hlshshdkdhdjd58829 t1_je8ej0y wrote on March 30, 2023 at 3:54 AM

It’s easier to fund CDs at ally if you have a savings, and the savings account is free with I believe no minimums. I would open a savings account, put money in there, then transfer (open) No Penalty CDs. There is literally no downside to doing no penalty vs savings, other than you can’t withdraw money piecemeal. That’s why the other person recommended breaking it up into several separate amounts

clong55 OP t1_jeb5pqk wrote on March 30, 2023 at 7:03 PM

Dumb requestion, difference between CDs vs. Savings accounts is that Savings account is more flexible for withdrawals, correct? And do CDs usually have higher rates than Savings?

MrBalll t1_jebbmwa wrote on March 30, 2023 at 7:41 PM

In its simplest form yes, you have it correct.

EqualSein t1_jebkghu wrote on March 30, 2023 at 8:37 PM

Yes but Ally's No Penalty CD allows you to break it whenever you want and transfer the money to your ally savings account immediately so you get the best of both there.

clong55 OP t1_jebluoe wrote on March 30, 2023 at 8:46 PM

Gotcha. What about Ally's money market account over savings?

EqualSein t1_jebmxxi wrote on March 30, 2023 at 8:52 PM

Only difference besides the interest rate is that money market accounts will give you checks and a debit card while savings accounts won't. You can instantly move money between Ally accounts on the website or in the app so this really shouldn't matter much.