Certificates of deposit (CDs) used to be one-size-fits-all. (Has that ever worked out?) Times have changed—now you can find different types of CDs with a variety of terms tailored to your personal savings goals. Here’s how to know which CD to get to help you create your own unique savings strategy.

Get a handle on CD basics.

A CD is a deposit account, like a savings account. But when you open a CD, you deposit a fixed amount of money for a specific period of time. When the time is up, the CD has “matured,” and you can cash it out or “roll it over” for another term.

CDs with longer terms usually offer higher annual percentage yields (APYs). You can close a CD before the term ends, but you typically will pay an early withdrawal penalty for doing so.

Do some savings soul searching.

Choosing the right CD requires you to get real about your savings goals. Are you saving for a special anniversary trip in five years? Do you need a safe place for that emergency fund to grow? How long can you feasibly go without access to that balance?

Get out your bank statements, calendar, and maybe your bucket list, and answer these three questions:

  • How much do you have?
  • How long can you keep it tied up?
  • What’s your main priority: flexibility or yield?

Choose the best CD for your goals.

Once you have your goals outlined, you can make some solid decisions with your funds. At Ally Bank, we believe in giving you as many opportunities as possible to help your money grow. That’s why we offer three different types of CDs with varying terms: our High Yield CD, 11-Month No Penalty CD, and our Raise-Your-Rate CDs.

We developed this handy flowchart to help you decide which might be right for you:

Of course, you don’t have to choose just one. You can open different CDs for different goals, and even layer them in a CD ladder to keep a portion of your money accessible on a regular basis.


Compare Ally Bank CDs

Ally Bank has your back.

No matter which CD—or combination of CDS—you choose, you can count on Ally Bank to offer competitive rates and great customer service. Most of our CDs have no minimum deposit required. You also get our Ten Day Best Rate Guarantee with every CD: When you fund your CD within 10 days of your open date, you’ll get the best rate we offer for your term and balance tier if our rate goes up within that time. The Ally Ten Day Best Rate Guarantee also applies at renewal.

And of course, if CDs aren’t the best fit for you right now, we have lots of other ways to help you save. Explore your options with our Online Savings Account and Money Market Account.