CDs

Opening a Certificate of Deposit Account 101

A certificate of deposit, commonly referred to as a CD, is an interest-bearing deposit account offered by banks and credit unions. Unlike a variable-rate savings account where the interest rate may fluctuate, most CDs offer a fixed annual percentage yield (APY). The APY on a CD can be higher than a savings account. When you […]

CDs

Savings Synergy: High Yield CD Account Plus a Money Market Account

A savings plan is a personal thing. How you build it depends on your own financial goals and situation. While many people like the rates that come with a high yield certificate of deposit (CD) account, they also see the appeal of the easy access that comes with a product like a money market account. […]

CDs

CD Risk

Certificates of deposit (CDs) are one of the safest ways to save. The FDIC (Federal Deposit Insurance Corporation) insures deposit accounts, including CDs, at member banks like Ally Bank up to the maximum allowed by law. As a result, CD risk is very low. In general, when you deposit money into a CD, your money […]

CDs

Make Buying a CD Worry-Free With a Certificate of Deposit Calculator

Use a CD calculator to determine earnings.Choosing the right certificate of deposit (CD) doesn't have to be complicated. Using a certificate of deposit calculator can simplify the process. A CD calculator allows you to accurately compare CDs of varying interest rates and varying terms. With only a few keystrokes, you can input basic information and […]

CDs

Make Your CD Savings More Secure

Combining long- and short-term Certificates of Deposit (CDs) is known as CD laddering. For example, rather than put $40,000 into a four-year CD, you might put $10,000 into four separate CDs—a one-year, an eighteen-month, a three-year and a four-year. When the first CD matures, you reinvest it in a four-year CD, repeating the process with […]

CDs

How Risky Are Certificates of Deposit?

When you're talking about financial products, “risk” essentially means that you might lose money or simply miss opportunities to make money. With that in mind, certificates of deposit (CDs) are considered low-risk, but they aren't risk-free, according to Robert Schmansky, an independent certified financial planner in Royal Oak, Michigan. He explains, “It comes down to […]

CDs

Are There Any Drawbacks to Certificates of Deposit?

Saving money for the future is always a good idea, but there are some things you should consider before opening a certificate of deposit (CD). A CD from an FDIC-member bank like Ally Bank is one of the best ways to save money for the future. Your money is insured up to the maximum allowed […]

CDs

Why CDs?

As part of an overall savings plan, certificates of deposit (CDs) can be the foundation of a low-risk strategy to reach both long- and short-term goals. Simply put, CDs are savings products, not investments, although they can help you build your net worth. Sometimes people will refer to "CD returns" as a way to describe […]

CDs

Get the Facts Before Changing Your CD Strategies

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 […]

CDs

Pros and Cons of Certificates of Deposit

Considering a certificate of deposit (CD)as a savings option? As with any financial decision, you should weigh the pros and cons of CDs before you open an account. A CD is an easy, sensible way of saving money and earning interest. You'll find CD products at banks or credit unions. Online banks often offer some […]