Becoming familiar with different types of CDs, or certificates of deposit, before opening an account is a smart move. Placing your savings into a CD is a sensible way to maximize your earnings, but it can be confusing to understand the details of the many CDs available.
Online banks like Ally Bank generally offer higher interest rates than brick and mortar banks, but the types of CDs and their respective benefits can differ. Always do your homework and make sure you know the terms and conditions of each product you consider. Three popular choices offered by Ally Bank include:
- High Yield CD: A CD with a fixed rate for a fixed term.
- No Penalty CDs: 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 2-Year CD rate goes up; you have the option to increase your rate twice (two times) if our 4-Year CD rate goes up.
Discover the power of competitive CD rates and great customer service at Allybank.com today or call live, 24/7 customer care at 877-247-ALLY (2559).
Ally Bank, Member FDIC