If you're looking for a safe way to help your savings grow, you might consider certificates of deposit (CDs). This type of savings product can help you stay on top of your saving goals. When you open a CD at a member-FDIC bank, like Ally Bank, your deposits are insured up to the maximum amount allowed by law.

CD basics
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 withdraw the funds before the maturity date, you usually will pay an early withdrawal penalty.

Types of CDs
You can choose from a variety of CDs to meet your needs and budget. At Ally Bank, you can open and fund any CD with any amount. We also offer a variety of CDs:

  • No Penalty CD. This 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.
  • Raise Your Rate CDs. With these CDs, you have the option of a one-time rate increase if our 2-Year CD rate goes up; you have the option to increase your rate twice (two times) if our 4-Year CD rate goes up.
  • High Yield CD. A CD with our fixed rate for a fixed term.

CD laddering
It is possible to enjoy the interest rate of a long-term CD, but still maintain a degree of flexibility and accessibility to your money. A CD ladder is a system that diversifies your money across CDs with varying maturity dates. For example, you might put 20 percent of your funds in five different CDs, each of which would have a different term length. If you chose CDs with term lengths of 12 months, two years, three years, four years and five years, for example, once the 12-month CD matured, you could then renew it in a new five-year CD. Following this process every year would result in a CD maturing every year, allowing you to take advantage of potentially higher long-term rates.

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.

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