As a young adult, you may be just starting to grow your savings. This often entails planning for your future in terms of education, career and family. While it's easy to forget to plan for the future when dealing with life’s immediate needs, doing so can save you a lot of stress as you get older. Moreover, as a young adult, you have more time for compounding to work in your favor. Bank products like certificates of deposit (CDs) can be a great way to grow your nest egg.
Certificates of Deposit 101
A CD is a time deposit savings product offered by many banks and credit unions. 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. After that time period, your funds become available to you along with interest accrued. At that time you can choose to withdraw those funds, renew the CD or open a new CD for a different term.
Choosing What Works for You
Ally Bank offers a range of CDs to choose from. Consider the following options to determine what works best for you.
- High Yield CD—A CD with our fixed rate for a fixed term.
- No Penalty CD—A CD that 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 Ally Bank 2-Year CD rate goes up; you have the option to increase your rate twice (two times) if our Ally Bank 4-Year CD rate goes up.
At Ally Bank, we've made opening a CD simple and straightforward. Plus, we offer some of the most competitive interest rates available according to Bankrate.com, and we make managing your account online convenient, secure and easy.
From our Interest Checking Account and the Online Savings Account to a full line of CDs and more, Ally Bank has options to help you grow your savings for the future. Learn more at Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.
Ally Bank, Member FDIC