Thursday, August 5, 2010 - 7:39 PM

Sign Of Future Rate Cuts? Ally Bank's 5-Year Brokered Cds At 2.35%

A reader emailed me this info that he noticed at his broker:

On 8-13, Ally Bank will be offering brokered CD's at 2.35% for 5 years, which makes you wonder if they will drop their direct 5 year CD's.

Usually Brokered CD's pay higher then directly from the bank.

You can see Fidelity's CD New Issue Offerings which include Ally's brokered CDs at this page.

The 5-year CD rate is still at 2.94% APY at ally.com as of 8/5/2010.

3

KenBDG5,147 posts since
Nov 29, 2009
Rep Points: 117,067

1. Thursday, August 5, 2010 - 10:20 PM

Ken -

I believe that this is now typical of brokered Cds.

Here is a link to the broker Investrade, offering Ally and GE Money Bank CDs.

Rates are similar, and have been the last few times I checked. The broker's cut now comes out of your rate, not a premium paid by the bank.

http://www.investrade.com/fixedincome/current_offerings.html

1

CTM30 posts since
May 6, 2010
Rep Points: 87

2. Thursday, August 5, 2010 - 10:20 PM

Ken -

I believe that this is now typical of brokered Cds.

Here is a link to the broker Investrade, offering Ally and GE Money Bank CDs.

Rates are similar, and have been the last few times I checked. The broker's cut now comes out of your rate, not a premium paid by the bank.

http://www.investrade.com/fixedincome/current_offerings.html

1

CTM30 posts since
May 6, 2010
Rep Points: 87

3. Monday, August 9, 2010 - 3:56 PM

Prescient. The 5-year CD rate is 2.85% / 2.89% APY at ally.com today.

2

CraigPD92 posts since
Jun 12, 2010
Rep Points: 323