Summary List Placement
Ally Bank (Member FDIC) offers three types of CDs for terms ranging from three months to five years.
Ally CDs are ideal for people who don’t have much money upfront and who want the option of withdrawing funds early for a relatively low fee.
Many banks require an initial deposit or minimum account balance, but you can open an Ally CD with $0.
You may be able to find a slightly higher rate at another bank depending on which type of CD you want, but Ally CDs do offer competitive APYs.
See Business Insider’s picks for the best CDs right now »
Ally Financial is a bank known for operating entirely online and for its high-yield savings account. The bank offers a wide range of CD types, and it’s praised for paying competitive rates and providing customers with an easy-to-use online interface.
A certificate of deposit, or CD, is a type of savings account that holds your money for a set amount of time, and the bank pays you a fixed interest rate on your savings. If you withdraw your money early, you typically forfeit some or all of the interest you’ve earned. With Ally, you can choose from three types of CDs: High Yield CDs, Raise Your Rate CDs, and No Penalty CDs. Each type offers competitive rates, and the one you choose will likely depend on your banking needs.
Ally is offering a 15-month CD for a limited time. If you open a 15-month CD by November 4, 2020, you’ll earn 0.80% APY, and it will automatically renew as a 1-year CD at the end of the term.
Ally currently ranks as our top pick for the best bank overall for opening a CD, but we know “best” can be different for different people. Read on to find out whether an Ally CD is the best match for you.
Should you open an Ally CD?
If you’re searching for a CD with a competitive APY, Ally is a good option. Its rates are relatively high, and if you choose a Raise Your Rate CD, you may be able to increase the APY during its term.
Ally is also a solid choice if you want the option to withdraw money from your CD before it reaches maturity. Ideally, you would leave the money in your CD until the end of the term, but it can be nice to know you have the option to withdraw your funds early without paying too much in fees.
The bank also offers a No Penalty CD, which doesn’t charge any fees if you withdraw your money early. Not all banks offer no-penalty CDs, so if this type of account appeals to you, Ally could be a good fit. No Penalty CDs still offer competitive rates, but in exchange for …read more
Source:: Business Insider