Because certificate of deposit (CD) interest rates can be higher than those of regular savings accounts, CDs are a worthwhile savings tool and can be a smart way to save for major purchases. But you should be aware of the certificate of deposit withdrawal terms on any account you consider. After all, you don't want to sabotage your savings efforts by paying an early withdrawal penalty.
Before you open a CD, research interest rates, early withdrawal penalties, fees and terms to find a CD that will best help you meet your goals. Plan how much you need to save and how much time you'll need to save it. Then, you can time the withdrawal from your CD to take advantage of optimal earnings by waiting for maturity. In many cases, even though you may be able to afford your purchase sooner than later, it may be a good idea to consider a longer-term CD instead of a shorter-term CD. Not only will you likely earn a better interest rate, waiting a little longer lets your balance grow. Waiting a few months longer might even give you more purchasing power, say, to buy a better model, more accessories or just have some cash leftover to save for something else.
Find the CD that's right for you.
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.