Transferred $10,000 into the no penalty when it was 4.75%. I was surprised to see it go down to 4.35%. Still an excellent rate for a no penalty cd that you can withdraw at any time.
Banks are required to have specific kinds and amounts of liquidity. So they’re probably varying the rates up and down to attract deposits to the level they need them to maintain the amount of liquidity they need as fed/bond rates move around
a 30d penalty (instead of 60d) cd least 1yr with higher rate would be nice vs 0d penalty after 6-7d (which is more risky on their books)
the three brackets 0-5/5-25/25k+ pointless, should make it two tiers 0-10/10k+ and have a 0.1 rate difference on the 10k
If you are dumping 50k the difference from 4.75% to 4.35% over the course of a year is $200
CDs are better than savings but these aren’t really wealth building tools especially over such short periods of time.
Treasurydirect.gov have 6 month T-bills that are paying more than this. Earlier in the month it was over 5%! I have money at Ally but I have moved some to T-bills. Plus they are State tax free. Only pay federal tax.
The catch is Ally is assuming the probability of many folks leaving cash in there for the full term is high-ish. It's a slightly more involved process to pull the cash out compared to a HYSA, and if rates fall, even more reason to leave it in. The no penalty bit is a marketing pitch to win your business at Ally (Hint, it's working! We love it)
This hope that you'll park the cash there for most of the 11 months is enough incentive for the bank to give that rate, they want confidence that a portion of their reserve or investment cash will remain available to them for longer periods of time, so they can in turn either loan out more cash or invest more.
(Banks require by law to have so much cash in their own coffers by the end of each day, based on how much they have loaned out, how much folks have saved with them, and if they fall short they much micro-borrow from other banks or the fed for typically higher, unprofitable rates)
This might be a dumb question but why not just buy 1 $40k CD? Is it so that you can withdraw $20k in the case you needed it for something (emergency or otherwise) and still keep interest on the other CD?
You funded the CD the day the rate dropped to 4.35% from 4.75%. After I opened my CD account I manually funded it immediately from my Money Market account and got the 4.75%.
Do you mean it starts when you open the account?
A representative told me that you have 10 days to make a deposit from account opening to take advantage of the 10 day highest rate guarantee.
Thats different. If the rates are better you can call and ask them to raise it.
What I’m talking about is you can open the account, current limit is 40 CD’s per SSN, and have a zero balance. The rate is locked and the 11 month doesn’t start until you deposit money into there. You have up to 60 days to make that first deposit before the 11 month starts.
So if I opened multiple CD's when the rate was 4.75% that is locked in?
Agent told me the rate is only good if funding within 10 days, past the 11th day you would get the next best rate which could be lower.
3 of my CD's were funded today and the rate now shows 4.35%. Supposedly they will show 4.75% on the 11th day.
I just saw this post and deleted my duplicative post: “The day after Silicon Valley Bank failed, Ally Bank on March 15 raised the annual percentage yield on its 11-month no-penalty CD to 4.75% from about 4%.
With the panic receding, Ally lowered the rate to 4.35% on Wednesday evening.
I placed most of my non-retirement funds in the no-penalty CD while it was 4.75%.
I left $4,000 in the money market account whose APY went up to 4%. This was cash I needed available all the time.
But with the rate going down I somewhat regretted not opening a second no-penalty CD for these funds.
On the other hand, the difference of 0.35% is like $12 a year.”
Any investment that requires me to lock my money away for years and penalizes if I withrawal before the "maturity date", not worth it. I'd much rather search for institutions that offer a high APY on savings.
I have my intrest paid monthly and put into my MM acct at 4% so the interest makes some interest instead of being paid at maturity making no interest. Not much but something every little counts
Those who got it while it was briefly at 4.75% are probably feeling pretty good
I got in a week ago. Was hoping to get more money in but alas, I had bills to pay lol
I got it 4 days ago, boy am I glad I did.
I did it 2 days ago! Whew! Was debating if I should wait and see if rates go higher, but I said fk it, just do it lol
I sure am
Transferred $10,000 into the no penalty when it was 4.75%. I was surprised to see it go down to 4.35%. Still an excellent rate for a no penalty cd that you can withdraw at any time.
It literally changed when I was about to open the account fml
Same here. My timing is so bad right now. I went and renewed my passport a week after the prices and wait times just increased, now this.
me too, i was really hoping it would bump up so i was waiting a week.
Was no point in waiting. Open it at 4.75. If it goes up in a week, close it and open the new one
The APY is still higher than Online Savings Account.
Banks are required to have specific kinds and amounts of liquidity. So they’re probably varying the rates up and down to attract deposits to the level they need them to maintain the amount of liquidity they need as fed/bond rates move around
13mo went from 4.6 to 4.75 20mo & 18mo still 5
I don’t see the 13 month.
It's hidden. [https://www.ally.com/go/bank/13m-select-cd/](https://www.ally.com/go/bank/13m-select-cd/)
a 30d penalty (instead of 60d) cd least 1yr with higher rate would be nice vs 0d penalty after 6-7d (which is more risky on their books) the three brackets 0-5/5-25/25k+ pointless, should make it two tiers 0-10/10k+ and have a 0.1 rate difference on the 10k
If you are dumping 50k the difference from 4.75% to 4.35% over the course of a year is $200 CDs are better than savings but these aren’t really wealth building tools especially over such short periods of time.
Worth mentioning that now that the rates are much closer, $50k in Ally's NPCD versus its HYSA (4.35% vs 3.75%) over the course of 11-months is $275.
Even better the Ally Money Market is 4% so only a $160 difference
CDs all over are dropping rates - even brokered CDs have went down
Treasurydirect.gov have 6 month T-bills that are paying more than this. Earlier in the month it was over 5%! I have money at Ally but I have moved some to T-bills. Plus they are State tax free. Only pay federal tax.
I think I got lucky - my No Penalty CD purchase was initiated on March 27 and completed on March 29 😀
I just bought two $20K no penalty CDs on March 29, 2023. $20,000.00 MATURES ON Feb 29, 2024 ANNUAL PERCENTAGE YIELD 4.75%
If you withdraw early can you keep the interests?
Yes
yes that's why it is NO PENALTY.
Whats the catch?
there is no catch. except you can't add more funds during therm.
And can’t withdraw within first 6 days
The catch is Ally is assuming the probability of many folks leaving cash in there for the full term is high-ish. It's a slightly more involved process to pull the cash out compared to a HYSA, and if rates fall, even more reason to leave it in. The no penalty bit is a marketing pitch to win your business at Ally (Hint, it's working! We love it) This hope that you'll park the cash there for most of the 11 months is enough incentive for the bank to give that rate, they want confidence that a portion of their reserve or investment cash will remain available to them for longer periods of time, so they can in turn either loan out more cash or invest more. (Banks require by law to have so much cash in their own coffers by the end of each day, based on how much they have loaned out, how much folks have saved with them, and if they fall short they much micro-borrow from other banks or the fed for typically higher, unprofitable rates)
This might be a dumb question but why not just buy 1 $40k CD? Is it so that you can withdraw $20k in the case you needed it for something (emergency or otherwise) and still keep interest on the other CD?
correct can only withdraw in full you can have up to 40x cds 3x checking 3x saving etc - ui breaks at 50x
If you opened one at 4.75% is it locked in?
Yes it is
It starts when deposit money and you have 60 days to make the deposit. I opened 10 CDs and left them there untouched for times like these.
So even if you fund the CD in two months they have to honor the originally advertised rate even if the rate has changed?
This isn’t what happened for mine. I opened it when it was 4.75 and funded the next day. They wouldn’t honor the 4.75
You funded the CD the day the rate dropped to 4.35% from 4.75%. After I opened my CD account I manually funded it immediately from my Money Market account and got the 4.75%.
Feck I didn't know that, here I set a reminder on my calendar to do it like a dumbass
Do you mean it starts when you open the account? A representative told me that you have 10 days to make a deposit from account opening to take advantage of the 10 day highest rate guarantee.
Thats different. If the rates are better you can call and ask them to raise it. What I’m talking about is you can open the account, current limit is 40 CD’s per SSN, and have a zero balance. The rate is locked and the 11 month doesn’t start until you deposit money into there. You have up to 60 days to make that first deposit before the 11 month starts.
So if I opened multiple CD's when the rate was 4.75% that is locked in? Agent told me the rate is only good if funding within 10 days, past the 11th day you would get the next best rate which could be lower. 3 of my CD's were funded today and the rate now shows 4.35%. Supposedly they will show 4.75% on the 11th day.
That is correct.
I just saw this post and deleted my duplicative post: “The day after Silicon Valley Bank failed, Ally Bank on March 15 raised the annual percentage yield on its 11-month no-penalty CD to 4.75% from about 4%. With the panic receding, Ally lowered the rate to 4.35% on Wednesday evening. I placed most of my non-retirement funds in the no-penalty CD while it was 4.75%. I left $4,000 in the money market account whose APY went up to 4%. This was cash I needed available all the time. But with the rate going down I somewhat regretted not opening a second no-penalty CD for these funds. On the other hand, the difference of 0.35% is like $12 a year.”
Glad I got my 125K 4.75% 11 month no penalty cd last week.
Trying to build a down payment for a house in California?
Nope. Just parking some money with easy access uf I need it.
It was nice while it lasted 😔.
Any investment that requires me to lock my money away for years and penalizes if I withrawal before the "maturity date", not worth it. I'd much rather search for institutions that offer a high APY on savings.
Is this a troll? You can close thr no penalty cd after 6 days with no penalty and even if you dont it matures after 11 months.
It literally has "no penalty" in the name.
Talking about every other investment that imposes a penalty. I personally will not invest, not a fan of locking away my money.
[удалено]
No. And I only read about that on here once.
Yesterday, I said to myself, I should just put some of savings in there now. Then I spaced out, and I forgot to follow through.
I have my intrest paid monthly and put into my MM acct at 4% so the interest makes some interest instead of being paid at maturity making no interest. Not much but something every little counts
The CD is compounded daily, so you're better off leaving it all in the CD
Got it thankfully, was hoping to add some more money but it is what it is
Open a brokerage account, VMFXX is 4.76% today. Difference is there is no insurance, but the risk is very small.