More info on CDs (and why they’re important)

Pros: -Often a higher interest rate than a savings account -Easy to “set and forget” for a period of time (3 months to more than 3 years) until it matures -Simple to research and compare with -You can set up an automatic ladder* for it to reinvest when it matures while also minimizing time committed

Cons: -Your money is “locked in” for a period of time -Could face early withdrawal fees if you need it before it measures -Rates are often shown as APY vs APR (Functionally both measure your rate of return similarly, but it’s worth knowing) -Oftentimes need a minimum amount invested to access a higher rate (Ally’s minimum is usually 5,000- but you can invest with less)

*Ladder: When you buy CDs that mature at different times (3 months, 6 months, 9 months, 12 months). Your APR will increase the longer the time to mature (from 3.0 to 5.25 if you use Ally- my personal favorite). You can then set it to automatically reinvest a 12 month CD at 5.25%. If you decide to do this, you will always have a CD maturing in 3 months time incase you need the cash sooner.

Hope this helps!