Ally Select 14 Month CD

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Ren
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Ally Select 14 Month CD

Post by Ren »

It looks like Ally has a 14 month CD with a whopping 0.60% APY. It only shows up with you go to open a new account. I didn't see a post about it, but feel free to delete this if there already is. *edited, it looks like it's not a NP, but a High Yield CD*
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anon_investor
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Re: Ally Select 14 Month CD

Post by anon_investor »

Ren wrote: Tue Oct 12, 2021 1:46 pm It looks like Ally has a 14 month CD with a whopping 0.60% APY. It only shows up with you go to open a new account. I didn't see a post about it, but feel free to delete this if there already is. *edited, it looks like it's not a NP, but a High Yield CD*
Ally has those limited time weird # of months CD offers occationally. But I would rather do an 11 month no penalty CD for 0.5% for the flexibility.
Ramjet
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Re: Ally Select 14 Month CD

Post by Ramjet »

I think my Ally savings account rate is 0.5
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MikeG62
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Re: Ally Select 14 Month CD

Post by MikeG62 »

anon_investor wrote: Tue Oct 12, 2021 2:11 pm
Ren wrote: Tue Oct 12, 2021 1:46 pm It looks like Ally has a 14 month CD with a whopping 0.60% APY. It only shows up with you go to open a new account. I didn't see a post about it, but feel free to delete this if there already is. *edited, it looks like it's not a NP, but a High Yield CD*
Ally has those limited time weird # of months CD offers occationally. But I would rather do an 11 month no penalty CD for 0.5% for the flexibility.
Marcus is paying 0.60% on its OLS account for those with an AARP membership (which can be easily and cheaply purchased). Also, they are running a referral bonus of 50bps for 3 months (bumping rate to 1.10% for those with AARP membership) - applicable to both the referrer and the referee.
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chipperd
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Re: Ally Select 14 Month CD

Post by chipperd »

Ren wrote: Tue Oct 12, 2021 1:46 pm It looks like Ally has a 14 month CD with a whopping 0.60% APY. It only shows up with you go to open a new account. I didn't see a post about it, but feel free to delete this if there already is. *edited, it looks like it's not a NP, but a High Yield CD*
Don't waste your time. Sep CPI-U just came out.
Starting Nov 1, I Bond annualized rate of about 7.12%. Currently at 3.54%
Purchase last day in Nov and it's a gov't backed 11 month and 1 day CD @5.34% (after 3 month interest penalty and assuming rate doesn't change in May 2022).
"A portfolio is like a bar of soap, the more it's handled, the less there is." Dr. William Bernstein
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indexfundfan
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Re: Ally Select 14 Month CD

Post by indexfundfan »

True, but the amount you can purchase each year is limited.
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anon_investor
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Re: Ally Select 14 Month CD

Post by anon_investor »

indexfundfan wrote: Wed Oct 13, 2021 8:36 am True, but the amount you can purchase each year is limited.
Yes exactly, I maxed out my I Bonds back in May when they announced the 3.54% variable rate. I wish the limit was higher than $10k/person. I will buy more I Bonds in early 2022 to lock in that juicy 7%+ variable rate for 6 months, though.

With interest rates so low for my "cash", I am only renewing my no penalty CDs at Ally to get the 0.05% renewal bonus - to get 0.55% (adding to them while I am add it), otherwise I am just leaving money in my savings account. Locking in a CD even at 1% seems silly, at least no penalty CDs have more liquidity.
chipperd
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Re: Ally Select 14 Month CD

Post by chipperd »

anon_investor wrote: Wed Oct 13, 2021 9:37 am
indexfundfan wrote: Wed Oct 13, 2021 8:36 am True, but the amount you can purchase each year is limited.
Yes exactly, I maxed out my I Bonds back in May when they announced the 3.54% variable rate. I wish the limit was higher than $10k/person. I will buy more I Bonds in early 2022 to lock in that juicy 7%+ variable rate for 6 months, though.

With interest rates so low for my "cash", I am only renewing my no penalty CDs at Ally to get the 0.05% renewal bonus - to get 0.55% (adding to them while I am add it), otherwise I am just leaving money in my savings account. Locking in a CD even at 1% seems silly, at least no penalty CDs have more liquidity.
I was under the impression that bond holders get the rate set in Nov and May for the period they hold the bond during those six month periods. In other words, if an I Bond is purchased in Jan 2022, won't the holder get the Nov 2021 rate for the 4 months Jan 2022 through April 2022 and then the new rate starting May 2022?
Thought I knew something, but perhaps not?
"A portfolio is like a bar of soap, the more it's handled, the less there is." Dr. William Bernstein
patrick
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Re: Ally Select 14 Month CD

Post by patrick »

There are checking and savings accounts paying higher interest than the CD. Of course they don't guarantee continuing their current rates, but I think it very unlikely that all of these will drop below 0.60% in the next 14 months:

1% with no limit - T-Mobile Money
2% on the first $20,000 - Elements Financial Credit Union, requires 15 withdrawal transactions (bill pays qualify) per month
2.25% on the first $25,000 - Presidential Bank, requires $500 in direct deposits and 7 withdrawal transactions (bill pays qualify) per month, minimum balance $500
3% on 10% of direct deposits - One Finance, max $1,000 per month into the 3% account, the rest only gets 1% but can be spent or withdrawn
3.3% on the first $20,000 - Evansville Teachers Federal Credit Union, requires 15 debit card purchases per month and a monthly electronic deposit
4.07% on the first $7,500 - Genisys Credit Union, requires 10 debit card purchase per month of at least $5 each
5% on the first $500 and 3% on another $3,000 - Service Credit Union
6.17% on the first $1,000 - Digital Credit Union
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SquawkIdent
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Re: Ally Select 14 Month CD

Post by SquawkIdent »

MikeG62 wrote: Wed Oct 13, 2021 8:27 am
anon_investor wrote: Tue Oct 12, 2021 2:11 pm
Ren wrote: Tue Oct 12, 2021 1:46 pm It looks like Ally has a 14 month CD with a whopping 0.60% APY. It only shows up with you go to open a new account. I didn't see a post about it, but feel free to delete this if there already is. *edited, it looks like it's not a NP, but a High Yield CD*
Ally has those limited time weird # of months CD offers occationally. But I would rather do an 11 month no penalty CD for 0.5% for the flexibility.
Marcus is paying 0.60% on its OLS account for those with an AARP membership (which can be easily and cheaply purchased). Also, they are running a referral bonus of 50bps for 3 months (bumping rate to 1.10% for those with AARP membership) - applicable to both the referrer and the referee.
+1
LK2012
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Re: Ally Select 14 Month CD

Post by LK2012 »

chipperd wrote: Wed Oct 13, 2021 12:49 pm
anon_investor wrote: Wed Oct 13, 2021 9:37 am
indexfundfan wrote: Wed Oct 13, 2021 8:36 am True, but the amount you can purchase each year is limited.
Yes exactly, I maxed out my I Bonds back in May when they announced the 3.54% variable rate. I wish the limit was higher than $10k/person. I will buy more I Bonds in early 2022 to lock in that juicy 7%+ variable rate for 6 months, though.

With interest rates so low for my "cash", I am only renewing my no penalty CDs at Ally to get the 0.05% renewal bonus - to get 0.55% (adding to them while I am add it), otherwise I am just leaving money in my savings account. Locking in a CD even at 1% seems silly, at least no penalty CDs have more liquidity.
I was under the impression that bond holders get the rate set in Nov and May for the period they hold the bond during those six month periods. In other words, if an I Bond is purchased in Jan 2022, won't the holder get the Nov 2021 rate for the 4 months Jan 2022 through April 2022 and then the new rate starting May 2022?
Thought I knew something, but perhaps not?
You get the rate for 6 months from the month in which you purchase the bond. If you buy in January 2022, your bond will reset every 6 months, in January and July, and will then earn the interest rate in effect when it resets. So your January 2022 bond will get the 7% rate for 6 months.
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anon_investor
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Re: Ally Select 14 Month CD

Post by anon_investor »

chipperd wrote: Wed Oct 13, 2021 12:49 pm
anon_investor wrote: Wed Oct 13, 2021 9:37 am
indexfundfan wrote: Wed Oct 13, 2021 8:36 am True, but the amount you can purchase each year is limited.
Yes exactly, I maxed out my I Bonds back in May when they announced the 3.54% variable rate. I wish the limit was higher than $10k/person. I will buy more I Bonds in early 2022 to lock in that juicy 7%+ variable rate for 6 months, though.

With interest rates so low for my "cash", I am only renewing my no penalty CDs at Ally to get the 0.05% renewal bonus - to get 0.55% (adding to them while I am add it), otherwise I am just leaving money in my savings account. Locking in a CD even at 1% seems silly, at least no penalty CDs have more liquidity.
I was under the impression that bond holders get the rate set in Nov and May for the period they hold the bond during those six month periods. In other words, if an I Bond is purchased in Jan 2022, won't the holder get the Nov 2021 rate for the 4 months Jan 2022 through April 2022 and then the new rate starting May 2022?
Thought I knew something, but perhaps not?
That is not how it works. So for this juicy 7.12% variable rate, you get it for 6 months for I Bonds purchased between November 1, 2021 to April 30, 2022. The variable rate changes every November 1 and May 1 for new purchases. For existing purchases, you will get the new rate after your current 6 months of the prior rate is completed.

https://www.treasurydirect.gov/indiv/re ... dterms.htm
chipperd
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Re: Ally Select 14 Month CD

Post by chipperd »

anon_investor wrote: Wed Oct 13, 2021 12:57 pm
chipperd wrote: Wed Oct 13, 2021 12:49 pm
anon_investor wrote: Wed Oct 13, 2021 9:37 am
indexfundfan wrote: Wed Oct 13, 2021 8:36 am True, but the amount you can purchase each year is limited.
Yes exactly, I maxed out my I Bonds back in May when they announced the 3.54% variable rate. I wish the limit was higher than $10k/person. I will buy more I Bonds in early 2022 to lock in that juicy 7%+ variable rate for 6 months, though.

With interest rates so low for my "cash", I am only renewing my no penalty CDs at Ally to get the 0.05% renewal bonus - to get 0.55% (adding to them while I am add it), otherwise I am just leaving money in my savings account. Locking in a CD even at 1% seems silly, at least no penalty CDs have more liquidity.
I was under the impression that bond holders get the rate set in Nov and May for the period they hold the bond during those six month periods. In other words, if an I Bond is purchased in Jan 2022, won't the holder get the Nov 2021 rate for the 4 months Jan 2022 through April 2022 and then the new rate starting May 2022?
Thought I knew something, but perhaps not?
That is not how it works. So for this juicy 7.12% variable rate, you get it for 6 months for I Bonds purchased between November 1, 2021 to April 30, 2022. The variable rate changes every November 1 and May 1 for new purchases. For existing purchases, you will get the new rate after your current 6 months of the prior rate is completed.

https://www.treasurydirect.gov/indiv/re ... dterms.htm
Wow, great! Thanks for setting me straight. The chart on the link you referenced is very handy.
"A portfolio is like a bar of soap, the more it's handled, the less there is." Dr. William Bernstein
Onlineid3089
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Re: Ally Select 14 Month CD

Post by Onlineid3089 »

Ramjet wrote: Tue Oct 12, 2021 2:25 pm I think my Ally savings account rate is 0.5
Unless it has changed in the last couple days, it is .5% which matches their no penalty CDs. I've still been making use of the no penalty CDs by moving cash from savings to a new CD anytime I hit a threshold in cash. If rates go up I can always cash out the CDs, but at least I have an 11 month floor for those dollars if rates fall. Not that a fall would mean that much when you're only talking about a .5% rate to begin with :?
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