Oddity With Ally Bank's CD And Savings Account Rates

Ally Bank's savings and money market rate is higher than the 3-month, 6-month and 9-month CD rates. Actually, it's not unique with Ally Bank. Many other internet banks have similar rates. Jim at Bargaineering has an interesting review of this oddity. I'm afraid it's a sign that savings account rates will probably continue to fall.

One note: If you're going to get a CD with a term under 1-year, there's no reason to choose a CD with a rate under Ally's no-penalty CD (currently 0.95% APY). You can make this no-penalty CD into any term that you want.