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'shandy 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.