To a large extent, certificate of deposit (CD) management begins by determining first, what your goals are, and second, how long you can afford to put the money away. In general, CDs are used when you don't want to put your money at risk and you don't need to use it in the immediate future. For example:

  • CDs may be used to provide a conservative offset to the higher-risk assets in your portfolio.
  • Some people use CDs to hold part of their household emergency fund, with the equivalent of perhaps three months' expenses in regular savings and three months' worth in a six-month CD.
  • Because they generally provide a predictable return in a predetermined timeframe, CDs are especially useful when saving for a specific event, such as a vacation or a wedding.

If you are concerned about the possibility of missing out on rising interest rates, you might consider “bump-up” CDs, such as the Ally Bank Raise Your Rate CD. With this CD you have the option of a one-time rate increase if our 2-Year CD rate goes up; you have the option to increase your rate twice (two times) if our 4-Year CD rate goes up.

Or, you might think about a CD ladder as a way to guard against changing rates. For example, if you had $60,000 in savings, you could spread that amount evenly across four certificates of deposit with different maturity dates, giving you one-, two-, three- and four-year accounts. Then, when each comes due, you have the option to redeposit it at the new rate. Once your CDs are in place, your job is more or less done. But there is one thing to keep an eye on: the maturity dates. Often, maturing certificates of deposit are automatically renewed at the new prevailing interest rate if the depositor takes no action. Keep track of those maturity dates on your own so you can decide what to do with the balance when the terms are up.

Ally Bank offers CDs in a wide range of terms to help you reach your savings goals. There's no minimum deposit to open and all of our CDs are backed by the Ally Bank Ten Day Best Rate Guarantee. Whether you're interested in our High Yield CD, No Penalty CD or Raise Your Rate CD, you'll get rates that are among the most competitive in the country and customer service that makes managing your CDs as simple as possible. Learn more at or call live, 24/7 customer care at 877-247-ALLY (2559) today.

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