Bankrate.com and similar websites have changed the way we shop for certificates of deposit (CDs) and other banking products by letting us compare annual percentage yields (APYs) from a number of banks in a matter of seconds. There's no denying the convenience and ease of these helpful online tools. Bankrate CD rates are a great place to start. But be aware that the information you get on these websites is only the first step in smart CD shopping. Once you’ve narrowed your choices, be sure you understand the details of each CD you’re considering.
APY: You already know it’s important to get a great interest rate, but be sure to check the annual percentage yield (or APY) when comparing rates—it reflects both the interest rate and the frequency of compounding interest. The more frequently a financial institution compounds interest, the faster your balance grows. Some banks compound interest on a monthly, quarterly or even annual basis. At Ally Bank, we compound interest daily.
Term: Generally speaking, the longer term CD you choose, the greater the yield on your money. If you can commit to a longer-term CD, you'll likely earn a higher rate on your CD.
Early withdrawal penalty: Most CDs charge penalties for accessing your money before maturity. Be sure you know just what it’ll cost you if you need to withdraw your money before the CD matures.
Minimum opening deposit requirements: Sometimes banks only give you their very best CD rates if you agree to make a minimum deposit.
As you compare CDs, we’re confident you’ll find Ally Bank has CD rates that are among the most competitive in the country, with a variety of terms to fit your individual goals. You can open and fund an Ally Bank CD with any amount, and your deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to the maximum allowed by law.
Learn more by visiting Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.
Ally Bank, Member FDIC