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Thoughts on No Penalty CD's (especially through Ally Bank)

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  • Thoughts on No Penalty CD's (especially through Ally Bank)

    I was curious if anybody has used a No-Penalty CD before, specifically the one at Ally Bank. I'm a normal Ally Bank customer (have been for years), but given the dropping interest rates, thought maybe utilizing their no-penalty CD could be an option for the money that I'd normally keep in their online savings account so that I could lock in the rate without it dropping further. Has anybody done this or am I making things overly complicated as the amount of money earned in interest will likely be minimal between their online savings account and the CD. I have about 250k in ally now as most of that money is for a house downpayment for the next 6-12 months.

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

  • #2
    the no penalty CDs are fine. Just read and understand the terms. If the rate is higher than savings go for it

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    • #3
      The Ally 11 month no penalty CD is paying 1.55%, so a decent deal in the current interest rate environment. I will probably roll over a big chunk of change into that particular CD next month.

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      • #4
        aren't the ally savings account rates at 1.50%? If you want the extra .05% sure, you'll get an extra $125. as WCI says, it's better than a kick in the teeth but that's small potatoes on your 250k down payment fund

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