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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 33184 times)

Offline Dan

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #30 on: February 09, 2012, 12:22:01 PM »
Why not just do a 5 year at Ally and take the small 2 month penalty when you need the cash?
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Offline MLM

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How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #31 on: February 09, 2012, 01:44:41 PM »
Did anyone try getting the.25 bonus upfront?

Offline Dan

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #32 on: February 09, 2012, 02:02:54 PM »
Did anyone try getting the.25 bonus upfront?
Of course but they won't do it.
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Offline Jay the PRESIDENT

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #33 on: March 19, 2012, 03:57:33 PM »
what exactly is the .25 bonus

Offline Shmulyg

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #34 on: November 04, 2012, 02:12:19 AM »
Does anyone know if the .25 renewal bonus still exists?

Also, now that their 5-year CD rate fell to 1.64%, is this still the best offer even with the .25 renewal bonus?

Offline meshugener

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #35 on: November 04, 2012, 02:30:17 AM »
+1
Looking for the best parking lot for around 60k.
My local bank offers 2% APY for an annuity fund, locked for 5 years, but I can withdraw 10% of the principal each year with no penalties.
Good?
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Offline Dan

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #36 on: November 04, 2012, 08:17:18 AM »
Ally .25 is alive and well and their CD termination is still just 60 days interest.
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Offline Shmulyg

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #37 on: November 04, 2012, 09:17:21 AM »
Ally .25 is alive and well and their CD termination is still just 60 days interest.

Just to be sure: It's the "High Yield CD" i'm applying for? (they have many different types...)

Offline Yeki89

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #38 on: November 04, 2012, 09:29:41 AM »
Is it only on a #3 month, or any product you pick (say 6 month) , the next time u can get the bonus.

Offline Shmulyg

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #39 on: November 04, 2012, 09:38:56 AM »
Is it only on a #3 month, or any product you pick (say 6 month) , the next time u can get the bonus.
Why would you want to wait more than 3 months for the higher yield?

Offline Dan

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #40 on: November 04, 2012, 09:48:19 AM »
Why would you want to wait more than 3 months for the higher yield?
+1, but it works on any product.
And there's no problem adding any amount of funds when the 3 months expires or changing it to any new length at that point.
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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #41 on: November 04, 2012, 09:58:29 AM »
Just to be sure: It's the "High Yield CD" i'm applying for? (they have many different types...)

I have the same question.
can someone please give link?

thanks
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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #42 on: November 04, 2012, 11:41:52 AM »
Why not just do a 5 year at Ally and take the small 2 month penalty when you need the cash?

How would I go about figuring out the resulting apy (after 60 day penalty is assessed) if I were to pull the funds lets say 6 months, 1 year, 1.5 years, and 2 years from opening date? Assume current 1.64 apy +.25 bonus. Anybody know? They compound the interest daily so Im thinking its a bit more complicated than simple mathematics.

Also is the penalty assessed on the funds you pull or the whole balance?
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Offline Dan

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #43 on: November 04, 2012, 11:49:06 AM »
Why do you need to know the exact number?
Just figure that if you have $50K at 2% APY that you're earning $1,000 interest per year or about $83.33 interest per month, so early withdrawal would mean a $166.67 penalty in that case.

ETA:
After 1 year that would mean a resulting APY of 1.67% (833.33/50,000).
After 2 years  that would mean a resulting APY of 1.82% (1,832.33/50,000/2).
« Last Edit: November 04, 2012, 12:00:44 PM by Dan »
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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #44 on: November 04, 2012, 11:50:48 AM »
Why do you need to know the exact number?
Just figure that if you have $50K at 2% APY that you're earning $1,000 interest per year or about $83.33 interest per month, so early withdrawal would mean a $166.67 penalty in that case.

I generally like to know exact numbers. Just my nature. Doesn't matter that much I guess.

More importantly what is the penalty assessed on? Whats removed or the whole balance?
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