A certificate of deposit (CD) can be a good basic savings product. CDs usually offer higher rates than money market or savings accounts. And because you may be charged a penalty if you withdraw funds before a CD matures, there is an added incentive to leave the deposit where it is and allow your funds to accrue interest. With savings accounts, you may withdraw money more frequently, making it more challenging to let your balance grow.

CDs are useful savings tools for short- and long-term financial planning and can be especially effective for specific goals, like college tuition or a down payment on a home. If the timing of the short-term need is clear, CDs can be purchased to fit those time frames with considerable precision. Your funds will be available when you need them, and earning a great rate while you don't.

For long-term financial planning needs, CDs are often appropriate for the cash portion of your overall portfolio. To avoid missing out on possible rising interest rates, you can “ladder” your CDs, which simply means spreading funds across several CDs with staggered maturity dates. Or consider the Ally Raise Your Rate CD. With these CDs, you have the option of a one-time rate increase if our Ally Bank 2-Year CD rate goes up; you have the option to increase your rate twice (two times) if our Ally Bank 4-Year CD rate goes up.

Ally Bank makes it easy to make CDs a part of your overall financial plans. With Ally Bank CDs you earn among the most competitive interest rates in the country, all backed by the Ally Bank Ten Day Best Rate Guarantee. Learn more about our High Yield CD, No Penalty CD, and Raise Your Rate CD by visiting Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.

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