When you think about what to do with your cash assets, you may be trying to decide whether to open an online savings account, money market account or certificate of deposit (CD). Start by figuring out how much cash you're depositing and for how long. A general rule of thumb is that the more you deposit and the longer it stays deposited, the more interest you'll earn. However, it's also important to think about the likelihood that you'll need to access your cash and the convenience of doing so.

With that in mind, let's look at how each choice measures up:

  • Online savings accounts are a simple, safe and easy way to put money to work. While savings accounts typically don't have the highest interest rates, their simplicity makes them a good option. The Ally Bank Online Savings Account is a great example; it pays a competitive rate of interest without the monthly maintenance fees and minimum opening deposit requirements you'll find at other banks.
  • Money market accounts give you easier access to funds than savings accounts. The Ally Bank Money Market Account, for example, pays the same competitive interest rate you get with the Online Savings Account, but it comes with the added convenience of a debit card and checks.
  • Certificates of Deposit generally pay the better interest rates available, depending on the CD type and term. In return, you agree to leave the money deposited for the entire term—anywhere from a few months to several years. If you need to access your CD before it matures, you'll usually pay an early withdrawal penalty. However, the Ally Bank No Penalty CD is a notable exception. With it, you can withdraw all of your money, including interest earned, without penalty, any time after the first six days following the date you fund your CD.

Managing your cash assets may come down to dividing them among different accounts. One approach is to optimize higher interest-earning accounts with limited funds access while maintaining adequate balances in lower interest-earning accounts for day-to-day needs and short-term savings goals. Explore your options at Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.

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