Ally Bank changing their CD early withdrawal penalty

[mystang52]

Just got email from Ally. New CD's, as of 12/7/13, will have larger early withdrawal penalties:
3-Year CD – loss of 90 days interest
4-Year CD – loss of 120 days interest
5-Year CD – loss of 150 days interest

They did reiterate that existing CD's are not affected.

 

[Ready]

That's too bad. The 60 day penalty was the main reason I always went with them. Time to shop around I guess.

 

[samclem]

That's too bad. The 60 day penalty was the main reason I always went with them. Time to shop around I guess.

Or, at least load up before mid-December.

Of course, what does 60 days additional interest penalty amount to at today's rates? Not much.

mystang52--thanks for the heads-up.

 

[gauss]

Thanks mystang52,

It is good to see that current CDs are grandfathered and that they gave advance notice before slamming the door close (ie implementing the new terms), giving us a chance to open a few more CDs if desired.

-gauss

 

[clifp]

Or, at least load up before mid-December.

Of course, what does 60 days additional interest penalty amount to at today's rates? Not much.

mystang52--thanks for the heads-up.

I haven't yet bitten the bullet and opened a Ally account.

On a $10,000 1.3% 4 year raise your rate CD it is $21 additional in penalties. I still have 6 months before the first of 3.5% Penfed CD mature maybe rates will skyrocket in the next 6 months.

 

[kaneohe]

Just got reminded via a thread on bogleheads.org that the PenFed IRA CDs for us geezers
over 59.5 have no EWP for partial withdrawals (I think that means leaving 1K in the CD which is the minimum to open a CD).