When you open a certificate of deposit (CD), the bank lends the money out to earn interest. The bank pays you interest for the use of your funds. Generally, the longer you're willing to leave money in a certificate of deposit, the better the annual percentage yield (APY) you're likely to get. At the end of the CD term—the CD maturity date—you have the option to withdraw the principal plus interest.
To renew or not to renew?
When a certificate of deposit reaches the maturity date, you decide what you want to do with it. Most banks—including Ally Bank—give you the option of renewing automatically into a new CD at the new rate. You may want to compare current interest rates to be sure you're getting the best bang for your buck. Ally Bank offers rates that are consistently among the most competitive in the country. You can even compare our rates with those of some of our competitors on our website.
How do I keep track of CD maturity dates?
You'll want to be sure you keep track of your CD maturity dates so you're ready to make the right decision with your money at the right time. Ally Bank is an online bank, so keeping tabs on your money couldn't be easier. In fact, we can help you open a CD account in a few easy steps online and we'll alert you when each CD is about to mature.
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.