Question About Ally No-Penalty CDs

[kaneohe]

When making transition from old to new CD is there a risk of not earning interest? Where do funds sit after old CD is closed and how soon after that is new one funded? Is there any wkend risk if done at the wrong time?

 

[audreyh1]

No. When you withdraw, they give you all the daily accumulated interest on the CD. When you look at the details on the CD you’ll see the daily rate and what you have earned in interest until today and they pay you all of the interest earned so far on closing.

If you have a savings or checking acccount at Ally, the funds can be transferred there immediately on closing, and you can open a new CD funded immediately online. You may be able to call in and have someone roll a CD into a new one if you don’t have a checking or savings account with Ally.

Note that for a savings account you are limited to six electronic withdrawals per statement cycle. No limits on checking.

 

[kaneohe]

Thanks, Audrey.........forgot about the 6 transaction rule so glad you reminded me. I was having someone at Ally help me.....waited till the day shift came in on the assumption that they might know more. There were some awkward pauses which felt like rep figuring out what to do and then the offer to put in saving acct w/o details about the new CDs so , perhaps incorrectly , concluded that rep wasn't sure how to do it so said I would do it later.........and thought I would consult the pros here first.

 

[MJ]

Note that for a savings account you are limited to six electronic withdrawals per statement cycle. No limits on checking.

I have overcome this by opening several savings accounts to increase the number of withdrawals per month.

 

[MJ]

After over a week of back and forth, I opened an account with the United States Senate Federal Credit Union. I was able in one day to deposit a check at a local shared credit union branch then go home and call them to open a certificate (CD) for 5 years @ 3.69 APY. Unfortunately, their 5 year rate just dropped down to 3.53%.

 

[Sunset]

When making transition from old to new CD is there a risk of not earning interest? Where do funds sit after old CD is closed and how soon after that is new one funded? Is there any wkend risk if done at the wrong time?

I have an ally savings account, and some CD's.

• I terminated my no fee CD early and had the money sent to my ally savings account.
• I refreshed the browser screen, and the money was there.
• (if that had not shown, I would have logged out, and closed browser, and logged back in).
• I bought a new no fee CD (higher rate) and funded it with the money in my ally savings account.

 

[brucethebroker]

After over a week of back and forth, I opened an account with the United States Senate Federal Credit Union. I was able in one day to deposit a check at a local shared credit union branch then go home and call them to open a certificate (CD) for 5 years @ 3.69 APY. Unfortunately, their 5 year rate just dropped down to 3.53%.

Thanks for the heads up on USSFCU being part of your shared co-op branch. Have been considering USSFCU so just googled our local co-op. Yep, USFCU is a member.

 

[kaneohe]

I have an ally savings account, and some CD's.

• I terminated my no fee CD early and had the money sent to my ally savings account.
• I refreshed the browser screen, and the money was there.
• (if that had not shown, I would have logged out, and closed browser, and logged back in).
• I bought a new no fee CD (higher rate) and funded it with the money in my ally savings account.

Thanks for info. I talked to Ally today and asked why the process was not like this when the rep helped me . The claim is that with a trust account, they have extra steps so it takes those extra days. With the HYS at 2.2% vs 2.3 for the NP CD, not much lost and maybe the delay will give some extra time for the
best 10 day rate to kick in.

 

[RunningBum]

I have an ally savings account, and some CD's.

• I terminated my no fee CD early and had the money sent to my ally savings account.
• I refreshed the browser screen, and the money was there.
• (if that had not shown, I would have logged out, and closed browser, and logged back in).
• I bought a new no fee CD (higher rate) and funded it with the money in my ally savings account.

Very helpful to show how easy it is to refresh the CD rate on the no-penalty CD, and I had the same experience in my regular (non-trust) account.

 

[audreyh1]

Even without refreshing the screen the funds will be there when you go to open a new CD account, they have a pop up to show you the available funds.

Several steps online at Ally to close a CD early and open a new CD account, but it’s straightforward and easy to follow.