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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 53226 times)

Offline sruly

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Offline Lev

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #141 on: April 30, 2013, 10:29:54 AM »
"Dear Lev,
You recently received a CD maturity notice that provided important information about at least one of your CDs. If you renew your CD at maturity into any CD term, we'll automatically add a loyalty reward of 0.25% to your new rate."

Offline YG

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Best savings account?
« Reply #142 on: May 19, 2013, 01:05:42 PM »
Is there a thread around here about the best savings accounts around these days?
Looking to put away 5K in a way that will minimize devaluation due to inflation, be minimal maintenance, and allow it to be accessible as I don't know when I'll need it. 

Offline mow

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Re: Best savings account?
« Reply #143 on: May 19, 2013, 01:07:32 PM »
Ally bank

Offline YG

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #144 on: May 19, 2013, 01:24:48 PM »
Thanks to whoever moved this here. And thanks @ mow for the response.

Offline Jay the PRESIDENT

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #145 on: May 21, 2013, 03:57:56 PM »
Whats the current best interest rate on a CD?

Offline Dan

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #146 on: July 16, 2013, 03:21:33 PM »
Ally .25 still alive and well.
Just did another 3 month/5 year 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 Tax

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #147 on: July 16, 2013, 04:17:27 PM »
Is there a thread around here about the best savings accounts around these days?
Looking to put away 5K in a way that will minimize devaluation due to inflation, be minimal maintenance, and allow it to be accessible as I don't know when I'll need it. 
Look at I bonds.
http://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm

Offline ari2955

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #148 on: July 17, 2013, 01:23:18 AM »
Ally .25 still alive and well.
Just did another 3 month/5 year CD.
Can I add more $ at the end of the 3 months and get the .25 on the entire amount?

Offline Lotofsimcha

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #149 on: July 17, 2013, 02:17:50 AM »
Can I add more $ at the end of the 3 months and get the .25 on the entire amount?

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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

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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 don’t 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

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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???
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Offline Tax

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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

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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

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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 »
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Offline steeeveknowsbest

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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

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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.
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Offline steeeveknowsbest

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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

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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.

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