Not all certificates of deposit (CDs) are created equal, and in order to make the best decision when choosing an account to open, you need to know the basic benefits of all types of CDs.
Traditional CDs have maturity dates ranging from a few months to several years, depending on what your bank offers. Interest rates are generally fixed and may be compounded anywhere from daily to annually. Early withdrawals are almost always subject to penalties.
Some types of CDs require an initial deposit of $100,000 (often called jumbo CDs). While some banks only offer their best CD rates to those who make a large deposit, Ally Bank offers you the same great rate no matter how much you deposit.
An individual retirement account CD, or IRA CD, may offer some of the benefits normally associated with traditional or Roth IRAs. Learn more about Ally Bank IRA CDs, including the High Yield IRA CD and the Raise Your Rate CD.
Liquid or No Penalty
Some people may avoid CDs because they don't want to pay a penalty if they need to access their money before the CD term is up. With the Ally Bank No Penalty CD, you can 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 can help you open a certificate of deposit in just a few easy steps online. Learn more by visiting Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.
Ally Bank, Member FDIC