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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 33436 times)

Offline yuneeq

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Re: Ally CD Early Withdrawal Penalty
« Reply #165 on: October 26, 2013, 10:54:59 PM »
There's another thread that discusses it.

"How I'm getting triple the regular interest rate" or something like that
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Offline yuneeq

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Re: Ally CD Early Withdrawal Penalty
« Reply #166 on: October 26, 2013, 10:55:15 PM »
There's another thread that discusses it.

"How I'm getting triple the regular interest rate" or something like that
Live forever or die trying.

Offline AnonymousUser

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Re: Ally CD Early Withdrawal Penalty
« Reply #167 on: October 26, 2013, 11:15:05 PM »
There's another thread that discusses it.

"How I'm getting triple the regular interest rate" or something like that
http://forums.dansdeals.com/index.php?topic=13492.0

Offline ari2955

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #168 on: October 26, 2013, 11:31:41 PM »
Starting 12/07 the early withdrawal fee for a 5-year CD will go up to 150 days' interest (was 60 days).
Do you think if I cancel my 3 month CD before that date, they would give me to .25 bonus towards a new CD?

Offline Smokey Joe Robinson

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #169 on: October 26, 2013, 11:57:29 PM »
Starting 12/07 the early withdrawal fee for a 5-year CD will go up to 150 days' interest (was 60 days).
Do you think if I cancel my 3 month CD before that date, they would give me to .25 bonus towards a new CD?

Probably not although Im not sure....
Is that new policy for new cds, or also on existing cds?
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Offline AnonymousUser

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #170 on: October 26, 2013, 11:58:50 PM »
Probably not although Im not sure....
Is that new policy for new cds, or also on existing cds?
Only if new or renewed after 12/7.

Offline Smokey Joe Robinson

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #171 on: October 27, 2013, 12:04:51 AM »
Time to switch to Barlclays cds. Their policy is 90 days. Also just checked and 5 year cd is 2%. No need for the whole ally loyalty thing. Besides ally is only offering 1.60% (+.25% for loyalty)
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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 #172 on: October 27, 2013, 12:12:00 AM »
Time to switch to Barlclays cds. Their policy is 90 days. Also just checked and 5 year cd is 2%. No need for the whole ally loyalty thing. Besides ally is only offering 1.60% (+.25% for loyalty)
Only for CDs less than 24 months. For more than that, it's 180 days.

Offline Smokey Joe Robinson

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #173 on: October 27, 2013, 12:18:18 AM »
Only for CDs less than 24 months. For more than that, it's 180 days.

wow, dont remember them telling me that when I called. So the party is over unless you're willing to lock it away for a longer period of time.
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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 #174 on: October 27, 2013, 12:26:03 AM »
Starting 12/07 the early withdrawal fee for a 5-year CD will go up to 150 days' interest (was 60 days).
Do you think if I cancel my 3 month CD before that date, they would give me to .25 bonus towards a new CD?
Wow. That stinks.
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 Shmulyg

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #175 on: October 27, 2013, 12:49:51 AM »
wow, dont remember them telling me that when I called. So the party is over unless you're willing to lock it away for a longer period of time.
https://www.banking.barclaysus.com/faq.html#earlyTerminationPenalties

Offline EJB

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #176 on: October 27, 2013, 01:05:00 AM »
So I guess it's 1.85% from Ally in early December for me. 180 days is too much since I'll probably be buying a house in the next year or so.

Offline ayman

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #177 on: October 27, 2013, 02:00:14 AM »
It should be Besha'a Tova

Offline Galitzyaner

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #178 on: October 28, 2013, 01:12:13 AM »
Wow. That stinks.
+1 :( 
unless you're willing to lock it away for a longer period of time.
What are you referring to?

Offline ayman

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Re: How I'm getting almost triple the 1 year CD % rate for 1 year!
« Reply #179 on: October 28, 2013, 01:16:11 AM »
If you lock it for the full 5 yr and don't care to withdraw early?