Understanding certificate of deposit (CD) maturity is key to making the most of your CDs. Knowing how this works can allow you to take your savings strategy to the next level, especially when it comes to renewing or laddering your CDs.

When you open a certificate of deposit (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. Those penalties can eat into your return and even your principal.

As you compare, be sure to consider how the CDs’ maturity dates match your goals. Choosing the longest term possible may give you the highest annual percentage yield (APY), but if you don’t want to tie up your money for the longest term, shorter-term CDs are a great option.

With the Ally Bank 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.

When your certificate of deposit has reached maturity, there are a few things you can do with it:

  • Take the money along with any earned interest and put it towards a purchase or a different savings product.
  • Deposit that money—including the earned interest—into another CD.
  • Build a CD ladder. This involves opening several CDs in a variety of terms, so that each rung of the "ladder" matures at different intervals, allowing you periodic access to your funds.
  • Simply renew your CD.

Ally Bank offers three kinds of CDs—High Yield, No Penalty, and Raise Your Rate CDs—that come in a wide range of terms to suit just about any savings plan. Take a look at what Ally Bank has to offer and make CDs a part of your financial foundation.

Ally Bank, member FDIC

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