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Ally Bank Commercial With Economist: Why They Have A Raise Your Rate CD

Tuesday, October 16, 2012 - 5:59 PMAlly Bank - Details
One of Ally Bank's latest commercials supposedly features Thomas Sargent, a "Nobel laureate in economics and one of the most cited economists in the world." They ask him if he knows what CD rates will be in two years. Sargent replies with just one word, "no". It ends with the lady saying "If he can't, no one can. That's why Ally has a Raise Your Rate CD."

The economist's reply was mildly amusing, but one interesting fact is that Thomas Sargent has really won the Nobel prize in economics. I had assumed that guy was just an actor in the commercial. This Wikipedia entry on Thomas Sargent has more details. This has to be the easiest acting job in history. I wonder how much Ally paid him.

One slight mistake in the commercial is that they are advertising the 2-year Raise Your Rate CD when they ask Sargent about CD rates in 2 years. Why would a customer care about CD rates in 2 years if he has a 2-year Raise Your Rate CD? Sargent should have been asked about CD rates in 1 year. The Raise Your Rate feature can come in handy in that case if rates are higher 1 year from now (which is very unlikely I'm afraid). It would have made more sense if they were advertising the 4-year Raise Your Rate CD. In that case, higher rates in 2 years (also unlikely I'm afraid) would make the 4-year Raise Your Rate CD useful.

I have more details in my Raise Your Rate CD review.
Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
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