What have you always wondered about the economy? Tell us
Ask Money

CDs

Chris Farrell Jul 31, 2009

Question: I am a 33 year old unemployed librarian (laid-off from part-time professional position end of March 2009) full-time doctoral student. I have about $12,000 in a CD that just came due. Rates are terrible of course, I shouldn’t need the money anytime soon, and I’m trying to figure out the best, but not too risky, place to put this money, which is most of my savings. I’m leaning towards a 9-month Ally Bank CD with a 1.90% rate. Does it even matter at this point what I do with the money as long as it’s safe and secure? I have a separate Roth Ira. Thanks so much. Miriam, Brooklyn, NY

Answer: Ally Bank is the old GMAC bank. The name was changed back in mid-May. I guess the GM name didn’t exactly evoke warm feelings of financial security. The online bank is insured by the FDIC. You’re right, the key is that your money is safe and secure. My only question is whether you want to keep some of the money easily accessible by parking it in the online savings account. This way you won’t have to break the CD contract and absorb a penalty if you need some quick cash.

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.