Personal financial liquidity is a relative concept: some liquid assets are more liquid than others. Certificates of deposit (CDs), for example, may be more difficult to convert to cash because you usually have to pay an early withdrawal penalty if you withdraw money from the account before the maturity date. At the other end of the spectrum, a checking account is highly liquid because you can access cash very easily. Regardless of how you handle this part of your portfolio, here are three things to think about:

Unexpected expenses are part of life. Doctor bills, car repairs, insurance deductibles—these are all potential debt problems if you don't have an emergency fund. Having the equivalent of 3 to 6 months' living expenses in a separate account, away from your other funds but still easy to get to, may help you avoid the problem of relying on high-interest rate credit card debt when unexpected expenses come up.

Cash is king—no matter what's going on in the economy. You often can negotiate for a better price on many goods and services when you offer to pay in cash. It doesn't have to be a knock-down, drag-out negotiation, either. You'd be surprised at how many times you'll hear "yes" simply by asking, "Is there a cash discount?"

Accessible cash gives you the opportunity to make the most of market opportunities when timing is important. With an optimal mix of liquid assets, you may be able to more quickly invest in undervalued investments as well as take advantage of favorable CD interest rates.

Ally Bank has a number of ways to help you make the most of the power of cash. From our convenient Interest Checking Account and competitive Online Savings Account to a flexible Money Market Account and several types of CDs, we're committed to doing right by you and your money. Learn more by visiting or call live, 24/7 customer care at 877-247-ALLY (2559) today.

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