Ally No Penalty CD at 1.50% APY for $25k

[Aggie1999]

Saw this posted over at early retirement forum. Ally no penalty 11 month CD is back to 1.50% APY for $25k or more. Still crappy but about the best going in short term CD's.

https://www.ally.com/bank/no-penalty-cd/

[thedayisbrave]

Yep, I believe you have to have the funds in the account for a minimum of 6 days to get the accrued interest but that's nothing.  I'm using it as just another savings account for my 1-2 year goals (house downpayment).

[Chris @ Saturday Financial]

Thanks for the tip! We're saving for a house down payment so we currently have more cash on hand than usual.  We already have an Ally savings account, and I just opened a no penalty CD to get the additional 0.49% return.  It took five minutes and will probably net us an additional $50-$200, depending on when we pull the trigger on a house.

This is why I love the forums - I'm constantly finding new ways to optimize will very little extra effort.

[Holyoak]

How have you found the service to be with Ally?  I'm thinking of moving my home payment cash to them (savings account), but won't if there is even a hint of B.S. experienced by others.  Thank you.

[markpst]

I think I've been with Ally since March, 2013. I don't have any complaints. I have a checking and a savings account.

I like that they reimburse ATM usage (now its up to $10/month). Of course, the funny thing is, I still end up using the ATM at the local Walgreens which is part of the Allpoint network and doesn't charge ATM fees. I guess I figure it keeps costs lower for everyone that way.

[MountainTown]

Service with Ally is great. I switched from Capitalone 360 after my account got hacked and I couldn't reach someone for 1-2 weeks, while I was out over $70k--wondering if I would ever get it back. I like Ally's no penalty CD options. Seems like a win-win if you are on a shorter time horizon.

[Chase S.]

If you can become a member of Navy Federal (IE any military affiliation, even one grandparent who served counts), they have a 12 month 3% CD up to $3000 called Special EasyStart Certificate.  Their normal CD's are 1.25% for $1000+ at 12 months.

As a side note, Street Shares (streetshares.com/?referral_id=471859200 is my referral.  You do not need to click my referral) has a 5% APY bond backed by Veteran run Small Businesses.  There is a 1% fee for withdrawing early (less than 12 months), but even if you withdraw at 5 months, it is still more interest than a normal CD including that fee.

[MDM]

As a side note....

CrispySub, welcome to the forum.

Note that You may only share a referral code for each particular product or company once, on the entire forum. Promoting the same code over and over is considered spamming.

[chaskavitch]

I love Ally.  I've had an account with them for years, and they just keep getting better.  Recently they changed the lag from initiating a transaction and the money actually transferring from 3 business days to 1 day.  They also have mobile and online check deposit now. 

Granted, 1.15% return on a savings account doesn't compare to the recent run-up on the stock market, but for a plain old savings account it is great.

[runewell]

I love Ally.  I've had an account with them for years, and they just keep getting better.  Recently they changed the lag from initiating a transaction and the money actually transferring from 3 business days to 1 day.  They also have mobile and online check deposit now. 

Granted, 1.15% return on a savings account doesn't compare to the recent run-up on the stock market, but for a plain old savings account it is great.

1.15% doesn't compare with the dividends of some stocks, to say nothing about the potential for price appreciation.

[chaskavitch]

I love Ally.  I've had an account with them for years, and they just keep getting better.  Recently they changed the lag from initiating a transaction and the money actually transferring from 3 business days to 1 day.  They also have mobile and online check deposit now. 

Granted, 1.15% return on a savings account doesn't compare to the recent run-up on the stock market, but for a plain old savings account it is great.

1.15% doesn't compare with the dividends of some stocks, to say nothing about the potential for price appreciation.

Yeah.  we don't have a ton of money in there.  Mostly it is our emergency fund and fixed expenses that we pay yearly, like our HOA fees and car insurance.  Still, it's better than the 0.05% you get at Chase :(

[bob22]

Why go with a CD where you're locked in to get a 1.5% rate when Redneck Bank (online part of All American Bank) offers a 1.5% APY for its money market offering?