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Change To Ally Bank Deposit Agreement Terms For CD Early Withdrawal

Wednesday, October 24, 2012 - 10:09 AMAlly Bank - Details
Has anyone noticed the change to Ally's Deposit Agreement, regarding CD Early Withdrawals, effective as of September 27, 2012? The important line in question is as follows:

The old language stated, "If you withdraw all of the funds you have deposited in a CD...". It now states "If we consent to the redemption of a CD or IRA CD prior to the maturity date...".

See the last page of the Deposit Agreement, the paragraph at the very bottom of the page.
11
primaryprimary4 posts since
Oct 24, 2012
Rep Points: 40
1. Wednesday, October 24, 2012 - 6:33 PM
primary:  More banks are changing the language for Early Withdrawals to the "If we consent" etc.  It does seem a bit scary but frankly I don't think a bank like Ally would refuse an early withdrawal unless they really had problems since word would get around fast.  When I have asked certain bank managers about this I am told it is just language they use but they do everything to convince me they would not stop me if I needed the funds.  However, I know that if push comes to shove their written word in the CD can be upheld so I try to spred by CDs around especially to banks or credit unions who don't have this wording in their CD info.  Thanks for sharing the new Ally info.
4
paoli2paoli21,148 posts since
Aug 10, 2011
Rep Points: 5,122
2. Wednesday, October 24, 2012 - 9:08 PM
This language regarding CD early withdrawls by customers contained in agreements/disclosures has been discussed in detail in previous blog posts by Ken:

http://www.depositaccounts.com/bl...ml#comment

http://www.depositaccounts.com/blog/issues-of-long-term-cds-and-early.html
6
ShorebreakShorebreak2,380 posts since
Apr 6, 2010
Rep Points: 12,706
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