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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 33199 times)

Offline mordylich

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #15 on: January 26, 2012, 05:37:25 PM »
I can't believe you'd do that (even with the meager penalty which means you can withdraw as soon as you find something more worthwhile), at these rates you aren't even beating the conservative inflation estimates (e.g. CPI) which IMHO are rigged (apparently Ron Paul agrees, not that I care).
  well, given that the fed predicts about 2% over the next 18 months, I think Dan will come out a tenth of one percentage point ahead...

Offline Dan

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #16 on: January 26, 2012, 05:41:19 PM »
I can't believe you'd do that (even with the meager penalty which means you can withdraw as soon as you find something more worthwhile), at these rates you aren't even beating the conservative inflation estimates (e.g. CPI) which IMHO are rigged (apparently Ron Paul agrees, not that I care).
Better place to safely park money?
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.

Offline AsherO

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #17 on: January 26, 2012, 06:05:00 PM »
Better place to safely park money?

I honestly don't have one, but I figured you'd find one. BankDirect no longer worth it (or are you maxxed out?)? I don't mean to pry, just trying to clarify.

There are often better (teaser) rates and if you don't mind switching banks all the time you can probably do 3%+ if you're prudent, though I'm not sure it's worth the hassle.
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Offline SoCal Dude

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #18 on: January 26, 2012, 10:16:57 PM »
Wow, what did I start?  Dan, I wasn't sure where to originally post this.  Is "Deals/Deal Request" the best category for it or should there be another category for financial or non-traveling deals.  Good stuff from you.  60 day early withdrawal penalty.  That's nice, short & sweet! Cheers! 8)

Offline AsherO

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #19 on: January 29, 2012, 03:14:23 PM »
FYI, Cap1 Bank offers 1% (up to $100k , rate locked in for a year) on their no fee checking account.
PGF24BMGS

Offline bubkiz

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #20 on: January 29, 2012, 11:38:24 PM »
Better deal, Ally only has a 60 day interest penalty.
The 5 year CD there earns 1.79% APY, but if you first open a 3 month CD and wait for it to mature and renew the CD (you can change it from 3 month to any other length in the process) you get a .25% loyalty bonus, bringing the APY to 2.04%
Do they do a hard pull?

Offline Dan

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #21 on: January 29, 2012, 11:44:17 PM »
Do they do a hard pull?
Not IME on a CD.
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.

Offline bubkiz

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #22 on: January 29, 2012, 11:47:15 PM »
Not IME on a CD.
Thanx! Just signed, finally will be able to take the money out from under the mattress  :)

Offline AsherO

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #23 on: January 30, 2012, 09:15:18 AM »
Not IME

+1

Compared to other banks, Ally is a breeze to deal with (IME), I'm confident that if you ask their CSRs they will confirm that they don't pull credit for savings/CD accounts.
PGF24BMGS

Offline Dan

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #24 on: February 08, 2012, 02:53:56 PM »
My Ally CD just rolled over from 3 months to 5 years.
I was able to ACH funds in during the 10 day window.
My new APY is 2.05% after the loyalty bonus.
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.

Offline Brookleneze

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #25 on: February 09, 2012, 12:44:19 AM »
Thanx! Just signed, finally will be able to take the money out from under the mattress  :)
For real?
What about this?

Offline Smartypantz

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #26 on: February 09, 2012, 11:16:37 AM »
Just FYI at Trustco Bank, they give .85% for savings account, no minimum, no monthly fee, can take out whenever u want! one of the safest ways to earn gauranteed interest with no penalties/risk of loss/etc.

Offline AsherO

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #27 on: February 09, 2012, 11:20:22 AM »
Just FYI at Trustco Bank, they give .85% for savings account, no minimum, no monthly fee, can take out whenever u want! one of the safest ways to earn gauranteed interest with no penalties/risk of loss/etc.

Ally's No Penalty CD pays .91%, which is better.

There's a downside vs. TrustCo, where at TrustCo you could keep depositing.
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Offline Smartypantz

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #28 on: February 09, 2012, 11:26:45 AM »
Ally's No Penalty CD pays .91%, which is better.

There's a downside vs. TrustCo, where at TrustCo you could keep depositing.

and the interst is compounded daily at ally! that is excellent !

Offline AsherO

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #29 on: February 09, 2012, 11:35:08 AM »
and the interst is compounded daily at ally! that is excellent !

But if I withdraw early, do they post all the interest accrued until that date, or do they post the (daily compounded) interest at set intervals (e.g. weekly/monthly/quarterly)?

Also, since it's APY then if you keep your money in for the perm of the CD (11 months) then it doesn't really matter how it's compounded.
PGF24BMGS