End of Year CD Deals

[Earl E Retyre]

Ally Bank 11 mos no penalty CD is now 1.75%. I opened a 1.5% no penalty CD several months ago. Does anyone know if I can call Ally and have them essentially bump up my rate to 1.75% (e.g., cancel my 1.5% CD and immediately open a 1.75% CD)?

 

[Sunset]

Ally Bank 11 mos no penalty CD is now 1.75%. I opened a 1.5% no penalty CD several months ago. Does anyone know if I can call Ally and have them essentially bump up my rate to 1.75% (e.g., cancel my 1.5% CD and immediately open a 1.75% CD)?

You can do it yourself online immediately.
Looking at your account.
Click on your CD
in the description of the cd click on: Matures On:
On the left side there is a menu of 3 items, click on Early Withdrawal
Then select how you want to get your money (online transfer).
Select your Ally bank account to put the money in and then do it.
Close the popup window (top right is the close X)

You will see your account with the cd money deposited in it, and the cd says closed.

Then you can buy a new one online at 1.75%

 

[CaptTom]

Any reason to try to rush some cash into a CD before the new year?

I'm thinking interest rates are only going up, so no hurry, but you guys are making me wonder.

 

[Another Reader]

I'm expecting to ladder as interest rates go up. I put some cash in the Ally one year, 2 percent deal. It's significantly higher than the competition. As others catch up and surpass this rate and increases start for differing terms, I will put more cash to work.

 

[Cayman]

Not a rush per se, just listing best end of year rates for those who have a need. Thanks to this thread, I put some dough in Navy Fed's 15 mo. 2.25% deal to help keep those $ in pace with inflation.

 

[Earl E Retyre]

You can do it yourself online immediately.
Looking at your account.
Click on your CD
in the description of the cd click on: Matures On:
On the left side there is a menu of 3 items, click on Early Withdrawal
Then select how you want to get your money (online transfer).
Select your Ally bank account to put the money in and then do it.
Close the popup window (top right is the close X)

You will see your account with the cd money deposited in it, and the cd says closed.

Then you can buy a new one online at 1.75%

Thanks, Sunset. That was too easy. Took me 5 minutes and I was done. It really is amazing that they make it so easy to bump up your own rate with no penalty as rates rise.

 

[jazz4cash]

Any reason to try to rush some cash into a CD before the new year?

I'm thinking interest rates are only going up, so no hurry, but you guys are making me wonder.

I wouldn't rush because there's just not enough money involved to make a huge difference. If you look at the rates on some of these specials, it's ~50 bps above the going rate for similar term. I think it will take quite awhile for rates to catch up to the specials, so why wait if the funds are available you could put half in now and see what happens.

 

[Sunset]

Any reason to try to rush some cash into a CD before the new year?

I'm thinking interest rates are only going up, so no hurry, but you guys are making me wonder.

Putting it into the Ally no penalty 11 month cd at 1.75% is a zero risk choice,

Since it can be cashed without penalty.

 

[pb4uski]

Essentially like a 1.75% savings account except deposits and withdrawals are all or nothing. Right?

 

[Sunset]

Essentially like a 1.75% savings account except deposits and withdrawals are all or nothing. Right?

Yes.
I tossed some money in there I don't expect to spend for 6 months or more. And just keep 10K or so out for immediate spending in the regular savings account.

Dividends keep rolling in to supplement the 10K number so it will last some time.

 

[Golden sunsets]

Putting it into the Ally no penalty 11 month cd at 1.75% is a zero risk choice,

Since it can be cashed without penalty.

Does the prior Ally CD that is being cashed in early compute interest daily so that the early withdrawal does not sacrifice interest earned sinc the prior month end?

 

[calmloki]

Does the prior Ally CD that is being cashed in early compute interest daily so that the early withdrawal does not sacrifice interest earned sinc the prior month end?

Yes.. Closed multiple Ally 11 mo. CDs (multiple because closing is all or nothing and we wanted to only close what we had to) - they all rolled into new accounts showing the initail funding amount + interest they had earned - up to the day. $100k single CD amount didn't show for a couple days, guess the amount required special eyes and blessing.

 

[Sunset]

Yes.. Closed multiple Ally 11 mo. CDs (multiple because closing is all or nothing and we wanted to only close what we had to) - they all rolled into new accounts showing the initail funding amount + interest they had earned - up to the day.......

+1

I was really impressed with ALLY, how easy it was to do, and they were so transparent with the transaction, and immediate (within seconds) deposit to my ALLY account.
Didn't even have to log out and back in.

 

[Golden sunsets]

+1

I was really impressed with ALLY, how easy it was to do, and they were so transparent with the transaction, and immediate (within seconds) deposit to my ALLY account.
Didn't even have to log out and back in.

+1. I've moved our cash stash around several times over the last several years, essentially chasing rates when there was a .02% or more basis point advantage, so I've experienced a lot of differing sometimes annoying platforms to set up and fund the account at the new institution. Ally has by far been the easiest, fastest and most straight forward platform to navigate. The 1.75% no penalty rate is also the most competitive, that I've seen. I've divided our stash in $25,000 increments and opened several CD's in the event I need "some" of the cash. Thanks to the poster who alerted us to the most recent uptick. The higher rate does expire on 1/2 according to the Ally website.


Sent from my iPad using Early Retirement Forum

 

[audreyh1]

I bumped up our current Ally 11 month no penalty CDs to 1.75%. That was easy.

I ran into the 6 withdrawal limit on my high yield account there though. I would like to buy two more.

I have to see about funding from another high yield savings account where I haven't hit the limit. Shouldn't be that hard I think.

No - did it. I was able to link to another high yield savings account that wasn't near the transfer limit.

 

[audreyh1]

+1. I've moved our cash stash around several times over the last several years, essentially chasing rates when there was a .02% or more basis point advantage, so I've experienced a lot of differing sometimes annoying platforms to set up and fund the account at the new institution. Ally has by far been the easiest, fastest and most straight forward platform to navigate. The 1.75% no penalty rate is also the most competitive, that I've seen. I've divided our stash in $25,000 increments and opened several CD's in the event I need "some" of the cash. Thanks to the poster who alerted us to the most recent uptick. The higher rate does expire on 1/2 according to the Ally website.


Sent from my iPad using Early Retirement Forum

Agreed - I was pretty amazed that closing the CDs with early withdrawal, receiving funds in the savings account, and funding a new CD all happened instantaneously on a weekend!!

 

[Rosie]

Ally has by far been the easiest, fastest and most straight forward platform to navigate. The 1.75% no penalty rate is also the most competitive, that I've seen. I've divided our stash in $25,000 increments and opened several CD's in the event I need "some" of the cash. Thanks to the poster who alerted us to the most recent uptick.

Thanks to the posters on this thread (esp Audrey ) I opened an account with Ally last week and proceeded to fund a 1 yr CD and several 11 month CDs, using the same approach as G Sunsets.

I too am very impressed with Ally's platform. CIT Bank still has a better rate on their high yield savings and I might keep a bit of cash there, but I have now moved most of my cash allocation from CIT Bank to Ally.

The higher rate does expire on 1/2 according to the Ally website.

Thanks for the reminder! I just opened another 11 mo CD. Incredibly easy.

Although I kind of dread the avalanche of "Welcome to Ally" mailings I was told I should start receiving real soon.

 

[audreyh1]

It will be interesting to see what rate Ally drops to after Jan 2. And what other offers are available during January.

If the Fed raises rates a few more times next year as expected (at least 3 quarter point raises are expected), short-term CD rates should be quite a bit higher this time next year.

 

[Another Reader]

Just got an e-mail from Goldman Sachs/Marcus. Five year CD rate is now 2.5 percent. The on line savings account went to 1.4 percent

 

[brucethebroker]

Discover bank is now offering 1.30 on savings (no min./fees) and a $150 or $200 bonus for first time customers.
“To get your bonus: Apply for your first Discover Online Savings Account by 2/28/18. Enter Offer Code NW1217 when applying. Deposit a total of at least $15,000 into your account by 3/14/18 to earn a $150 bonus, or deposit a total of at least $25,000 into your account by 3/14/18 to earn a $200 bonus. Maximum bonus eligibility is $200 per account."
www.nerdwallet.com/blog/banking/best-bank-bonuses-promotions/?trk=nw_gn1_4.0#discover

Looks pretty good.

 

[audreyh1]

American Express Bank went up to 1.35% in their high yield savings account a couple of weeks ago.

 

[ShokWaveRider]

Still sitting on $2.5m in 3% till December 2018. I hope there will be more options in the 3% range then.

 

[Trooper]

The 1.75% no penalty rate is also the most competitive, that I've seen...The higher rate does expire on 1/2 according to the Ally website.

Ally also has a 2.00% CD, if you don't mind the penalty risk. That rate also expires 1/2/18.

 

[flintnational]

Synchony Bank has a 2% 12 month CD. Minimum $2K deposit. I did not see a max limit.

 

[audreyh1]

Synchony Bank has a 2% 12 month CD. Minimum $2K deposit. I did not see a max limit.

This is a 90 days simple interest penalty for early withdrawal and I’ve never noticed a max at Synchrony.