Update: 01.03.18 rate has decreased to a maximum of 1.6% now
Reposting 12/19/17 since rate has increased again, up to 1.75% now.
Reposting 12/14/17 since top rate increased to 1.60% APY from 1.5%. They also offer a ten day guarantee so if the rate increases within 10 days of funding account they will automatically increase the APY after that ten day period.
Offer at a glance
- Interest Rate:Â Up to 1.6% APY
- Minimum Balance:Â None
- Maximum Balance:Â None
- Availability:Â Nationwide
- Insured:Â FDIC
The Offer
- Ally Bank offers 11 month certificated deposits with the following rates:
- 1.15%Â for opening deposits less than $5,00
- 1.35%Â for opening deposits $5,000-$25,000
- 1.75%Â for opening deposits $25,000+
The Fine Print
- As long as the account isn’t closed within the first six days you keep the interest earned with no penalties
Our Verdict
Interest rates on savings accounts are on the increase, the best high yield savings accounts are currently offering 1.30% so this CD is slightly better at 1.5% for deposits of $25,000. My recommendation is to focus on the rewards accounts that offer up to 5% APY instead. Also as noted in the comments you must withdraw the full amount from the CD, no partial withdrawals.
Hat tip to @FiSnowball
down to 1.4 – 1.55 now for best rate. Surprised they didn’t flat out reduce this even lower actually
Ally Bank No penalty, 11 month CD is now at 1.85% (dropped from 1.90%), $25,000 minimum.
The interest rate is now 2.00% APY for all saving account tiers.
drop to 1.5%. Discover increase to 1.40%/1.45%
Looks like its back down to 1.6% APY
Yup, updated post.
I just got an e-mail for a 12 month Ally CD for 2%
I assume this has a penalty for withdrawing tho?
Yes, the 12-month High Yield has a early withdrawal penalty of 60 days interest. However, you need to deposit a minimum of $25k for the 1.75% No-Penalty CD rate, and the 2% rate is for a CD of any amount. If you think you may need part of the money in the somewhat near future but probably not all of it, it may make more sense to open multiple small 12-month CDs and pay the EWP on just some of the CDs if you need to pull some cash out.
I think the 2% offer is the better one (best IMHO for short term overall ATM) since there are no minimums and 60 day penalty is lower than the 90 days that C1 has.
I just got the same offer too, yesterday
FYI, It’s a public offer. Not targeted.
Opened 11 days ago! Noooooooo
I feel you. I had one renew on the 4th and the grace period ended on the 14th. I decided to pay the EWP because the rate increase and shorter term are worth it for me.
Can I break/close a ally CD online or do I have to do it over the phone?
YOu can close online. look or manage cd
I just did an early withdrawal on one of my CDs to upgrade it to a promo rate. It was very simple to do online and the funds were immediately available in my checking account.
Last week I just closed my old 1.50% CD and opened up with 1.60% and now is 1.75%?? Would it look bad if I closed the new one? I might as well keep it full term and very likely it will be higher in 12 months. No point in chasing rates.
They have the 10 day guarantee on rate increases, so it should automatically become the new higher rate according to their marketing. You might want to contact them if it doesn’t.
Thats great to hear. I will have a chat with them. Thanks!!
I am in the same boat. I believe that’s where 10 days guarantee should kick in. Not sure though if that will be done automatically. I would call in to verify
Ally confirmed the 10 day Best Rate guarantee . The rate will change to the highest rate after the 10 day time frame after account is opened and deposit is made.
Thanks for the info!
Is it possible to open/close one or more of these without a regular ALLY account? Also, will they allow multiple CD accounts with only one CHEX inquiry for the initial account? Perfect timing for 2018, can let the interest post 12/31 on external accounts and move funds right on over.