Ally Bank Offering a Limited Time 1% Cash Bonus

[Drake3287]

Just saw this advertised on a TV commercial and confirmed it on the Ally.com site.

If you open a new account (Savings, Money Market, CD, etc) and keep the money invested until February of next year Ally will pay you a 1% cash bonus plus what ever the going rate is for your new account.

In my case I have just over $100,000. in a Money Market account with Capital One 360 paying 1.85%. If I transfer that same money to Ally I'll get a $1,000. bonus in cash plus the current rate of 1.90%.

The offer is only available until Oct. 21 so act fast if your interested. Might be the easiest $1,000. I've ever made.

The Ally site is Ally.com/payback

 

[njhowie]

Been discussed extensively over the past week on the CD & MM thread:

Ally has a deal thru Oct 21 - new and existing customers, a 1% bonus on new deposits up to $1k, as long as the deposits remain with Ally through Jan 2019:

https://allypaybacktime.com/

Their no-penalty CD is still at 2.1%, but this extra makes it very attractive to me to move some cash for a few months.

 

[kaneohe]

...........................

The offer is only available until Oct. 21 so act fast if your interested. Might be the easiest $1,000. I've ever made.

The Ally site is Ally.com/payback

while time is short, this info may be alarmingly misleading.

My impression is that Oct. 21 is indeed the deadline for signing up, signing up merely means filling out your name and e-mail address on the signup page.
Once you get confirmed you have until 10/31 to set up account and request transfer of funds and until 11/5 to receive funds at Ally.

 

[jetpack]

Sounds good! i'm in. Wondering if it counts if I get a deposit in my checking account then move it to my savings account.

If it's in for 2.5 months, thats like 4.8% annualized.

 

[njhowie]

Sounds good! i'm in. Wondering if it counts if I get a deposit in my checking account then move it to my savings account.

If it's in for 2.5 months, thats like 4.8% annualized.

If it's an Ally checking account, then no - you cannot do that to qualify for the offer. It must be new money to Ally.

The annualized return is higher as you are also getting the 1.9% (annualized) savings account rate during that 2.5 months.

 

[jetpack]

Looks like a nice pair with 2.1% no penalty CD

 

[jetpack]

If it's an Ally checking account, then no - you cannot do that to qualify for the offer. It must be new money to Ally.

The annualized return is higher as you are also getting the 1.9% (annualized) savings account rate during that 2.5 months.

It's new money into my checking account. It only says that it needs to stay in your eligible Accounts(s)

 

[njhowie]

It's new money into my checking account. It only says that it needs to stay in your eligible Accounts(s)

I re-read the offer - you are correct. If it's Ally interest checking account that is also an eligible account for the offer.

 

[Drake3287]

Been discussed extensively over the past week on the CD & MM thread:

Obviously I don't check this site often enough! Just last night watching the TV ad was the first I had heard of it. Either way it's a great deal.

 

[steady saver]

I am, admittedly, new to buying CDs and this peaked my interest. I have some money sitting around that I won't need for a while.
I did a google search and found a rate with Synchrony that was a longer term (1 year for 2.5% or 15 mos. for 2.75%). I know this is comparing apples to oranges (their 3 month rate is just .75%) but it did get me to thinking about how best to buy a CD.

My DH who was set to retire end of Feb. is now considering a bit longer (6-12 months). Any way around it, I can easily free up cash for the next year. Can you help educate me as to why doing a short-term time frame CD (perhaps with more money) may or may not be a smarter move for me at this time?

I'm a bit embarrassed that I've never even bought a CD before, but we had talked about moving money into one (or more) so this is perhaps the time to actually do something.

Thank you!

 

[Drake3287]

Some people think CD's are the worst investment you can make while others can't open them fast enough! Just depends on your tolerance for investing and of course everyones financial situation is different.

For me, I have a generous pension that I easily live off plus our home is paid off. I also have a million in various investments but 1/3 of that is in cash in various CD's. For me, I like the feeling of knowing I have a few hundred thousand sitting there available and FDIC insured.

With current CD rates, I'm looking at earning around $8,000. per year off them, certainly a better figure then it has been over the last several years.

 

[steady saver]

Drake3287, do you systematically "ladder" them or just buy what looks good with a time frame that suits you at the moment?

 

[Drake3287]

Yes, I have the term dates staggered. Of my 3 large CD's, I have them coming due approximately 5 months apart for each other. At least for me, the prospect of needing a large amount of cash immediately is pretty unusual. If worse came to worse I could either pay the early withdrawal penalty or easily get a short term loan.

 

[steady saver]

Yes, I have the term dates staggered. Of my 3 large CD's, I have them coming due approximately 5 months apart for each other. At least for me, the prospect of needing a large amount of cash immediately is pretty unusual. If worse came to worse I could either pay the early withdrawal penalty or easily get a short term loan.

Thank you.

 

[Amethyst]

For us a $1000 bonus would be $675.00 after tax; still a good deal.

 

[copyright1997reloaded]

My DH who was set to retire end of Feb. is now considering a bit longer (6-12 months). Any way around it, I can easily free up cash for the next year. Can you help educate me as to why doing a short-term time frame CD (perhaps with more money) may or may not be a smarter move for me at this time?

Thank you!

You would do a shorter-term CD when you think the rates will continue to rise enough to offset the difference between a longer term rate and the shorter term rate. Or, if you believe that you might need the money before a longer-term CD matured.

You would do a longer-term CD if you though that rates were/were close to 'peaking' and thought that they would start moving down. So, in this case, do a longer term to 'lock in' the higher rate for a longer term.

 

[steady saver]

You would do a shorter-term CD when you think the rates will continue to rise enough to offset the difference between a longer term rate and the shorter term rate. Or, if you believe that you might need the money before a longer-term CD matured.

You would do a longer-term CD if you though that rates were/were close to 'peaking' and thought that they would start moving down. So, in this case, do a longer term to 'lock in' the higher rate for a longer term.

Thanks. The short-term one now could be a good idea if I am just trying to figure out what I want to do...ha, just wish I knew if the rates would go up or down...gotta go find that magic 8 ball

 

[Earl E Retyre]

Just wanted to thank the OP for posting this thread. It just made me $1,000 for doing almost nothing.

Here's what happened. I had a CD mature on 10/11 for $100k and deposited it into my Ally Savings account (until I decide how to invest it). Because I just read this thread, I called Ally and asked if I sign up today for the 1% Bonus will the funds be eligible that I added back on 10/11. He said they would be. Any funds added after 10/8 (and prior to 11/15) would be eligible even if I signed up for the bonus after I made the deposit. Unbelievable.

I was waiting for 5 year CD rates to climb a bit before investing this money. But for now, I get 1.9% in the savings account plus a 1% bonus - essentially giving me a 3 month CD at 2.9%.

The offer to sign up for the bonus expires tomorrow.

 

[njhowie]

But for now, I get 1.9% in the savings account plus a 1% bonus - essentially giving me a 3 month CD at 2.9%.

The rate for a full year will be 2.9%. If you're figuring the rate if you're only holding through the 3-month period, then it is 5.9% on an annualized basis - yes, equivalent to a 3 month CD at 5.9%.

Or another way to look at it - if you have a 3-month CD at 2.9%, you earn 0.725% in the 3 months. Here, in the 3 months you will earn 1% + 0.475%.

 

[Lakewood90712]

These type of offers are surfacing in the brick and mortar banks too. Just got an offer from HSBC $ 800 bonus for new combined ck / sav. balance of 100k for 90 days. savings rate 2.01 apy. Same bank last offer in July was 300 for a 50 k deposit.

The war on savers is not over, but has a temporary cease fire. At this rate, we almost keep up with inflation less taxes on the interest.

 

[clifp]

These type of offers are surfacing in the brick and mortar banks too. Just got an offer from HSBC $ 800 bonus for new combined ck / sav. balance of 100k for 90 days. savings rate 2.01 apy. Same bank last offer in July was 300 for a 50 k deposit.

The war on savers is not over, but has a temporary cease fire. At this rate, we almost keep up with inflation less taxes on the interest.

Great line.

The last time I bought a CD was back in 2013 when Penfed had 5 years for 3% and the last time I was actually happy to buy one was back in 2011 when PenFed offered 10 year 5% CDs. I figured they were good deals but I had no idea what good deal it would be. Just a few years later I borrowed money for a 7 year car loan from PenFed at 1.75% while the were still paying me 5% on the CD.

I'm expecting that PenFed will probably have some good deals in the next few months.

 

[powerplay]

Great line.
I'm expecting that PenFed will probably have some good deals in the next few months.

Here's hoping you are right about this. I have several of those 3% PenFed CDs maturing in the next few months. Could we possibly see a 4% offering?

 

[Bamaman]

Too bad it's for new $. I just had a somewhat large no penalty CD mature yesterday with Ally--drawing 2.1% APR.

 

[RunningBum]

If a better deal comes along before the end of the year you can always bail out and give up the bonus. This seems like a good deal though. I missed it in the other thread, so I'm glad to see it here. Hope I can get the money together and account access to transfer from VG in time.

 

[Carol1862]

Just saw this advertised on a TV commercial and confirmed it on the Ally.com site.

If you open a new account (Savings, Money Market, CD, etc) and keep the money invested until February of next year Ally will pay you a 1% cash bonus plus what ever the going rate is for your new account.

In my case I have just over $100,000. in a Money Market account with Capital One 360 paying 1.85%. If I transfer that same money to Ally I'll get a $1,000. bonus in cash plus the current rate of 1.90%.

The offer is only available until Oct. 21 so act fast if your interested. Might be the easiest $1,000. I've ever made.

The Ally site is Ally.com/payback

Thank you so much. I’ve been putting off opening an account with Ally and you just gave me the push I needed. Many thanks for bringing this to our attention