You know saving is important, and you know you want your savings to earn a great rate. So, where do you start? You may want to check out certificates of deposit (CDs). CDs are a common way to keep your principal safe while earning interest—sometimes at a higher rate than money market or savings accounts.

Understand the 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. You can close a CD before the term ends, but you typically will pay an early withdrawal penalty for doing so. Short-term accounts, such as three-, six- and 12-month CDs, usually offer lower interest rates than those with longer terms.

Learn your options.

CDs come in a variety of terms and conditions. Examine your goals carefully to choose a CD that best fits your needs. No-penalty CDs allow you to withdraw your money before the CD's maturity date without incurring a penalty. These can be useful if you like the option of having your funds available in case of emergency or for any other reason. Ally Bank's No Penalty CD is a fixed-rate CD that allows you to withdraw all your money without a penalty, any time after the first six days following the date you funded your account. Plus, you keep the interest earned.High yield CDs have fixed rates that usually run higher than those of average CDs. In general, these may require longer investment periods and a larger minimum deposit—but terms vary significantly from bank to bank. With an Ally Bank High Yield CD, you can open and fund with any amount and always get a competitive rate.”Bump up” CDs give you the option of changing the rate over the term of the CD, allowing you to take advantage of rising rates without having to worry about the potential downward adjustments of a variable rate. Ally Bank offers this type of CD in the form of our 2-year or 4-year Raise Your Rate CDs. With these CDs, you have the option to increase your rate once over the 2-year term or twice over the 4-year term if our rate for your term and balance tier goes up on these CDs.

Choose the right bank.

Online banks like Ally Bank often are able to offer better rates than traditional brick-and-mortar banks because they have lower operating costs. You can bank at your own convenience and many online banks offer the same range of services you find at traditional banks. Whatever your financial goals, it's worth considering a CD from Ally Bank. Learn more by visiting or call live, 24/7 customer care at 877-247-ALLY (2559) today.

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