One of the first things many people consider before buying a certificate of deposit (CD) is how long they plan to keep their money in the bank. That's because bank certificate of deposit rates usually are tied to the CD term length. Typically, the longer the term is, the higher its rate.

But is keeping money in a long-term CD always worth the wait? Here are a few things to consider.

Advantages of Long-Term CDs
Because bank certificate of deposit rates tend to be higher the longer you keep money in the bank, your money will usually grow faster in long-term CDs. Long-term CDs also can help some people stick to their savings plan. Since CDs usually carry a penalty for early withdrawal, there's a built-in incentive to stay the course and receive your full return.

What Happens If Rates Go up?
One concern some people have about opening a long-term CD is that bank certificate of deposit rates could rise during the CD's term. One way to avoid missing higher rates is to open a CD that allows you to raise your rate during the CD's term. With Ally Bank’s Raise Your Rate 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.

What If I'm Not Sure When I'll Need Money?
Sometimes it can be hard to predict when you'll need to access money in your CD.One way to keep access to your money easy is to open a CD that allows you to withdraw from the CD before it matures without penalty. The Ally Bank No Penalty CD 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.

Ally Bank Options
At Ally Bank, there's no minimum deposit to open a CD and we compound interest daily for maximum earnings. If you have additional questions about Ally Bank CDs, or if you'd like to find out how to open a CD, visit or call live, 24/7 customer care at 877-247-ALLY (2559) today.

Ally Bank, Member FDIC

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