Certificates of Deposit (CDs) can play an important role in your wealth-building strategy, because CD interest rates are usually better than you can get with a savings, checking or money market account.
In general, the longer the CD term, the higher the interest rate. Rates vary from bank to bank, so it's a good idea to shop around. But be sure to compare more than just annual percentage yields (APYs). Check for things like minimum deposit requirements and withdrawal penalties, too, and make sure your financial institution is a member of the Federal Deposit Insurance Corporation (FDIC). Your deposits in FDIC-member banks are insured up to the maximum amount allowed by law.
You also will want to weigh the risks of being locked into a given interest rate for too long a term in case rates rise. One way to protect against that is with the Ally Bank Raise Your Rate CD. 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. Remember, it’s a good idea to re-examine your CDs before they automatically renew, as interest rates may have changed or your need for the money may have shifted.
With Ally Bank CDs, you'll earn some of the most competitive interest rates available, based on rates published by Bankrate.com. Learn more by visiting Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.
Ally Bank, Member FDIC