Maximize Your Savings Potential with CDs

Are you looking to capitalize on your savings potential?[0] Certificates of deposit, or CDs, are a great way to do just that.[1] They are safe investments established through a bank or credit union that offer higher interest rates than traditional savings accounts — currently more than 4% — allowing you to make more on your return. But there are some things to consider before opening up a CD, as the term,s of the agreement are specific.[0]

When opening a CD, you will select the duration of the “term,” in which your funds will be locked in before becoming available.[2] The term,s offered on typical CDs are typically one, three, and five years, with 3-month and 6-month options available.[3] The more you have, the more APY you generate.[0] It’s important to note that CDs effectively tie your money up for anywhere from a few months to several years, and withdrawing cash from one before it matures can result in a cumbersome penalty fee.[4]

In light of the federal funds rate ratcheting up since last March, interest rates on CDs have skyrocketed.[5] The highest rate on a nationally available 3-year CD was 1.11% in December 2021, and today the top-paying 36-month certificate boasts a rate of 4.84%.[5] This means it is making increasing sense to consider locking in the best CD rates you can find in the coming months, as the federal funds rate may peak during the summer.[2]

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.[1] They tout above-average interest rates on their CD accounts, along with plenty of flexibility on term,s.[0] Plus, you can open an account for no minimum deposit.

It’s also possible to open multiple CDs at once and stagger the term,s and deposits so that you can have access to some of the money sooner and avoid getting stuck in one long-term, CD if interest rates begin to rise.[0] Instead of investing the entire $3,000 in a single long-term, Certificate of Deposit (CD), you could opt to divide the amount and place $1,000 each in a 6-month CD, a 1-year CD, and a 3-year CD, allowing you to benefit from investments while also having access to your funds earlier.[0]

0. “Best CD Accounts of February 2023” GOBankingRates, 7 Feb. 2023,

1. “The Best 3-Month CD Rates of February 2023” Business Insider, 10 Feb. 2023,

2. “‘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,

3. “American Express CD Rates Review” Business Insider, 14 Feb. 2023,

4. “State Farm CD Rates February 2023 – Forbes Advisor” Forbes, 14 Feb. 2023,

5. “CD Rate Trends, Week of February 6: Rates mixed” Investopedia, 7 Feb. 2023,