Certificates of deposit (CDs) are considered some of the most powerful financial tools out there. They're low-risk, long- or short-term products that offer interest rates that can help you reach your financial goals. These qualities have made them a key component in retirees' financial portfolios. “I call [CDs] financial insurance,” explains Rick Kahler of the Kahler Financial Group in Rapid City, South Dakota. “People who are retired need to know that the income they are depending on in retirement is there, so I often recommend that clients put aside two to four years of income in a low-risk financial vehicle.”

With an appropriate portion of funds in bank CDs, retirees have more flexibility in deciding when to sell stocks—and to avoid selling if the time is wrong. The CD is always there to use first if funds are needed. “They know they have enough years set aside in income [to wait] to where, the chances are, the market will recover,” says Kahler.

Ally Bank is committed to making banking as easy, secure and rewarding as it can be. We offer three types of CDs to fit a variety of savings goals. Take a look at our High Yield CD, No Penalty CD and our Raise Your Rate CDs and see which ones work best for you. Learn more at Ally.com or call live, 24/7 customer support at 877-247-ALLY (2559) today.

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