Do you want to eat your cake and have it, too?
Well, maybe you can—at least when it comes to savings options. If you like the fixed-rate security of certificates of deposit (CDs), but you’re worried about things like early withdrawal penalties or minimum deposit requirements, look no further.
At Ally Bank, we’re used to challenging the status quo. In fact, as one of the first online-only banks, it’s basically in our DNA. So when it comes to saving money in CDs, we realize the traditional approach doesn’t work for everyone.
Our 11-Month No Penalty CD offers unexpected solutions to common concerns about CDs. Here are three things to know about our No Penalty CD that just may change the way you think about CDs.
1. No more early withdrawal penalties
Let’s just start with the big one: nobody likes to pay unnecessary fees. CDs usually charge early withdrawal fees if you take your money out prior to maturity, in other words, before the term is up.
What if you need access to that money unexpectedly? You don’t want to shoot yourself in the foot by giving up your interest earnings, or worse, some of your principal, by paying a penalty for early withdrawal.
Ally Bank No Penalty CD: The Ally Bank No Penalty CD is just what it sounds like. With this CD, you can withdraw your money, including interest earned, any time after the first six days following the date you fund the account. So, you can get that built-in motivation to save with a CD without the potential cost of an early withdrawal penalty.
2. Minimum balance not required
Many banks require you to have a minimum amount of money to open your CD account. The amounts vary among banks and types of CDs, but some can require more than $10,000. If you’ve been holding out on opening a CD until you reach some elusive balance number, we’re here to tell you that’s not really necessary.
Ally Bank No Penalty CD: You can open an Ally Bank 11-Month No Penalty CD with any amount. Keep in mind that higher balances will earn a higher interest rate, but we know you have to start somewhere.
3. Good things come to those who don’t wait.
Sometimes you want to leave your money alone for a while. It’s easy to lock in a great rate for five years and just “set it and forget it.” While it’s true that longer-term CDs usually come with higher APYs (annual percentage yields), you can still get great interest rates and other CD benefits if you don’t have time to wait around.
Ally Bank No Penalty CD: The No Penalty CD matures in 11 months. That’s enough time to earn some interest without making a long-term commitment. After that you can decide to roll it over at the new rate, withdraw the cash, or maybe choose a different type of CD, depending on your goals.
There’s no such thing as one-size-fits-all.
The Ally Bank No Penalty CD is a great way to save, but it’s just one of several types of CDs you can use to beef up your savings. At Ally Bank, we offer several different types of CDs with a variety of terms tailored to your own personal savings goals.
And no matter which CD—or combination of CDS—you choose, you can count on Ally Bank to offer competitive rates and great customer service. Our deposit accounts are FDIC-insured up to the maximum amount allowed by law.
You also get our Ten Day Best Rate Guarantee: When you fund your CD within 10 days of your open date, you’ll get the best rate we offer for your term and balance tier if our rate goes up within that time.