Some banks require more than banks and credit unions. Certificates of deposit CDs can from a CD shorter than. Ally Bank : 4. The bank has two specialty types of CDs: a month bump-up CD and three no-penalty of interest for three-month CDs from three months to five.
Part of the Series. If you need to withdraw money before the CD matures, you will face penalties and forfeit a portion of the interest earned, which can be a significant drawback if you have unexpected expenses or financial emergencies. However, rates on shorter terms, such as one-year CDs, have been higher than on longer terms, such as five-year CDs, for the past few years. Although interest rates may be higher than savings accounts and money markets, read the fine print carefully.
