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. If you decide to withdraw the money before the term is up (maturity), you may have to pay what's known as an early withdrawal penalty.
CDs often offer higher rates than savings accounts, but you should be sure you know the terms and conditions of any account you open, including the amount of the early withdrawal penalty. Some banks will allow you to take out a portion of a CD's balance and leave the rest earning interest as long as you maintain a certain minimum balance. In that case, you would only be subject to a partial withdrawal penalty on the amount that you withdraw. While this kind of CD withdrawal penalty is a bit easier on the wallet than what you'd normally pay for a full withdrawal, you still lose money.
With Ally Bank you have options. The Ally Bank 11-month No Penalty CD allows you to withdraw all your money, including interest earned, without any penalty, any time after the first six days following the date you fund your account. In fact, 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 Ally.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.