Topic Wiki

1) Sign up for Ally Bank at www.ally.com
2) Open up a 3 month CD
3) Wait for it to mature.
4) Renew the CD to 5 years at 1.59% APY, and receive a .25% loyalty bonus, for a total of 1.84% APY.

It's worth it to pay the penalty to withdraw money from a CD prematurely.
Ally has a small, 60 day interest penalty, so that means if you cancel after:
1 year you get a resulting APY of 1.54%
2 years you get a resulting APY of 1.69%

Edit: If you purchase or renew your CD after 12/07/2013, the penalty is going up:
3 years         90 days of interest
4 years         120 days of interest
5 years or longer   150 days of interest
« Last edited by incendia on March 10, 2014, 09:49:22 AM »

Author Topic: How I'm getting almost triple the 1 year CD % rate for 1 year!  (Read 32966 times)

Offline Barryg

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Nov 2012
  • Posts: 1441
  • Total likes: 6
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: Ohio
Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #150 on: July 17, 2013, 11:21:16 AM »
Look at I bonds.
http://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm

I did a brief search using your link and didn't find any clues to how much interest an I bond will pay. Do you know a recent rate (ex. what rate of return, last year or two)? Thanks...

Offline Tax

  • Dansdeals Silver Elite
  • **
  • Join Date: Jul 2013
  • Posts: 77
  • Total likes: 0
  • DansDeals.com Hat Tips 0
    • View Profile
    • 1040 1913
Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #151 on: July 18, 2013, 04:38:14 AM »
I bonds pay a fixed rate (depending on when you buy them) plus the inflation rate. Lets say the base rate is 1% and inflation is 3% you will get 4%, however, if there is no inflation or almost no inflation you donít get too much interest. The good thing about it is that your money is protected against inflation and is guaranteed by the U. S. government and there is no state and city tax. In some cases no federal tax either.

Offline ayman

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Jul 2013
  • Posts: 1380
  • Total likes: 26
  • DansDeals.com Hat Tips 1
  • Gender: Male
    • View Profile
Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #152 on: July 18, 2013, 12:27:00 PM »
just thinking out loud here  :D why would anyone open a short term cd w/ ally when the reg savings account offers a higher yield w/o a penalty.
W/o the bonus .25% for loyalty renewal, I understand how that would be beneficial. Start with a minimal amount and then add more later as has been repeated a few times here. But to stam lock the money for a few months and earn less than reg savings???

Offline Tax

  • Dansdeals Silver Elite
  • **
  • Join Date: Jul 2013
  • Posts: 77
  • Total likes: 0
  • DansDeals.com Hat Tips 0
    • View Profile
    • 1040 1913
Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #153 on: July 18, 2013, 03:32:42 PM »
Municipal bonds pay even more. The only minus that they have is that they are not guaranteed by the Federal government only by the state or municipality where you buy them and they have higher minimum investments. They may even be triple tax free Federal, State, and city.

Offline steeeveknowsbest

  • Dansdeals Platinum Elite + Lifetime Gold Elite
  • ******
  • Join Date: Aug 2011
  • Posts: 945
  • Total likes: 11
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: denver, Co
Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #154 on: July 31, 2013, 03:17:26 PM »
Anyone know if there is  any way to fund an online CD with cash without it going through my checking account?

Offline meshugener

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Feb 2012
  • Posts: 7078
  • Total likes: 39
  • DansDeals.com Hat Tips 4
  • Gender: Female
    • View Profile
  • Location: DDF
  • Programs: Amex Platinum, Chase Freedom 10X10 Exclusives, Avis Presidents Club, National Executive, Hertz 5 Star, Hilton Gold, Accor Platinum, Hyatt Platinum, Marriott Silver, SPG Gold, Club Carlson Gold
Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #155 on: July 31, 2013, 05:15:11 PM »
Most allow you to mail in a check.
Have someone else write you the check or use money orders.
« Last Edit: July 31, 2013, 05:21:01 PM by meshugener »
Love me or hate me. I still love you.

Offline steeeveknowsbest

  • Dansdeals Platinum Elite + Lifetime Gold Elite
  • ******
  • Join Date: Aug 2011
  • Posts: 945
  • Total likes: 11
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: denver, Co
Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #156 on: July 31, 2013, 05:16:41 PM »
Most allow you to mail in a check.
Have someone else right you the check or use money orders.
a money order is exchangeable with a check?

Offline meshugener

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Feb 2012
  • Posts: 7078
  • Total likes: 39
  • DansDeals.com Hat Tips 4
  • Gender: Female
    • View Profile
  • Location: DDF
  • Programs: Amex Platinum, Chase Freedom 10X10 Exclusives, Avis Presidents Club, National Executive, Hertz 5 Star, Hilton Gold, Accor Platinum, Hyatt Platinum, Marriott Silver, SPG Gold, Club Carlson Gold
Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #157 on: July 31, 2013, 05:21:45 PM »
You use the cash to purchase a money order.
Love me or hate me. I still love you.

Offline steeeveknowsbest

  • Dansdeals Platinum Elite + Lifetime Gold Elite
  • ******
  • Join Date: Aug 2011
  • Posts: 945
  • Total likes: 11
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: denver, Co
Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #158 on: July 31, 2013, 05:25:31 PM »
You use the cash to purchase a money order.
i know what a money order is and how to get one

but my question was, when a bank says they will accept a check but they don't specify money orders as well (for instance Ally) can i assume that they mean money order as well?

Offline meshugener

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Feb 2012
  • Posts: 7078
  • Total likes: 39
  • DansDeals.com Hat Tips 4
  • Gender: Female
    • View Profile
  • Location: DDF
  • Programs: Amex Platinum, Chase Freedom 10X10 Exclusives, Avis Presidents Club, National Executive, Hertz 5 Star, Hilton Gold, Accor Platinum, Hyatt Platinum, Marriott Silver, SPG Gold, Club Carlson Gold
Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #159 on: July 31, 2013, 05:31:59 PM »
I don't know the answer for that.

*putpac?
Love me or hate me. I still love you.

Offline Lotofsimcha

  • Dansdeals Gold Elite
  • ***
  • Join Date: May 2009
  • Posts: 158
  • Total likes: 0
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: Chicago
Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #160 on: August 13, 2013, 08:37:34 AM »
Anyone know if there is  any way to fund an online CD with cash without it going through my checking account?

Burn the cash onto the CD ;)
104 Shabbos meals,24 YomTov meals,+50 other Holiday/big meals. Really you want to know why Im fat ??

Offline ayman

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Jul 2013
  • Posts: 1380
  • Total likes: 26
  • DansDeals.com Hat Tips 1
  • Gender: Male
    • View Profile
Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #161 on: August 13, 2013, 09:22:34 AM »
@lotsofsimcha, isn't it 156 shabbos meals??  ;)

Offline ari2955

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: May 2012
  • Posts: 1187
  • Total likes: 0
  • DansDeals.com Hat Tips 1
  • Gender: Male
    • View Profile
Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #162 on: October 20, 2013, 08:23:31 PM »
finishing now the 3 months, but would like to wait another few months before putting a larger amount.
can I do another 3 months and when that expires do the 5yr cd, and get the .25 for the whole?

Offline ayman

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Jul 2013
  • Posts: 1380
  • Total likes: 26
  • DansDeals.com Hat Tips 1
  • Gender: Male
    • View Profile
Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #163 on: October 20, 2013, 09:11:52 PM »
Should be able to. You'll get the .25% now for the next 3 mo.

Offline EJB

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Sep 2012
  • Posts: 4927
  • Total likes: 137
  • DansDeals.com Hat Tips 15
    • View Profile
Ally CD Early Withdrawal Penalty
« Reply #164 on: October 26, 2013, 10:49:38 PM »
Not sure if this has been posted before, but Ally used to be a great CD option because of their relationship bonus (+.25 pp) and low early withdrawal fees (60 days' interest). Starting 12/07, the EWF for a 5-year CD will go up to 150 days' interest!

Damn, my 3-month CD I was keeping until they raised their rates expires mid December! Could I get a relationship bonus if I withdraw the funds and reinvest them in a new CD?

Edit: Mine actually expires late November. Sweet!