Ally Bank 11 month [No-Penalty CD]

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
User avatar
VictoriaF
Posts: 18394
Joined: Tue Feb 27, 2007 7:27 am
Location: Black Swan Lake

Re: Ally Bank 11 month [No-Penalty CD]

Post by VictoriaF » Sat Dec 23, 2017 6:47 pm

I sent an SM to Ally asking if my 9 December 1.60% CDs qualified for an automatic conversion to 1.75% on 19 December. As of 23 December, Ally still has not responded to my SM. Today, I accessed my account, closed all 1.60% CDs and opened the same number of 1.75% CDs. I spent less time doing it myself than I would have spent waiting for Ally to answer my call.

If you do what I did, remember:
1. Specify beneficiaries foryour new CDs.
2. Change maturity instructions. (Ally's default is to roll into a new CD, but I prefer the money to go to my Ally checking account.)

Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

User avatar
Kevin M
Posts: 9891
Joined: Mon Jun 29, 2009 3:24 pm
Contact:

Re: Ally Bank 11 month [No-Penalty CD]

Post by Kevin M » Sat Dec 23, 2017 8:26 pm

Palatineman wrote:
Sat Dec 23, 2017 4:03 pm
I just did this an hour ago - took about 15 min to connect with an Ally rep on the phone and 10 min to close the old CD at 100k and get 4 new one's open at 25k each. They will fund within 2 business days taking funds from from my old CD to the new one's. My credit reports are all frozen. No issues with the process so far.
As mentioned, you can do it online; and it takes much less time than 25 minutes. Takes me less than five minutes to do the early withdrawal, transfer proceeds to checking, and open and fund the new CD(s). All the transfers are instantaneous, so I don't get the two business day thing. The only thing I know of that is not instant is opening a CD in the name of a trust, in which case they review the application before opening the CDs.

Kevin
Wiki ||.......|| Suggested format for Asking Portfolio Questions (edit original post)

User avatar
Kevin M
Posts: 9891
Joined: Mon Jun 29, 2009 3:24 pm
Contact:

Re: Ally Bank 11 month [No-Penalty CD]

Post by Kevin M » Sat Dec 23, 2017 8:37 pm

VictoriaF wrote:
Sat Dec 23, 2017 6:47 pm
I sent an SM to Ally asking if my 9 December 1.60% CDs qualified for an automatic conversion to 1.75% on 19 December. As of 23 December, Ally still has not responded to my SM. Today, I accessed my account, closed all 1.60% CDs and opened the same number of 1.75% CDs. I spent less time doing it myself than I would have spent waiting for Ally to answer my call.
Yeah, Ally counts the day you open the CD as day 1, so if you open on 12/9, day 10 is 12/18. If you were going to get the higher rate, you would have seen it by 12/19. One I opened on 12/13 shows 1.75% (today is 12/23), and one I opened on 12/14 still shows 1.60%.

Normally you could get this question answered quickly by online chat, but I've noticed fairly long phone wait times recently, and it seems that when this is the case, chat is not available. Checking now, I see wait time of 15 minutes, and online chat is not available. I edited the previous paragraph, and wait time now is 23 minutes. Holidays I guess.

Kevin
Wiki ||.......|| Suggested format for Asking Portfolio Questions (edit original post)

Palatineman
Posts: 133
Joined: Mon Jun 20, 2016 10:40 pm

Re: Ally Bank 11 month [No-Penalty CD]

Post by Palatineman » Sat Dec 23, 2017 9:22 pm

Kevin M wrote:
Sat Dec 23, 2017 8:26 pm
Palatineman wrote:
Sat Dec 23, 2017 4:03 pm
I just did this an hour ago - took about 15 min to connect with an Ally rep on the phone and 10 min to close the old CD at 100k and get 4 new one's open at 25k each. They will fund within 2 business days taking funds from from my old CD to the new one's. My credit reports are all frozen. No issues with the process so far.
As mentioned, you can do it online; and it takes much less time than 25 minutes. Takes me less than five minutes to do the early withdrawal, transfer proceeds to checking, and open and fund the new CD(s). All the transfers are instantaneous, so I don't get the two business day thing. The only thing I know of that is not instant is opening a CD in the name of a trust, in which case they review the application before opening the CDs.

Kevin
I don't have an Ally checking account to transfer funds to. That is why I had to call to see if the CSR could close the old CD and open up 4 new one's and fund it directly from the old CD.

I have a Discover Savings account, but that would have taken 4 additional business days to have the funds go back and forth between accounts.

User avatar
Kevin M
Posts: 9891
Joined: Mon Jun 29, 2009 3:24 pm
Contact:

Re: Ally Bank 11 month [No-Penalty CD]

Post by Kevin M » Sun Dec 24, 2017 5:49 pm

Palatineman wrote:
Sat Dec 23, 2017 9:22 pm
Kevin M wrote:
Sat Dec 23, 2017 8:26 pm
Palatineman wrote:
Sat Dec 23, 2017 4:03 pm
I just did this an hour ago - took about 15 min to connect with an Ally rep on the phone and 10 min to close the old CD at 100k and get 4 new one's open at 25k each. They will fund within 2 business days taking funds from from my old CD to the new one's. My credit reports are all frozen. No issues with the process so far.
As mentioned, you can do it online; and it takes much less time than 25 minutes. Takes me less than five minutes to do the early withdrawal, transfer proceeds to checking, and open and fund the new CD(s). All the transfers are instantaneous, so I don't get the two business day thing. The only thing I know of that is not instant is opening a CD in the name of a trust, in which case they review the application before opening the CDs.

Kevin
I don't have an Ally checking account to transfer funds to. That is why I had to call to see if the CSR could close the old CD and open up 4 new one's and fund it directly from the old CD.

I have a Discover Savings account, but that would have taken 4 additional business days to have the funds go back and forth between accounts.
Why don't you just open an Ally checking account, if for no other reason than to facilitate this type of thing? Takes a few minutes to do online, and there are no fees or minimum deposit. It will also facilitate getting money into and out of Ally using ACH transfers.

Kevin
Wiki ||.......|| Suggested format for Asking Portfolio Questions (edit original post)

User avatar
Blues
Posts: 1645
Joined: Wed Dec 10, 2008 11:58 am
Location: Blue Ridge Mtns

Re: Ally Bank 11 month No Penalty 1.75%

Post by Blues » Sun Dec 24, 2017 6:01 pm

Blues wrote:
Tue Dec 19, 2017 9:15 am
I closed out a 1.5% No-Penalty cd for the 1.6% rate within the last week...so with the "ten day, best rate guarantee" I should receive the highest rate offered during the period automatically.

Thanks for the heads up. I'll verify that it is in effect when the grace period ends. :beer
Checked this morning and the posted rate for the CD is now 1.75% (as promised in the 10 Day Best Rate Guarantee).
“Tactics without strategy is the noise before defeat.” - Sun Tzu | "Everybody has a plan until they get punched in the mouth." - Mike Tyson

Palatineman
Posts: 133
Joined: Mon Jun 20, 2016 10:40 pm

Re: Ally Bank 11 month [No-Penalty CD]

Post by Palatineman » Sun Dec 24, 2017 9:09 pm

Kevin M wrote:
Sun Dec 24, 2017 5:49 pm
Palatineman wrote:
Sat Dec 23, 2017 9:22 pm
Kevin M wrote:
Sat Dec 23, 2017 8:26 pm
Palatineman wrote:
Sat Dec 23, 2017 4:03 pm
I just did this an hour ago - took about 15 min to connect with an Ally rep on the phone and 10 min to close the old CD at 100k and get 4 new one's open at 25k each. They will fund within 2 business days taking funds from from my old CD to the new one's. My credit reports are all frozen. No issues with the process so far.
As mentioned, you can do it online; and it takes much less time than 25 minutes. Takes me less than five minutes to do the early withdrawal, transfer proceeds to checking, and open and fund the new CD(s). All the transfers are instantaneous, so I don't get the two business day thing. The only thing I know of that is not instant is opening a CD in the name of a trust, in which case they review the application before opening the CDs.

Kevin
I don't have an Ally checking account to transfer funds to. That is why I had to call to see if the CSR could close the old CD and open up 4 new one's and fund it directly from the old CD.

I have a Discover Savings account, but that would have taken 4 additional business days to have the funds go back and forth between accounts.
Why don't you just open an Ally checking account, if for no other reason than to facilitate this type of thing? Takes a few minutes to do online, and there are no fees or minimum deposit. It will also facilitate getting money into and out of Ally using ACH transfers.

Kevin
I will look into it - Thanks. I have 2 workhorse checking accounts with Brick and Mortar institutions that I need to deposit cash transactions into every month. Adding another checking account just seems overwhelming at this point.

MikeG62
Posts: 972
Joined: Tue Nov 15, 2016 3:20 pm
Location: New Jersey

Re: Ally Bank 11 month [No-Penalty CD]

Post by MikeG62 » Wed Dec 27, 2017 3:01 pm

FYI - saw the following note on Ally's web site with regard to the 11 month no-penalty CD today:

FOR A LIMITED TIME
12/19/17 THROUGH 1/2/18

So for those of us who want to wait until 2018 (to keep the interest out of 2017 if we selected the pay interest at maturity option), we can do so and still will get the 1.75% rate.
Real Knowledge Comes Only From Experience

User avatar
runner9
Posts: 2023
Joined: Tue Aug 02, 2011 8:49 pm
Location: Ohio

Re: Ally Bank 11 month [No-Penalty CD]

Post by runner9 » Wed Dec 27, 2017 3:22 pm

MikeG62 wrote:
Wed Dec 27, 2017 3:01 pm
FYI - saw the following note on Ally's web site with regard to the 11 month no-penalty CD today:

FOR A LIMITED TIME
12/19/17 THROUGH 1/2/18

So for those of us who want to wait until 2018 (to keep the interest out of 2017 if we selected the pay interest at maturity option), we can do so and still will get the 1.75% rate.
Isn't that limited time for 2.00% for 12 months? I don't see anything on the 11 month no penalty about a limited time.

geospatial
Posts: 61
Joined: Wed Jun 28, 2017 6:23 pm

Re: Ally Bank 11 month [No-Penalty CD]

Post by geospatial » Wed Dec 27, 2017 3:28 pm

runner9 wrote:
Wed Dec 27, 2017 3:22 pm
MikeG62 wrote:
Wed Dec 27, 2017 3:01 pm
FYI - saw the following note on Ally's web site with regard to the 11 month no-penalty CD today:

FOR A LIMITED TIME
12/19/17 THROUGH 1/2/18

So for those of us who want to wait until 2018 (to keep the interest out of 2017 if we selected the pay interest at maturity option), we can do so and still will get the 1.75% rate.
Isn't that limited time for 2.00% for 12 months? I don't see anything on the 11 month no penalty about a limited time.
Quick copy and paste job...
https://imgur.com/MWrvRHN

arsenal_fan
Posts: 36
Joined: Tue Nov 17, 2015 8:57 pm

Re: Ally Bank 11 month [No-Penalty CD]

Post by arsenal_fan » Thu Dec 28, 2017 12:48 am

jst wrote:
Sat Dec 23, 2017 4:51 pm
You don't need to call - you can do it all online. Just go to "make changes" in the menu.

Even for a savings account, I'm pretty sure it's a "soft" pull. I had to unfreeze my credit to get a savings account last week as a conduit. But then, with the credit re-frozen, I was able to cancel a CD and get a new one without a problem.
Sorry, but what do you actually select to convert a 1.5% no penalty CD to this? Do you select early withdrawal by online transfer, wait for the withdrawal to process, transfer back when you open a new 1 year CD?

Or do you rollover balance and change term to high-yield 12 month CD?

Agggm
Posts: 206
Joined: Mon Dec 25, 2017 6:18 pm

Re: Ally Bank 11 month [No-Penalty CD]

Post by Agggm » Thu Dec 28, 2017 3:41 am

My local bank pays 2.53% apy on my checking account.

MikeG62
Posts: 972
Joined: Tue Nov 15, 2016 3:20 pm
Location: New Jersey

Re: Ally Bank 11 month [No-Penalty CD]

Post by MikeG62 » Thu Dec 28, 2017 8:11 am

arsenal_fan wrote:
Thu Dec 28, 2017 12:48 am
jst wrote:
Sat Dec 23, 2017 4:51 pm
You don't need to call - you can do it all online. Just go to "make changes" in the menu.

Even for a savings account, I'm pretty sure it's a "soft" pull. I had to unfreeze my credit to get a savings account last week as a conduit. But then, with the credit re-frozen, I was able to cancel a CD and get a new one without a problem.
Sorry, but what do you actually select to convert a 1.5% no penalty CD to this? Do you select early withdrawal by online transfer, wait for the withdrawal to process, transfer back when you open a new 1 year CD?

Or do you rollover balance and change term to high-yield 12 month CD?
If you are rolling to a new 11 month no-penalty CD, simply click "rollover balance" and in the Transfer Funds Close CD drop down box and in the Change Terms drop down box, select "No Penalty 11 month CD".

If you want to roll into the new 2% 12 month CD, then select "12 Month CD" from the Change Terms drop down box.
Last edited by MikeG62 on Thu Dec 28, 2017 7:42 pm, edited 1 time in total.
Real Knowledge Comes Only From Experience

marcopolo
Posts: 956
Joined: Sat Dec 03, 2016 10:22 am

Re: Ally Bank 11 month [No-Penalty CD]

Post by marcopolo » Thu Dec 28, 2017 9:50 am

Anyone know if there is a way to directly convert these to the higher rate (prior to maturity) without round tripping them through another account?

I do not have a checking account at Ally, just a Savings.
Having problems opening new checking due to credit freeze.

I have 17 of these CDs at 1.5%. Round tripping them through Savings acct. will cost a few hundred dollars due to transaction limits.
Once in a while you get shown the light, in the strangest of places if you look at it right.

User avatar
Blues
Posts: 1645
Joined: Wed Dec 10, 2008 11:58 am
Location: Blue Ridge Mtns

Re: Ally Bank 11 month [No-Penalty CD]

Post by Blues » Thu Dec 28, 2017 10:10 am

I do not believe so, Marco. My understanding is that you have to liquidate the old account, have the funds disbursed to another Ally or off-site account, and then move the designated funds back into the newly opened account.

It's unfortunate that round trips within Ally itself count against the number of transactions allotted without penalty.
“Tactics without strategy is the noise before defeat.” - Sun Tzu | "Everybody has a plan until they get punched in the mouth." - Mike Tyson

User avatar
runner9
Posts: 2023
Joined: Tue Aug 02, 2011 8:49 pm
Location: Ohio

Re: Ally Bank 11 month [No-Penalty CD]

Post by runner9 » Thu Dec 28, 2017 7:22 pm

I opened an 11 Month no penalty at 1.75%, transferred from our Ally Savings account, online in about 2 minutes. Meanwhile, the wait to talk to someone in the upper right moved from 31 minutes to 27.

User avatar
HueyLD
Posts: 5859
Joined: Mon Jan 14, 2008 10:30 am

Re: Ally Bank 11 month [No-Penalty CD]

Post by HueyLD » Thu Dec 28, 2017 7:33 pm

marcopolo wrote:
Thu Dec 28, 2017 9:50 am
Anyone know if there is a way to directly convert these to the higher rate (prior to maturity) without round tripping them through another account?

I do not have a checking account at Ally, just a Savings.
To break a CD before maturity, you have to close it out, transfer the proceed to online savings and then fund the new CD with money from online savings or elsewhere.

Each transfer out of Ally online savings will count toward the six withdrawal limits per statement cycle.

MikeG62
Posts: 972
Joined: Tue Nov 15, 2016 3:20 pm
Location: New Jersey

Re: Ally Bank 11 month [No-Penalty CD]

Post by MikeG62 » Thu Dec 28, 2017 7:48 pm

marcopolo wrote:
Thu Dec 28, 2017 9:50 am
Anyone know if there is a way to directly convert these to the higher rate (prior to maturity) without round tripping them through another account?

I do not have a checking account at Ally, just a Savings.
Having problems opening new checking due to credit freeze.

I have 17 of these CDs at 1.5%. Round tripping them through Savings acct. will cost a few hundred dollars due to transaction limits.
MarcoPolo, try what I suggested in my post upthread. Although I have not actually done it, it appears the funds will simply move from the old to the new 11 month no-penalty (without stopping over in the savings account first). I intend to try to do that on January 1st with the nine CD’s I have.

Worst come to worse, you can always open a checking account (you do not need to order checks) and sweep the funds through that so as not to run afoul of the 6 Withdrawal limit in 30 days with the online savings account. As an aside, I opened an Ally checking account years ago when my first daughter went to college so she could access cash at an ATM transaction fee free. My youngest daughter now uses that same checking account for the same purpose.
Real Knowledge Comes Only From Experience

radiowave
Posts: 1737
Joined: Thu Apr 30, 2015 5:01 pm

Re: Ally Bank 11 month [No-Penalty CD]

Post by radiowave » Thu Dec 28, 2017 8:01 pm

marcopolo wrote:
Thu Dec 28, 2017 9:50 am
Anyone know if there is a way to directly convert these to the higher rate (prior to maturity) without round tripping them through another account?

I do not have a checking account at Ally, just a Savings.
Having problems opening new checking due to credit freeze.

I have 17 of these CDs at 1.5%. Round tripping them through Savings acct. will cost a few hundred dollars due to transaction limits.
Can you open up additional savings accounts at Ally without a credit check? If so, that could help solve the 6 withdrawals/mo dilemma.
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page

User avatar
Kevin M
Posts: 9891
Joined: Mon Jun 29, 2009 3:24 pm
Contact:

Re: Ally Bank 11 month [No-Penalty CD]

Post by Kevin M » Thu Dec 28, 2017 10:06 pm

I don't understand this thing about a credit check to open a checking account. I have opened a number of checking accounts at Ally without a credit check. Perhaps you're talking about a freeze on ChexSystems? I have no idea if that's an issue, because I didn't freeze ChexSystems.

I may not have opened a checking account since I froze my credit checks, but I know there's never been a hard pull on my credit to open a checking account at Ally. I'm tempted to open another one now just to see if it's an issue, but I already have too many.

Kevin
Wiki ||.......|| Suggested format for Asking Portfolio Questions (edit original post)

User avatar
kenyan
Posts: 2923
Joined: Thu Jan 13, 2011 12:16 am

Re: Ally Bank 11 month [No-Penalty CD]

Post by kenyan » Thu Dec 28, 2017 11:00 pm

Kevin M wrote:
Thu Dec 28, 2017 10:06 pm
I don't understand this thing about a credit check to open a checking account. I have opened a number of checking accounts at Ally without a credit check. Perhaps you're talking about a freeze on ChexSystems? I have no idea if that's an issue, because I didn't freeze ChexSystems.

I may not have opened a checking account since I froze my credit checks, but I know there's never been a hard pull on my credit to open a checking account at Ally. I'm tempted to open another one now just to see if it's an issue, but I already have too many.

Kevin
I just attempted to open a second savings account at Ally, and they wouldn't do it automatically due to my credit freeze. They called me a couple of days later to verify certain things, which I was unwilling to do over the phone with someone who called me. Unfortunately, I called back later and the CSR who answered (and his manager) had no idea what to do with me, so I'm back to square one - their only suggestion was to try to open another account and answer the personal questions over the phone next time...which again, I'm not going to do. *sigh*
Retirement investing is a marathon.

spoonfork
Posts: 32
Joined: Fri Oct 13, 2017 9:16 pm

Re: Ally Bank 11 month [No-Penalty CD]

Post by spoonfork » Fri Dec 29, 2017 12:43 am

When they called me to verify (because of my freeze) i just answered the questions and I was fine with it. The operator knew exactly when I requested to open the savings account and had pretty much all my information already. I get being cautious but these people already know everything about you.

marcopolo
Posts: 956
Joined: Sat Dec 03, 2016 10:22 am

Re: Ally Bank 11 month [No-Penalty CD]

Post by marcopolo » Fri Dec 29, 2017 9:08 am

MikeG62 wrote:
Thu Dec 28, 2017 7:48 pm
marcopolo wrote:
Thu Dec 28, 2017 9:50 am
Anyone know if there is a way to directly convert these to the higher rate (prior to maturity) without round tripping them through another account?

I do not have a checking account at Ally, just a Savings.
Having problems opening new checking due to credit freeze.

I have 17 of these CDs at 1.5%. Round tripping them through Savings acct. will cost a few hundred dollars due to transaction limits.
MarcoPolo, try what I suggested in my post upthread. Although I have not actually done it, it appears the funds will simply move from the old to the new 11 month no-penalty (without stopping over in the savings account first). I intend to try to do that on January 1st with the nine CD’s I have.

Worst come to worse, you can always open a checking account (you do not need to order checks) and sweep the funds through that so as not to run afoul of the 6 Withdrawal limit in 30 days with the online savings account. As an aside, I opened an Ally checking account years ago when my first daughter went to college so she could access cash at an ATM transaction fee free. My youngest daughter now uses that same checking account for the same purpose.
I could be wrong, but it appears that process you described above only changes the instructions for what to do with the rollover once the CD matures. I was not able to make that process rollover an active CD that is months from maturity.

I went through the process to open a checking account but instead of opening it right away as i would have expected, i got a message that someone would be contacting me in 3-5 business days (other have reported similar response, possibly due to frozen credit). That was back on 12/22, still have not heard anything.

I believe you can open the new CDs and take up to 10 days to fund them and still get the locked in rate. So, i will plan to open them Jan 2, and hope my checking account gets opened by Jan 12, otherwise i will convert them paying the $10 for the extra transactions...
Once in a while you get shown the light, in the strangest of places if you look at it right.

kaneohe
Posts: 4822
Joined: Mon Sep 22, 2008 12:38 pm

Re: Ally Bank 11 month [No-Penalty CD]

Post by kaneohe » Fri Dec 29, 2017 9:17 am

marcopolo wrote:
Thu Dec 28, 2017 9:50 am
Anyone know if there is a way to directly convert these to the higher rate (prior to maturity) without round tripping them through another account?

.....................
If you willing/able to tolerate the wait times on phone, I believe that the rep can make the transfer from old to new CD directly. I didn't notice any activity in savings account due to the switch.

User avatar
Blues
Posts: 1645
Joined: Wed Dec 10, 2008 11:58 am
Location: Blue Ridge Mtns

Re: Ally Bank 11 month [No-Penalty CD]

Post by Blues » Fri Dec 29, 2017 9:34 am

kaneohe wrote:
Fri Dec 29, 2017 9:17 am
If you willing/able to tolerate the wait times on phone, I believe that the rep can make the transfer from old to new CD directly. I didn't notice any activity in savings account due to the switch.
I don't think this is accurate. When I recently closed an existing No-Penalty CD on the phone and opened a new higher rate No-Penalty CD, the funds from the closed CD were sent to our money market at Ally first, then transferred from the money market account to fund the new CD. The rep never made mention of being able to just transfer directly without the intermediary of a checking, savings or money market account.

If someone finds out for certain whether there is an option to do a direct transfer, please let us all know. It might be useful in future.
“Tactics without strategy is the noise before defeat.” - Sun Tzu | "Everybody has a plan until they get punched in the mouth." - Mike Tyson

kaneohe
Posts: 4822
Joined: Mon Sep 22, 2008 12:38 pm

Re: Ally Bank 11 month [No-Penalty CD]

Post by kaneohe » Fri Dec 29, 2017 10:12 am

Blues wrote:
Fri Dec 29, 2017 9:34 am
kaneohe wrote:
Fri Dec 29, 2017 9:17 am
If you willing/able to tolerate the wait times on phone, I believe that the rep can make the transfer from old to new CD directly. I didn't notice any activity in savings account due to the switch.
I don't think this is accurate. When I recently closed an existing No-Penalty CD on the phone and opened a new higher rate No-Penalty CD, the funds from the closed CD were sent to our money market at Ally first, then transferred from the money market account to fund the new CD. The rep never made mention of being able to just transfer directly without the intermediary of a checking, savings or money market account.

If someone finds out for certain whether there is an option to do a direct transfer, please let us all know. It might be useful in future.
Was the value of the new CD the same as the value of the old one, including accrued interest? I had been not been taking interest on a current basis so current value was more than initial investment and rolled total value over to new CD. If you reinvested a different amount that the total value, that might require a deposit and then a withdrawal. Could that be it?

User avatar
munemaker
Posts: 3278
Joined: Sat Jan 18, 2014 6:14 pm

Re: Ally Bank 11 month [No-Penalty CD]

Post by munemaker » Fri Dec 29, 2017 10:24 am

Agggm wrote:
Thu Dec 28, 2017 3:41 am
My local bank pays 2.53% apy on my checking account.
I am betting there are a lot of strings attached that generate revenue for the bank.

User avatar
VictoriaF
Posts: 18394
Joined: Tue Feb 27, 2007 7:27 am
Location: Black Swan Lake

Re: Ally Bank 11 month [No-Penalty CD]

Post by VictoriaF » Fri Dec 29, 2017 10:35 am

runner9 wrote:
Thu Dec 28, 2017 7:22 pm
I opened an 11 Month no penalty at 1.75%, transferred from our Ally Savings account, online in about 2 minutes. Meanwhile, the wait to talk to someone in the upper right moved from 31 minutes to 27.
I also have closed/opened no-penalty CDs quickly. But I used Ally Checking as my intermediate stage to avoid generating excessive transactions in the savings account. This is particularly prudent if you are opening multiple CDs.

Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

User avatar
Blues
Posts: 1645
Joined: Wed Dec 10, 2008 11:58 am
Location: Blue Ridge Mtns

Re: Ally Bank 11 month [No-Penalty CD]

Post by Blues » Fri Dec 29, 2017 10:45 am

kaneohe wrote:
Fri Dec 29, 2017 10:12 am
Was the value of the new CD the same as the value of the old one, including accrued interest? I had been not been taking interest on a current basis so current value was more than initial investment and rolled total value over to new CD. If you reinvested a different amount that the total value, that might require a deposit and then a withdrawal. Could that be it?
I was wondering about that very factor after I posted. I did in fact open the new CD with the original starting balance of the closed CD but had the accrued interest deposited into the MM account. (I like starting our CDs with a nice round figure. I guess it's the OCD in me.)

So, that may be the difference.
“Tactics without strategy is the noise before defeat.” - Sun Tzu | "Everybody has a plan until they get punched in the mouth." - Mike Tyson

deskjockey
Posts: 149
Joined: Sat Dec 03, 2016 11:15 am

Re: Ally Bank 11 month [No-Penalty CD]

Post by deskjockey » Fri Dec 29, 2017 11:24 am

marcopolo wrote:
Fri Dec 29, 2017 9:08 am

I believe you can open the new CDs and take up to 10 days to fund them and still get the locked in rate. So, i will plan to open them Jan 2, and hope my checking account gets opened by Jan 12, otherwise i will convert them paying the $10 for the extra transactions...
I just checked Ally's rules on this matter because I have to move money from Vanguard to fund my CDs. You do indeed get 10 days to fund the CD at the promised rate. If you take longer to provide the funds, the CD will still be funded, but you will get whatever rate is effective on the date you fund the CD. That makes 11 January the last day your funds can arrive and still get the promo rate (2 January counts as the first day).

MikeG62
Posts: 972
Joined: Tue Nov 15, 2016 3:20 pm
Location: New Jersey

Re: Ally Bank 11 month [No-Penalty CD]

Post by MikeG62 » Fri Dec 29, 2017 11:27 am

marcopolo wrote:
Fri Dec 29, 2017 9:08 am
MikeG62 wrote:
Thu Dec 28, 2017 7:48 pm
marcopolo wrote:
Thu Dec 28, 2017 9:50 am
Anyone know if there is a way to directly convert these to the higher rate (prior to maturity) without round tripping them through another account?

I do not have a checking account at Ally, just a Savings.
Having problems opening new checking due to credit freeze.

I have 17 of these CDs at 1.5%. Round tripping them through Savings acct. will cost a few hundred dollars due to transaction limits.
MarcoPolo, try what I suggested in my post upthread. Although I have not actually done it, it appears the funds will simply move from the old to the new 11 month no-penalty (without stopping over in the savings account first). I intend to try to do that on January 1st with the nine CD’s I have.

Worst come to worse, you can always open a checking account (you do not need to order checks) and sweep the funds through that so as not to run afoul of the 6 Withdrawal limit in 30 days with the online savings account. As an aside, I opened an Ally checking account years ago when my first daughter went to college so she could access cash at an ATM transaction fee free. My youngest daughter now uses that same checking account for the same purpose.
I could be wrong, but it appears that process you described above only changes the instructions for what to do with the rollover once the CD matures. I was not able to make that process rollover an active CD that is months from maturity.

I went through the process to open a checking account but instead of opening it right away as i would have expected, i got a message that someone would be contacting me in 3-5 business days (other have reported similar response, possibly due to frozen credit). That was back on 12/22, still have not heard anything.

I believe you can open the new CDs and take up to 10 days to fund them and still get the locked in rate. So, i will plan to open them Jan 2, and hope my checking account gets opened by Jan 12, otherwise i will convert them paying the $10 for the extra transactions...
You may be right. I think you can do what you suggest - open the new CD's and fund in the 10 days that follow if you can't get the checking account open in time.

I'll just push all the money through my checking account.
Real Knowledge Comes Only From Experience

marcopolo
Posts: 956
Joined: Sat Dec 03, 2016 10:22 am

Re: Ally Bank 11 month [No-Penalty CD]

Post by marcopolo » Fri Dec 29, 2017 4:20 pm

This may help others in similar situation.

Was not able to open checking account due to credit freeze, got message that someone would call in 3-5 days.
They called today, turns out you have to lift freeze on BOTH ChexSystems AND TransUnion.
They said to call back after i did that.
So i lifted freeze on both, wait time is very long right now, so I went online and tried to open another Checking Account, went right through instantly!

I guess at some point i may end up with two checking accounts, but i should now be able to do the multiple transfers on Jan 1.
Once in a while you get shown the light, in the strangest of places if you look at it right.

Agggm
Posts: 206
Joined: Mon Dec 25, 2017 6:18 pm

Re: Ally Bank 11 month [No-Penalty CD]

Post by Agggm » Fri Dec 29, 2017 4:28 pm

munemaker wrote:
Fri Dec 29, 2017 10:24 am
Agggm wrote:
Thu Dec 28, 2017 3:41 am
My local bank pays 2.53% apy on my checking account.
I am betting there are a lot of strings attached that generate revenue for the bank.
Yeah. I have to have direct deposit each month and use the debit card which I do with Google Wallet.
Besides that they have unlimited atm fee reimbursements. No maintenance fees. I get about $55 interest monthly. Good deal. They raise their rates semi-regularly. The lowest they got was about 2.01% in the past several years.

nalor511
Posts: 219
Joined: Mon Jul 27, 2015 1:00 am

Re: Ally Bank 11 month [No-Penalty CD]

Post by nalor511 » Fri Dec 29, 2017 4:46 pm

Ally has a problem right now where an attempted soft pull is actually a hard pull on your report. They removed my hard pull manually, but it took 4 days and a supervisor. Keep a close eye if you open a savings or checking account with them.

dellfanboy
Posts: 46
Joined: Wed Sep 11, 2013 11:38 am

Re: Ally Bank 11 month [No-Penalty CD]

Post by dellfanboy » Fri Dec 29, 2017 5:22 pm

Weird. I tried to join and I see there is a withdraw penalty. Is anyone else getting this message for the 2% version?

User avatar
Kevin M
Posts: 9891
Joined: Mon Jun 29, 2009 3:24 pm
Contact:

Re: Ally Bank 11 month [No-Penalty CD]

Post by Kevin M » Fri Dec 29, 2017 5:28 pm

dellfanboy wrote:
Fri Dec 29, 2017 5:22 pm
Weird. I tried to join and I see there is a withdraw penalty. Is anyone else getting this message for the 2% version?
There is an early withdrawal penalty for all Ally CDs except the 11-month no-penalty CD, currently earning 1.75% for deposits of $25K or more.

Kevin
Wiki ||.......|| Suggested format for Asking Portfolio Questions (edit original post)

User avatar
Thrifty Femme
Posts: 318
Joined: Sun Apr 12, 2015 1:54 pm

Re: Ally Bank 11 month [No-Penalty CD]

Post by Thrifty Femme » Fri Dec 29, 2017 10:10 pm

marcopolo wrote:
Fri Dec 29, 2017 4:20 pm
This may help others in similar situation.

Was not able to open checking account due to credit freeze, got message that someone would call in 3-5 days.
They called today, turns out you have to lift freeze on BOTH ChexSystems AND TransUnion.
They said to call back after i did that.
So i lifted freeze on both, wait time is very long right now, so I went online and tried to open another Checking Account, went right through instantly!

I guess at some point i may end up with two checking accounts, but i should now be able to do the multiple transfers on Jan 1.
Did ChexSystems charge to lift the freeze?

marcopolo
Posts: 956
Joined: Sat Dec 03, 2016 10:22 am

Re: Ally Bank 11 month [No-Penalty CD]

Post by marcopolo » Sat Dec 30, 2017 7:28 am

Thrifty Femme wrote:
Fri Dec 29, 2017 10:10 pm
marcopolo wrote:
Fri Dec 29, 2017 4:20 pm
This may help others in similar situation.

Was not able to open checking account due to credit freeze, got message that someone would call in 3-5 days.
They called today, turns out you have to lift freeze on BOTH ChexSystems AND TransUnion.
They said to call back after i did that.
So i lifted freeze on both, wait time is very long right now, so I went online and tried to open another Checking Account, went right through instantly!

I guess at some point i may end up with two checking accounts, but i should now be able to do the multiple transfers on Jan 1.
Did ChexSystems charge to lift the freeze?
No. ChexSystems lift was free. TransUnion charged $10.
Once in a while you get shown the light, in the strangest of places if you look at it right.

neilpilot
Posts: 1739
Joined: Fri Dec 04, 2015 1:46 pm
Location: Memphis area

Re: Ally Bank 11 month [No-Penalty CD]

Post by neilpilot » Sat Dec 30, 2017 8:48 am

marcopolo wrote:
Sat Dec 30, 2017 7:28 am

No. ChexSystems lift was free. TransUnion charged $10.
I have no idea why the difference, but I just ordered a temporary lift of my credit freeze at Equifax and TransUnion. They were both easily done, at no charge. The TransUnion lift was a specific lift on 2 accounts (mine & my spouse), and we were given codes that the bank used to unlock the freeze.

Why were you charged $10, and we were not?

marcopolo
Posts: 956
Joined: Sat Dec 03, 2016 10:22 am

Re: Ally Bank 11 month [No-Penalty CD]

Post by marcopolo » Sat Dec 30, 2017 8:58 am

neilpilot wrote:
Sat Dec 30, 2017 8:48 am
marcopolo wrote:
Sat Dec 30, 2017 7:28 am

No. ChexSystems lift was free. TransUnion charged $10.
I have no idea why the difference, but I just ordered a temporary lift of my credit freeze at Equifax and TransUnion. They were both easily done, at no charge. The TransUnion lift was a specific lift on 2 accounts (mine & my spouse), and we were given codes that the bank used to unlock the freeze.

Why were you charged $10, and we were not?
I believe the amount they are allowed to charge is governed by state specific laws. Some states require it to be free.
Once in a while you get shown the light, in the strangest of places if you look at it right.

User avatar
HueyLD
Posts: 5859
Joined: Mon Jan 14, 2008 10:30 am

Re: Ally Bank 11 month [No-Penalty CD]

Post by HueyLD » Sat Dec 30, 2017 8:59 am

The charge is state dependent.

In my state, I have to pay for each freeze and unfreeze.

neilpilot
Posts: 1739
Joined: Fri Dec 04, 2015 1:46 pm
Location: Memphis area

Re: Ally Bank 11 month [No-Penalty CD]

Post by neilpilot » Sat Dec 30, 2017 9:02 am

marcopolo wrote:
Sat Dec 30, 2017 8:58 am
neilpilot wrote:
Sat Dec 30, 2017 8:48 am
marcopolo wrote:
Sat Dec 30, 2017 7:28 am

No. ChexSystems lift was free. TransUnion charged $10.
I have no idea why the difference, but I just ordered a temporary lift of my credit freeze at Equifax and TransUnion. They were both easily done, at no charge. The TransUnion lift was a specific lift on 2 accounts (mine & my spouse), and we were given codes that the bank used to unlock the freeze.

Why were you charged $10, and we were not?
I believe the amount they are allowed to charge is governed by state specific laws. Some states require it to be free.
You are correct. The cost also maybe different if you are a victim of ID theft. https://www.transunion.com/credit-freez ... n-by-state

thugline
Posts: 7
Joined: Mon May 26, 2014 11:19 pm

Re: Ally Bank 1.25% 11 month with no EWP

Post by thugline » Sun Dec 31, 2017 3:16 pm

Kevin M wrote:
Tue Dec 19, 2017 9:01 pm
tenkuky wrote:
Tue Dec 19, 2017 7:19 pm
:oops:
I just closed and rolled over my 1.5% no EWP CDs to 1.6% 5 days ago.
Don't they have a 10-day guarantee so they automatically apply the new 1.75%?
Or do I need to close and roll again, but I have to wait the 6 day period, right?
You will get the 1.75% rate due to the 10-day rate guarantee. You'll see the new rate online after 11 days. Since threads have been merged, it's confusing, but if you look through earlier posts, you'll see this explained.

Kevin
Does the 10-day rate guarantee only apply when the rate rises? What if it drops in 10 days?

Example, the 2.00% 1 year CD rate appears to be promotional and will end on Jan 2nd, which leads me to believe the rate will drop.

If I take more than 10 calendar days to fund the CD, will it drop to the current and likely lower rate or do I get to keep the rate at the time I signed up for the CD?

I am a new customer and am using ACH from a new external account to fund the CD. I will have to wait for the trial deposits to occur and then furthermore wait for the ACH pull, so it could easily elapse 10 calendar days for all this to happen. Allowing 10 business days to fund would've made a lot more sense.

User avatar
HueyLD
Posts: 5859
Joined: Mon Jan 14, 2008 10:30 am

Re: Ally Bank 11 month [No-Penalty CD]

Post by HueyLD » Sun Dec 31, 2017 3:50 pm

The 10-day rate guarantee starts when the account is funded, not when it has a zero balance.

You obviously want the guarantee for the upside. In other words, if the rate goes up within 10 days of your funding of a CD, you can ask for a retroactive bump to the higher rate. If the rate goes down, you are golden.

thugline
Posts: 7
Joined: Mon May 26, 2014 11:19 pm

Re: Ally Bank 11 month [No-Penalty CD]

Post by thugline » Sun Dec 31, 2017 4:14 pm

HueyLD wrote:
Sun Dec 31, 2017 3:50 pm
The 10-day rate guarantee starts when the account is funded, not when it has a zero balance.

You obviously want the guarantee for the upside. In other words, if the rate goes up within 10 days of your funding of a CD, you can ask for a retroactive bump to the higher rate. If the rate goes down, you are golden.
The 10-day clock starts ticking prior to funding of the account based on these statements from Ally:

“It's important to remember that transfers from a non-Ally Bank account typically take 3 to 4 business days. Please allow sufficient mail delivery time to ensure your deposit is received before the Ten Day Best Rate Guarantee time expires.

If your deposit isn't received in time to get the Ten Day Best Rate Guarantee, then you'll get the rate we offer for your term and balance tier on the day your funds are deposited.”

The last statement is what confuses me. I’ll get the rate offered on the day funds are deposited? Meaning I could get a lower rate?

User avatar
Blues
Posts: 1645
Joined: Wed Dec 10, 2008 11:58 am
Location: Blue Ridge Mtns

Re: Ally Bank 11 month [No-Penalty CD]

Post by Blues » Sun Dec 31, 2017 4:19 pm

thugline wrote:
Sun Dec 31, 2017 4:14 pm
“It's important to remember that transfers from a non-Ally Bank account typically take 3 to 4 business days. Please allow sufficient mail delivery time to ensure your deposit is received before the Ten Day Best Rate Guarantee time expires.

If your deposit isn't received in time to get the Ten Day Best Rate Guarantee, then you'll get the rate we offer for your term and balance tier on the day your funds are deposited.”

The last statement is what confuses me. I’ll get the rate offered on the day funds are deposited? Meaning I could get a lower rate?
Correct. If you don't get the funds to them before the 10 day period elapses you'll get the rate in effect at the time received.
(Of course, you can also close a no-penalty CD shortly thereafter if that rate is unsatisfactory to you.)
“Tactics without strategy is the noise before defeat.” - Sun Tzu | "Everybody has a plan until they get punched in the mouth." - Mike Tyson

User avatar
HueyLD
Posts: 5859
Joined: Mon Jan 14, 2008 10:30 am

Re: Ally Bank 11 month [No-Penalty CD]

Post by HueyLD » Sun Dec 31, 2017 4:21 pm

I think they could be more clear on their disclosure.

Yes, you need to fund your CD within 10 days to get the rate they offered on the date the CD was opened with a zero balance. If the funding occurs after 10 days, you will get the going rate, and it may be higher or lower.

Once a CD is funded, you will received an open date and a maturity date. And if the rate goes up within 10 days of funding, you can get the higher rate retroactively.

thugline
Posts: 7
Joined: Mon May 26, 2014 11:19 pm

Re: Ally Bank 11 month [No-Penalty CD]

Post by thugline » Sun Dec 31, 2017 4:42 pm

HueyLD wrote:
Sun Dec 31, 2017 4:21 pm
I think they could be more clear on their disclosure.

Yes, you need to fund your CD within 10 days to get the rate they offered on the date the CD was opened with a zero balance. If the funding occurs after 10 days, you will get the going rate, and it may be higher or lower.
That is what I was afraid of. 10 calendar days just isn’t enough to move funds via ACH from an external account especially if weekends and holidays are counted.

User avatar
HueyLD
Posts: 5859
Joined: Mon Jan 14, 2008 10:30 am

Re: Ally Bank 11 month [No-Penalty CD]

Post by HueyLD » Sun Dec 31, 2017 4:49 pm

thugline wrote:
Sun Dec 31, 2017 4:42 pm
HueyLD wrote:
Sun Dec 31, 2017 4:21 pm
I think they could be more clear on their disclosure.

Yes, you need to fund your CD within 10 days to get the rate they offered on the date the CD was opened with a zero balance. If the funding occurs after 10 days, you will get the going rate, and it may be higher or lower.
That is what I was afraid of. 10 calendar days just isn’t enough to move funds via ACH from an external account especially if weekends and holidays are counted.
I am surprised that your account didn't receive instant approval of the external account funding.

Did you do it online? I opened my first Ally savings account over the phone and they verified my external bank account while I was on the phone. I had to provide them with certain info related to my external bank account.

Not withstanding the above, I think you will be o.k. because the rates seem to be on the upward trend.

AntsOnTheMarch
Posts: 610
Joined: Mon May 29, 2017 5:47 pm

Re: Ally Bank 11 month [No-Penalty CD]

Post by AntsOnTheMarch » Mon Jan 01, 2018 7:05 am

On the plus side, I was able to close out 2 of these CDs and open them at the new rate even though it’s a holiday.

On the minus side, the ally website got confused several times, wouldn’t let me log in, asked for 2FA. I did get the second CD completed but then ally logged me out again and locked me out of my account, so I’ll have to call in tomorrow. :annoyed

Edit: I used another browser, was asked for 2FA again and was able to log in. Does not inspire confidence.

Post Reply