Ally Bank CD Rates
Ally Bank has been deemed one of the most popular online banking institutions in the country as well as the "Best One-Year CD" by Money Magazine.
This bank was born from the General Motors Acceptance Corporation (GMAC) and currently boasts over $44 billion in deposits, making it the 31st largest U.S. bank by deposit size. If you haven't heard the news about Ally's CD rates, you'll be pleased to know that they offer some very appealing perks.
Features and Benefits
Let's take a closer look. Since Ally is an online bank and has no physical bank locations, they can eliminate costs associated with brick and mortar banks and offer better interest rates. This product has a great interest rate of 1.05% for a 12 month CD and no minimum required balance to open the account (interest rates are subject to change so for the most accurate figure check with Ally Bank directly). Interest rates also differ based on the term you choose for your CD. The various terms offered include: 3 months, 6 months, 9 months, 12 months, 18 months, 3 years, and 5 years.
Like GE Capital's CD, Ally also offers FDIC insurance up to $250,000 and on-the-go access through their Go Mobile feature. You'll also get daily compounded interest for maximum earnings.
Unlike some other institutions, however, Ally automatically renews the CD at maturity which takes some of the pressure off of the account holder. What's more, Ally offers the ten day best rate guarantee. What's that you ask? Ally promises to give you the best rate they offer during the first ten days starting with your open date if you fund your CD within that time. This guarantee also applies at renewal.
There are no fees to open or obtain the APY on your CD with Ally Bank. They also offer a Raise Your Rate CD that has 2 or 4 year terms available. Customers who obtain the 2-year term can increase their interest rate once over the term or twice with a 4-year term if the banks rates increase.
Here are some of the cons associated with opening a CD with Ally Bank. Customers have reported technical issues when accessing the site via mobile and there are a string of complaints online about their CD accounts being closed without consent. Needless to say, Ally still receives a B+ rating by the BBB in spite of these accusations.
Deposits and withdrawals can take longer to process but for customers who choose to invest in a CD, this shouldn't be a problem unless you are in a hurry to receive your money. Once you make your initial deposit on your CD, you won't be able to add any initial funding to it until it reaches maturity. It's best that your deposit is on the larger side and your term is longer so you can earn more interest while your CD is being held by the bank.
If you wish to withdraw the money before the CD's maturity date, you may be subject to some fees. Partial withdrawal is not allowed and the penalty for withdrawing your funds early will depend on term of your CD. You can visit Ally's website for specific details regarding the various different penalty amounts per term.
Setting Up and Managing your Account
Opening an account is simple and you can do so through a variety of options. To open an account, you can either go online and submit an application at allybank.com, mail in the form, or contact them via phone. CD rates are subject to fluctuate throughout the industry so when you stumble across a deal packed with this many goodies it's a smart move to jump on it.
You can manage your account and view your CD information online or from your smart phone and take advantage of Ally's 24/7 customer service whenever you need it. When your CD matures it's time to withdraw your funds you can do so easily directly from the website or you can request to renew it for another term. You can also schedule a transfer on your maturity date to send funds to another Ally Bank account (if you decide to sign up for any of Ally's other banking options), a verified non-Ally Bank account or opt to receive a check in the mail.
Ally offers current customers and potentials customers a wide range of tools to utilize when it comes to determining what type of CD they'll invest in or managing their CD. You can start by using their online comparison tool to estimate how much you can earn on various different CD rates with the different terms offered.
Customers can take advantage of the GoMobile banking app to view and manage their account on the go from their smart phone. The app works on Apple smartphones and tablets along with Android phones and tablets, the Windows phone and Amazon Kindle. In addition to being able to manage your account online, Ally has a CD Ladder tool that helps you combine long-term earnings with more frequent access. This tool provides an introduction to CD ladder basics along with a step-by-step guide to walk you through a sample ladder from start to finish and estimate your own earnings.
Ally also has a helpful FAQ section and Help Center on their website dedicated to common questions about their CD rates and managing them online. You can refer to these sections before reaching out to customer service with your inquiries.
Verdict - Great
The 10-Day Best Rate Guarantee is by far the most appealing feature of this account which is why it stands out among other CD rates and offers. It's difficult to ignore the 0.94% annual yield and the fact that you could open an account with as little as $1. Ally Bank may not have the financial ratings of other big banks out there, but the risk of losing your money is extremely slim, given the fact that the company is economically solid and the FDIC insures your money up to a quarter-million dollars. Review the advantages and disadvantages once more before electing to go with one company over another.