What Is a Bank CD?
A bank CD is a certificate of deposit account available at most banks, including Ally Bank. 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.
The Ally Bank No Penalty CD, however, allows you to withdraw all your money, including interest earned, without penalty, any time after the first six days following the date you fund your CD. The Ally Bank No Penalty CD is a good option when you want to make sure you earn a competitive interest rate while being able to access your money.
Why Choose a Bank CD Instead of a Savings Account? The simple answer is that in return for committing your deposit for a certain amount of time, bank CDs sometimes offer higher interest rates than savings accounts. Usually, the longer the term of the CD, the higher the interest rate offered.
Ally Bank offers CD interest rates that are consistently among the most competitive in the country according to Bankrate. We make it easy to compare CD products online before depositing your funds, and we're here to help you find ways to reach your savings goals. Visit Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.
Ally Bank, Member FDIC