Find the Best CD Rates with Ally Bank and American Express
By Are you looking for the best CD rates? Certificates of deposit (CDs) are a great way to capitalize on your savings potential and earn a higher interest rate than a traditional savings account. CDs typically offer a fixed, higher interest rate than a typical savings account, allowing a higher yield on your money. However, the money is locked into the account for a predetermined amount of time, and if you withdraw the money early, you’ll have to pay a penalty fee.[0] To help you find the best CD rates, we’ve examined some of the top CD accounts and what you should know before you buy in.
Ally Bank CD: Ally Bank offers a variety of CD options including High Yield CD, Raise Your Rate CD, No Penalty CD and Select CD to meet your needs, along with the Ally Ten Day Best Rate Guarantee.[1] Moreover, this Guarantee is valid upon renewal.[0] The CD accounts offered by Ally boast interest rates that are higher than average, and have a great deal of flexibility in terms.[0] The absence of physical branches with associated overhead costs allows an online-only bank to offer higher interest rates on CDs.[0] This online-only bank offers plentiful ATM access in the United States.[0]
American Express, FDIC Insured: American Express CDs are FDIC insured, and there is no monthly maintenance fee.[2] CD accounts are available in terms from three months to 10 years, with a minimum deposit of $1,000.[0] Early withdrawal penalties vary depending on the length of the CD, ranging from 60 days of interest for 3-month CDs to 540 days of interest for CDs with terms of five years or more.[3]
When you open a CD, you’ll need to determine the length of the fixed “term” that will be established — from three months to a number of years — and the money will be locked for that period of time.[4] It’s important to note that withdrawing cash from one before it matures can result in a cumbersome penalty fee.[4]
For those with long-term savings goals, CDs are a great way to capitalize on earning potential right now.[5] Experts also advise CD laddering, which means opening multiple CDs of different terms, such as a 3-month, 1-year, and 5-year CD, and splitting your money between the three CDs.[1]
0. “Best CD Accounts of February 2023” GOBankingRates, 7 Feb. 2023, https://www.gobankingrates.com/banking/cd-rates/best-cd-rates/
1. “The Best 3-Month CD Rates of February 2023” Business Insider, 10 Feb. 2023, https://www.businessinsider.com/personal-finance/best-3-month-cd-rates
2. “American Express CD Rates Review” Business Insider, 14 Feb. 2023, https://www.businessinsider.com/personal-finance/american-express-cd-rates-review
3. “State Farm CD Rates February 2023 – Forbes Advisor” Forbes, 14 Feb. 2023, https://www.forbes.com/advisor/banking/cds/state-farm-cd-rates/
4. “‘You may want to think about a CD.' Some CDs pay 4.5% or more right now. Should you get one?” MarketWatch, 10 Feb. 2023, https://www.marketwatch.com/picks/you-may-want-to-think-about-a-cd-some-cds-pay-4-5-or-more-right-now-should-you-get-one-01675975850
5. “Could Investing in CDs Be the Best Personal Finance Move Right Now? Experts Weigh In” GOBankingRates, 15 Feb. 2023, https://www.gobankingrates.com/investing/strategy/investing-cds-best-personal-finance-move-right-now-experts-weigh-in
