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Looking at Ally bank (https://www.ally.com/bank/view-rates/), a 12-month CD has the same APY as a savings account. (9-month CDs are an even lower APY).

Money in a CD is locked up for 12-months, with a penalty for early withdrawal. Money in a Savings can be withdrawn any time, but withdrawals are limited to 6 per statement cycle.

What would be the reason for choosing a CD over a Savings Account? About the only reason I can think of is the interest rate in a CD is locked in, while it is variable (could go down) in a Savings.

What else am I missing?

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About the only reason I can think of is the interest rate in a CD is locked in, while it is variable (could go down) in a Savings.

That is the difference in a nutshell. If you think savings rates are going up, then don't get a CD. But if you want to lock them in, then get a CD.

This assumes that both are FDIC insured. It also assumes you don't have a need to touch the money for the length of the CD.

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