Putting your savings into online certificates of deposit (CDs) is one way to get a higher interest rate than is available from most savings accounts while taking advantage of the convenience banking online gives you. But are there fees to open a CD account online?
Ally Bank, like nearly every bank you'll find, won't charge you “CD fees” in the same way you might normally think of bank fees—the fees you might see with checking or savings accounts, for example. Some people may use the term “CD fee” to refer to an early withdrawal penalty. But that's not really accurate. CDs generally work like this: 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 an early withdrawal penalty. There generally are no fees to maintain your CD account.
So while it's important to know the penalty for early withdrawal on any CD account you consider, your comparison-shopping efforts should probably focus on annual percentage yields (APYs). After all, you want your money to earn as much interest as possible. With Ally Bank CDs you earn among the most competitive interest rates (that are compounded daily) 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.