When you know you have a specific time period in which you won't need access to your savings, you may want to put some of it into a certificate of deposit (CD). As a general rule, CDs often pay a higher interest rate than money market, savings and interest checking accounts. But this advantage comes with some specific conditions, namely that you usually agree to leave your money in a CD until it matures or pay an early withdrawal penalty. Other types of savings accounts and checking accounts offer relatively easy access to funds, but offer lower interest rates.
That's why knowing the time frame for using the funds is important. To a large extent, a decision to open a CD comes down to when you'll need access to your money. CDs can be a smart decision if you know how and when you are going to use the money. For example, CDs work well for saving for a new vehicle, a vacation, or a wedding. CDs offer certainty in rates for the term you choose, while money market or savings account rates are variable and subject to change.
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 Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.