Although funds in both savings accounts and certificates of deposit (CDs) are usually FDIC-insured and benefit from compounded interest, there may be advantages to choosing one over the other.

CDs may have higher interest rates.
To begin with, bank CDs tend to pay higher interest rates than regular savings accounts—depending on the CD term. Ally Bank can help you compare interest rates on different types of savings accounts versus CDs with various maturities right on our site. In addition, you'll see how our rates stack up against those of our competitors.

CDs can help you stay disciplined.
When you deposit money into a CD, you make a commitment to leave your money deposited for a set period of time—anywhere from a few months to several years. In that way, CDs help you maintain a disciplined approach to saving. Should you need to withdraw the money early, you almost always will pay an early withdrawal penalty. Keep in mind that you generally will earn the best interest rates when you deposit a higher balance for a longer term.

Only you can decide whether CDs, savings accounts or a combination of both will be the best way to reach your financial goals. Ally Bank is here to help. Explore your options at or call live, 24/7 customer care at 877-247-ALLY (2559) today.

Ally Bank, member FDIC

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