible to use certificates of deposit (CDs) as a place to park your emergency fund, it's important to remember that many CDs come with an early withdrawal penalty. The benefits of the higher interest rate you earn with a CD could easily disappear if you need to access the cash before the CD matures.
Is it possible to get the advantages of a CD for your emergency fund without risking the expense of an early withdrawal penalty? With the Ally Bank No Penalty CD, you earn a great rate, and you can withdraw all your money, including interest earned, without any penalty, any time after the first six days following the date you fund your account.
So, how much money should be in your emergency fund? Many financial planners recommend having between six months’ to a year's worth of living expenses on hand in case of emergencies. Carefully consider your own situation to determine an emergency fund you are comfortable with.
No matter what your plans—whether you're starting an emergency fund or saving for a specific goal—Ally Bank has a CD product that can help you reach your goals. Visit AllyBank.com today or call live, 24/7 customer care at 877-247-ALLY (2559).
Ally Bank, Member FDIC