Ally Bank

Shane - #1, Tuesday, February 23, 2010 - 2:45 PM CT

Great bank, fast ACH.  Offered a .5% loyalty bump on their CD at maturity (after first offering a .25% bump).  Was also willing to modify the term (from 12 mos to 9 or 6 mos - although I chose to stay with 12 mos).  Highly recommended.

Anonymous - #2, Tuesday, March 9, 2010 - 2:30 PM CT

Make sure to get your information in writing. When I asked about what happens to 60-day early withdrawal penalty after CD is opened if Ally decides to increase it, CSR said it would not apply to "old" CDs, but only to CDs going forward. She even claimed it would be illegal for the bank to worsen original conditions for the customers. She could not email this to me in writing however, but suggested I ask the same question via the website in order to get something in writing. So I did, and instead of what she told me, got this in writing: "In response to your inquiry, if you opened a CD and Ally Bank changed the penalty from what is equivalent to 60 days worth of interest, to a different amount, this would apply to all CDs, new or existing.   I apologize for any incorrect information you have received. [...]"


Further calls to Ally had the same effect - another CSR said I could reject new terms and condition, but finally a manager confirmed that I could *not*, and would have to pay the penalty to withdraw the CD if I did not agree with new terms and conditions, if bank decided to change them. Another email also got me similar response to the one above. So, the only written thing I got is basically that the attractive early withdrawal penalty is not guaranteed at all.

 

Note that when rates rise, it will be financially beneficial to the bank to lock in more customers at lower rates by increasing the early withdrawal penalty.