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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 33482 times)

Offline Barryg

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #90 on: January 16, 2013, 04:22:33 PM »
Sometimes I prefer the simple checking account.
I also met someone that wants a simple credit card, just simple, no points miles or perks... Oh wait, I didn't.

Offline churnbabychurn

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #91 on: January 16, 2013, 07:45:23 PM »
amex savings account is very simple, .09% apr

Offline Barryg

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #92 on: January 16, 2013, 08:50:07 PM »
amex savings account is very simple, .09% .90% apr
FTFY
Don't know what the zero is for...

Offline churnbabychurn

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #93 on: January 16, 2013, 11:10:27 PM »
right

Offline yuneeq

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Re: Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #94 on: January 17, 2013, 01:31:55 AM »
A checking account is great. But it's a shame to keep more than you need in there.
Whatever I don't need in there is use for investments.
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Offline yuneeq

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #95 on: January 28, 2013, 11:03:08 AM »
Started the wiki.
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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 #96 on: January 28, 2013, 12:18:58 PM »
Started the wiki.
Currently 1.59+.25=1.84
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 yuneeq

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #97 on: January 28, 2013, 12:36:20 PM »
Currently 1.59+.25=1.84

Corrected the wiki. Can someone check my math?  ::)
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Offline yos9694

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #98 on: January 28, 2013, 12:55:06 PM »
Your math is fine, though your answers are off by a basis point (immaterial).
1 year = 1.5357 = 1.54%
2 year = 1.6905 = 1.69%

Offline Dan

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #99 on: January 28, 2013, 12:55:33 PM »
1 year at 1.53 looks good to me.
I changed the 2 year to 1.69 though.
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 Dan

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #100 on: January 28, 2013, 12:57:06 PM »
Your math is fine, though your answers are off by a basis point (immaterial).
1 year = 1.5357 = 1.54%
2 year = 1.6905 = 1.69%
766.67/50,000=1.5333
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 yos9694

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #101 on: January 28, 2013, 01:00:31 PM »
Penalty = 152.17 (1.0184 ^ (30/360) -1)
Interest = $920 - $152.17 = $767.83

767.83 / 50000 = 1.5357%

Offline yuneeq

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #102 on: January 28, 2013, 01:02:09 PM »
766.67/50,000=1.5333
Penalty = 152.17 (1.0184 ^ (30/360) -1)
Interest = $920 - $152.17 = $767.83

767.83 / 50000 = 1.5357%

Which number is correct- 767.83 or 767.67?
Bring on the Wiki war!  :D
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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 #103 on: January 28, 2013, 01:04:09 PM »
Eh, my math was just down and dirty based on 2 months.
The easy way, 920/6=$153.33.
So I'll concede to your more advanced application.
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 yos9694

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #104 on: January 28, 2013, 01:05:08 PM »
Which number is correct- 767.83 or 767.67?
Bring on the Wiki war!  :D

No way. I was just trying to be helpful. And if Dan had posted before me I would have kept quiet to begin with (after all, off by a basis point once - eh, but twice - shame on George Bush).

Dan, I think quick and dirty does the trick just fine.