Thursday, August 4, 2011 - 7:43 PM

Ally 5 Year CD Rate Decrease Tomorrow

Once again Ally has updated the CD rates on its automated telephone
(1-877-247-2559) system one day prior to their actual
implementation! This is also one day prior to Ally updating these
rates on their Website. This is also one day prior to Ally
updating the CSR private database of CD rates (so the CSRs don't
even know about the upcoming change)!

Specifically, tomorrow (Friday 8-5-11) Ally is decreasing its 5
year CD APY from 2.32% to 2.30%.

So of what use is this bit of trivia? Well, for rate increases,
not much since Ally's best-rate-within-the-next-10-days-of-opening-
a-CD policy already gives you the benefit of a higher (ie., the
next day's) rate. But, for rate decreases like this, it is worth
making the phone call to check the rate. So if you're debating
opening this Ally CD "today" or "tomorrow" be sure to open the CD
before midnite today to get the higher rate.

For a $10K 5 year CD the difference between opening it today or
tomorrow is a $200/year advantage!

cumulus142 posts since
Jan 16, 2010
Rep Points: 636

Edit | History

This post applies to all states.

Quick
Summary

1. Friday, August 5, 2011 - 3:27 AM

As rate drops go, this is a snoozer. When you consider the radical drop in the 10 year Treasury, folks should be snapping up these offerings.

Bozo135 posts since
Feb 14, 2011
Rep Points: 910

2. Friday, August 5, 2011 - 5:04 AM

Thanks cumulus for the heads up. Ally is now showing the new and lower 5-year APY of 2.30%.

Actually, it takes a $100K deposit for the difference to be in the 100's:

yearly difference = $100,000 x (0.02/100) = $20

5-year difference = 5 * $20 = $100

KenBDG5,178 posts since
Nov 29, 2009
Rep Points: 117,676

3. Friday, August 5, 2011 - 6:25 PM

> yearly difference = $100,000 x (0.02/100) = $20
>
For sure. Thank you Ken. My apologies for my sloppy
arithmetic here.

cumulus142 posts since
Jan 16, 2010
Rep Points: 636

4. Tuesday, August 9, 2011 - 7:02 PM

For what it's worth, Ally's phone system is giving the 5 year
CD rate/APY as 2.24%/2.27% --- i.e., one basis point below
the WEB and CSR given numbers.

We'll know tomorrow whether this is a case of declines on two
successive days (my vote). Suppose it could be Ally does the
arithmetic differently on these two (phone, WEB) applications
with a resultant one basis point error.

Right, who cares about .01%.

cumulus142 posts since
Jan 16, 2010
Rep Points: 636

5. Wednesday, August 10, 2011 - 6:49 AM

Thanks again cumulus for the heads up. It was correct again. The new 5-year CD rate/APY have been posted at Ally:

2.27% APY / 2.24% interest rate 5-year CD

Sorry to see the rate cut. These are small rate cuts, but they're adding up!

KenBDG5,178 posts since
Nov 29, 2009
Rep Points: 117,676

6. Wednesday, August 10, 2011 - 3:18 PM

Thanks again cumulus for the heads up. It was correct again. The new 5-year CD rate/APY have been posted at Ally:

2.27% APY / 2.24% interest rate 5-year CD

Sorry to see the rate cut. These are small rate cuts, but they're adding up!

You got that right, Ken. It's getting bad. It's really getting bad.

We're all dying here. This is "death by a thousand (rate) cuts"!!

shinoby9 posts since
Feb 7, 2011
Rep Points: 127

7. Thursday, August 11, 2011 - 6:31 PM

   Things got a bit ridiculous yesterday as Ally lowered
   its' 5 year CD APY twice in the same day!

   Guess we'll have to start reporting CD APY's on an
   hourly basis: eg., the 10am 5 year CD APY ...
                           the 2pm 5 year CD APY ...
   :)

cumulus142 posts since
Jan 16, 2010
Rep Points: 636

8. Tuesday, August 16, 2011 - 4:33 PM

Ally's 5 year CD death by Chinese Water Torture continued today as they drop the APY (from 2.26%) to 2.24%

cumulus142 posts since
Jan 16, 2010
Rep Points: 636