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Ally 12 month CD--2.10-2.25
Old 05-31-2018, 10:01 PM   #1
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Ally 12 month CD--2.10-2.25

Anyone converting their 11 mon no penalty CDs to Ally's 12 mon CDs with rates up to 2.25 for 25k?
There is a 60 day penalty.
Our cds with Ally are only 1.75 so 50 bp bump if there is no need to access.
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Old 05-31-2018, 10:05 PM   #2
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Quote:
Originally Posted by nwsteve View Post
Anyone converting their 11 mon no penalty CDs to Ally's 12 mon CDs with rates up to 2.25 for 25k?
Yep. I still have a couple of 11 mo NP CDs, just in case.
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Old 05-31-2018, 10:24 PM   #3
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I just converted my 11 mo. to the 1 year for 2.25%.
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Old 05-31-2018, 10:26 PM   #4
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I just converted my 11 mo. to the 1 year for 2.25%.
I converted two $25,000 ones to the higher rate.
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Old 05-31-2018, 11:21 PM   #5
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I put $25k in the one year at the beginning of April, when it was 2%. Am now grumbling. But am waiting to see what happens after the mid June Fed meeting to see if there's more bumps up for the smaller amounts. Could get 2% for another $10k now, but am trying to be patient.
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Old 06-01-2018, 05:43 AM   #6
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Color me lazy. I’ve been kind of waiting as available rates rise and not really wanting to lock into anything that long, plus I’m considering moving some cash funds back to Fidelity and using T-bills.

The 12 month T-bill is 2.28% right now, and was 2.35% just a few days ago. The 6 month is just a bit lower.

For some reason Ally offers terrific no penalty rates in Dec. I really like the liquidity of the no-penalty rates.
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Old 06-01-2018, 09:39 AM   #7
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Disregard...I misread.
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Old 06-01-2018, 11:21 AM   #8
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The 12 month T-bill is 2.28% right now, and was 2.35% just a few days ago. The 6 month is just a bit lower.

For some reason Ally offers terrific no penalty rates in Dec. I really like the liquidity of the no-penalty rates.
My dilemma exactly. Buying the Treasuries when issued at no cost and at a competitive yield with no penalty sale (except $1/bond sale fee) is hard to pass up.
OTOH, one could do some of both I guess. :-)
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Old 06-01-2018, 02:17 PM   #9
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My dilemma exactly. Buying the Treasuries when issued at no cost and at a competitive yield with no penalty sale (except $1/bond sale fee) is hard to pass up.
OTOH, one could do some of both I guess. :-)
Yeah, doing both is always an option!
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Old 06-01-2018, 03:44 PM   #10
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Yeah, doing both is always an option!
I have a bias for liquidity as well, kinda dollars for "just in case" events--ranging from a stocks to stuff. In hindsight, I have learned that for myself, a lot of it is a masquerade for indecision and I have left too much in cash with a lot of opportunity cost. In the current case, not moving from the no penalty CD to the 12 month CD has an opportunity cost of 50 basis points or about $62/yr for a 25k CD.
Lots of assumptions about current spread holding for duration, better deals maybe in future, etc. But it is certain that I will be 50 bp better off until Nov. 18. and not have to do any account gyrations (move $ to Fido) etc to get it. Not earthshaking but when combined with other similar tradeoffs, the dollars add up over time for a liquidity situation that never arrives and if it did, could be met from a number of alternatives.
I guess if you are a conservative investor as I am, that is just the price of the strategy.
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Old 06-01-2018, 06:29 PM   #11
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Quote:
Originally Posted by nwsteve View Post
I have a bias for liquidity as well, kinda dollars for "just in case" events--ranging from a stocks to stuff. In hindsight, I have learned that for myself, a lot of it is a masquerade for indecision and I have left too much in cash with a lot of opportunity cost. In the current case, not moving from the no penalty CD to the 12 month CD has an opportunity cost of 50 basis points or about $62/yr for a 25k CD.
Lots of assumptions about current spread holding for duration, better deals maybe in future, etc. But it is certain that I will be 50 bp better off until Nov. 18. and not have to do any account gyrations (move $ to Fido) etc to get it. Not earthshaking but when combined with other similar tradeoffs, the dollars add up over time for a liquidity situation that never arrives and if it did, could be met from a number of alternatives.
I guess if you are a conservative investor as I am, that is just the price of the strategy.
I move slowly and donít worry too much about opportunity cost.
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Old 06-02-2018, 01:34 PM   #12
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PMMF is yielding 1.90% the last time that I checked. No penalty for early W/D. It has been increasing several bps weekly. I do not recall what the minimum is.
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Old 06-03-2018, 07:54 PM   #13
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