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Ally "Loyalty Rewards" CD Renewal Info

Tuesday, April 24, 2012 - 7:19 PMAlly Bank - Details
Earlier today I searched Ally's website for info on their CD renewal
bonus.  Such info does not exist!  So I phoned to talk to a CSR and
here's what I got:

..Ally labels this their customer "loyalty rewards" program.

..You currently receive a +0.25% rate bump on a renewed CD.

..You are allowed to renew into a CD of a different term with the rate
  bump being applicable to the new CD.  For example, using current
  numbers, one could renew an existing matured 1 year CD with
  rate/APY = 1.03/1.04% into a new 5 year CD rate/APY = 1.68/1.69%
  receiving a rate = 1.68 + 0.25 = 1.93% (APY ~1.94%) on the new 5
  year CD.

..The +0.25% bump takes affect after Ally's 10 day best rate policy.
  So, in the preceding example if the rate on the new 5 year CD were
  to go up within 10 days after the renewal the +0.25% bump would be
  added on top of the new rate.

..All Ally CD's are eligible for "loyalty rewards".  Yes, you can
  renew a 3 month CD into a 5 year CD.  The Ally 11 month no-penalty
  CD is (obviously) eligible only after 11 months.

..The current "loyalty rewards" program ends June 30, 2012.  However
  Ally has now had this program a couple of years and FWIW they keep
  renewing it every 3 or 4 months.

Lastly I asked why Ally doesn't document this (useful) info on its
website and was told it was because it only (again obviously) applies
to existing customers.  I kind of thought that was a bit lame so I
put in a request to their 'Voice-of-the-customer' group that it be
documented with an existing 'For Existing Customers Only" header.
cumuluscumulus362 posts since
Jan 16, 2010
Rep Points: 1,700
1. Tuesday, April 24, 2012 - 7:55 PM
  If you have a qualifying CD about to mature the bonus is clearly noted when you logon. No sence posting something that you arent able to get and changes frequently. Sorry,  the request seems kind of lame.

Thanks for the reminder though.
RicochetRicochet134 posts since
Jan 19, 2010
Rep Points: 365
2. Tuesday, April 24, 2012 - 8:52 PM
 To me, these things are influential to my buying the CD.
Guess I kind of like to know the rules BEFORE I play the
cumuluscumulus362 posts since
Jan 16, 2010
Rep Points: 1,700
3. Thursday, April 26, 2012 - 2:37 PM
I'm OK with them not stating this in writing, because it would probably attract attention from other institutions that have critisized Ally for having too high rates, thus bringing the Govt down on them again.  Best that they keep this iffy and at their whim I think for both them and customers.
foggyfoggy10 posts since
Jun 20, 2010
Rep Points: 60
4. Wednesday, December 12, 2012 - 8:57 PM
Ally's Loyalty rewards program (a +0.25% rate bump) on
renewed CD's has once again been extended 3 months; the
new termination date is now March 31, 2013.

Ally cannot seem to make up its' mind about publicizing
this info as it has sometimes placed it on its' website
and sometimes not; currently and most often not.
cumuluscumulus362 posts since
Jan 16, 2010
Rep Points: 1,700
5. Monday, March 25, 2013 - 9:57 PM
Ally loyalty rewards program extended once again;
new termination date = June 30, 2013.
cumuluscumulus362 posts since
Jan 16, 2010
Rep Points: 1,700
6. Monday, June 24, 2013 - 8:45 PM
To the surprise of no one, Ally has again renewed its' loyalty
rewards program; new termination date = Sept 30, 2013.
cumuluscumulus362 posts since
Jan 16, 2010
Rep Points: 1,700
7. Saturday, August 24, 2013 - 8:29 PM
Ally has once again extended its' loyalty rewards program,
the new termination date = December 31, 2013.

Ally is also once again documenting loyalty rewards; after
logging on there is now a "Learn more" link at the bottom
of the accounts summary page highlighting this program.
cumuluscumulus362 posts since
Jan 16, 2010
Rep Points: 1,700
8. Sunday, August 25, 2013 - 8:52 AM
I have been an Ally customer, since before they were Ally.  However, I don't have a current CD.  If I were to open a new CD now, would I be eligable for this bonus?  What is your understanding of that situation?

MikeMike327 posts since
Feb 22, 2010
Rep Points: 876
9. Sunday, August 25, 2013 - 6:29 PM
Mike, my understanding is the "Loyalty Reward" is an incentive to renew a CD that is already at Ally (ie:  an incentive to leave the money at Ally), not - disappointingly -  "thank you for being a loyal Ally customer and opening a CD".  

However, if you call the bank they will clarify, and perhaps they might discuss other available incentives for which you might be eligible.  I know some institutions offer great rates on "new money" - ie:  money you bring into the institution that is not already on deposit.  

Please keep us posted on what you learn about the "loyalty rewards" program.
pearlbrownpearlbrown1,482 posts since
Nov 2, 2010
Rep Points: 6,440
10. Sunday, August 25, 2013 - 7:15 PM
Re #8. Sunday, August 25, 2013 - 8:52 AM

> ...would I be eligable for this bonus?
Mike, Short answer = Yes; example: If you were to open say a $1.00 Ally 3
month CD today (Ally has no minimum), it would mature Nov 25, 2013.  At
that time you could renew it into say a 5 year CD, adding funds to make it
a $10,000 CD.  Assuming no rate changes in the Ally 5 year CD between now
and your renewal, the rate on your renewed CD would be the 5 year rate of
1.49%, plus the loyalty reward of 0.25% = an 1.74% rate = an 1.75% APY.

Assuming you trust Ally to honor its' early withdrawal penalty (EWP), you
could then terminate the 5 year CD after 1 year in Nov 2014 having earned
an effective APY = 1.46%.  Bottom line = 1 year CD APY=1.46%.  (Use DA's
handy EWP calculator to see other effective APYs)

Danger1: Ally terminates loyalty rewards prior to your renewal; your cost
is the lost interest (zero) on your $1.00 three month CD.

Danger2: (In honor of DA user lou et. al.) Ally exercises its' option to
refuse your early withdrawal request; your cost is that you must hold the
5 year CD to maturity---only you can decide whether this risk/reward is
appropriate for you.
cumuluscumulus362 posts since
Jan 16, 2010
Rep Points: 1,700
11. Sunday, August 25, 2013 - 7:32 PM
By the way, the previous is not just "example", it is part of my own
repeated short term CD strategy (as I'm sure is the case with many

Here's Ally's online loyalty rewards blurb:

     Renew your CD and get a .25% increase on your new rate

     As an Ally Bank customer, you will automatically get a .25% increase
     on the best rate we offer for your term, when you renew your CD. This
     applies to any CDs that mature on or before December 31, 2013. You
     don't have to do a thing if you'd like to renew, but with a rate
     increase like this, it's a good time to add money to your maturing CD.

     How does it work? Your .25% rate increase will be added to your new
     CD's rate after the Ten Day Best Rate Guarantee period to ensure you
     maximize your earnings with us. This means you'll get the best rate we
     offer for your CD term within ten days, starting with your maturity
     date, plus an extra .25% on top of that rate. After that time, you can
     call us or visit us online at to find out your new rate.

     Want your money to work even harder? Because your CD is maturing, you
     can add money during your ten day grace period.

     This is our way of saying thank you for your continued loyalty.


    We're here to help, anytime. Simply visit Or just call
    877-247-ALLY (2559) 24 hours a day, 7 days a week. You can press
    '0' to reach a Customer Care Associate immediately.
cumuluscumulus362 posts since
Jan 16, 2010
Rep Points: 1,700
12. Sunday, August 25, 2013 - 8:10 PM
Cumulus, the "buy a small short(est available) term CD now and get a bigger one later with the loyalty bonus" approach is clever.  That way Mike would qualify for the bonus with the later (larger) one, although he would not get it when he bought the first CD. 
pearlbrownpearlbrown1,482 posts since
Nov 2, 2010
Rep Points: 6,440
13. Sunday, August 25, 2013 - 8:28 PM
PB, except I misread Mike's post; He was asking more about some immediate
incentive---which you nicely covered. Hopefully this awful rate environment
will eventually come to end and the convoluted (leveraging friendly EWP's)
CD schemes will get put to rest.  Kind of an organizational nightmare.
cumuluscumulus362 posts since
Jan 16, 2010
Rep Points: 1,700
14. Sunday, August 25, 2013 - 9:08 PM
cumulus and pearlbrown,

Thankyou both for your very detailed info.  I'll have to think about this one a little.

Thanks to you both, again.
MikeMike327 posts since
Feb 22, 2010
Rep Points: 876