When you want to make the most of your savings, it makes sense to look at all the savings products available to see what interest rates they're offering. But it's also important to weigh other factors to determine what will best suit your financial goals. This article series will compare three different options, beginning with certificates of deposit, or CDs.
If you're familiar with CDs, you know that a CD usually offers a fixed interest rate when you keep your money deposited for a predetermined amount of time. Generally, the longer the term, the higher the annual percentage yield (APY).
If you should need to withdraw your funds before your CD matures, there's usually an early withdrawal penalty. This can work as a built-in incentive to stay the course and get the most out of your money, but it also requires that you plan ahead before committing your funds to a CD.
Ally Bank High Yield CDs offer a great interest rate, CD terms in a variety of lengths, and no minimum opening deposit requirement.
While some people are comfortable purchasing CDs for a term of 1 year, 2 years or even 5 years, this won't work for everyone. If you need to keep your money more accessible, you may decide to opt for a shorter CD term. Or consider our No Penalty CD with an 11 month term, which allows you to withdraw all your money without a penalty, anytime after the first six days following the date you funded your account.
Finally, it is important to look into interest rates as you shop around for a CD—or more precisely, compare the annual percentage yields (APYs). The more often the interest is compounded, the faster your balance will grow, and the greater the APY for a given interest rate. We compound the interest on CDs daily, for maximum growth potential. As a result, our APYs are consistently among the most competitive in the country.
And if you're concerned that choosing a CD with a certain rate will cause you to miss out on an even better rate in the future, consider the Ally Bank Raise Your Rate CDs. With these CDs, you have the option of a one-time rate increase if our Ally 2-Year CD rate goes up; you have the option to increase your rate twice (two times) if our Ally 4-Year CD rate goes up.
When comparing CDs, Ally Bank is a great place to start. Learn more at Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559).