Ally Hikes No Penalty CD To Rate-Leading Status Amid U.S. Banking Crisis

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Deal Summary: Ally Bank CD rate increase - 11-month No Penalty CD (4.75% APY), no minimum balance.

Availability: Nationwide (online bank)

The bank run and subsequent closure of Silicon Valley Bank last week may have sparked fear at Ally Bank. On Saturday, Ally Bank did something very unusual. It did a weekend rate hike, increasing the rate of one of its savings products to a rate-leading level. With Ally being listed as one of ten banks “that may face trouble” in the press, I think this might have been one action done by Ally Bank to reduce outflows of deposits from skittish customers. The latest news on Sunday night may help calm fears of more bank runs. The government announced that all uninsured depositors at Silicon Valley Bank will be made whole. The Fed also announced “it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors.” (I’ll have more on this news later.) Due to these Sunday announcements, Ally Bank may not keep this latest deal for too long.

APYMINMAXINSTITUTIONPRODUCTDETAILS
4.15%--Ally Bank11 Month No Penalty CD
Rates as of February 19, 2024.

The unusual rate hike this weekend was the 75-bp rate increase of Ally’s 11-month No Penalty CD. The 11-month No Penalty CD now has a 4.75% APY. The media may not notice this rate as unusual since many online banks now offer 12-month standard CDs with a 5.00% APY. That may be one reason Ally chose the big rate hike on the No Penalty CD. Also, the No Penalty CD rate increase doesn’t automatically raise Ally’s deposit costs on existing accounts. When the savings or money market rates increase, existing account holders immediately get the benefit. Only Ally customers who open the No Penalty CDs will benefit (or who have recently opened a No Penalty CD.) This minimizes Ally’s deposit costs. The high-rate No Penalty CD may help keep more deposits at Ally, but Ally may not need to be so aggressive with deposit rates after the Sunday announcements from the Feds. As I mentioned above, this 4.75% APY on the No Penalty CD may not last long if the Fed’s actions on Sunday reduces deposit outflows.

Thanks to DA readers mnysvr and slowboat for posting on the No Penalty CD rate hike in the DA Forum.

On Friday, before the closure of Silicon Valley Bank, Ally Bank did a few smaller rate increases.

Both the Online Savings Account (OSA) and Money Market Account (MMA) had rate hikes, but the MMA rate had a larger increase, and it now exceeds the OSA rate by 20 bps. The OSA rate increased 20 bps to 3.60% APY, and the MMA rate increased 30 bps to 3.80% APY.

APYMINMAXINSTITUTIONPRODUCTDETAILS
4.40%--Ally BankMoney Market Account
4.35%--Ally BankIRA Savings (Traditional, Roth, SEP)
4.35%--Ally BankSavings Account
Rates as of February 19, 2024.

I’m disappointed that Ally has chosen to widen the rate gap between the OSA and the MMA. The only reason that I see for the MMA rate to be 20 bps higher than the OSA rate is that it might be saving Ally on deposit costs. Many more customer deposits are probably in the OSA than in the MMA. Many customers may not quickly move their money into a MMA, and that will save Ally money. Also, the MMA isn’t available inside of an Ally IRA. The OSA is the only liquid account available in the Ally IRA. The only reason I could see Ally justifying the higher rate on the MMA is due to the new savings features on the OSA such as the boosters and buckets. However, these should be less costly for Ally compared to the checks and debit card available on the MMA.

Ally Bank also increased rates on Friday on a few of its CDs.

APYMINMAXINSTITUTIONPRODUCTDETAILS
4.65%--Ally Bank12 Month High Yield CD
4.45%--Ally Bank9 Month High Yield CD
3.75%--Ally Bank2 Year Raise Your Rate CD
3.75%--Ally Bank4 Year Raise Your Rate CD
Rates as of February 19, 2024.

Ally Bank increased the rate of its 20-month Select CD by 65 bps to 5.00% APY, which now matches Ally’s 18-month High Yield CD rate. For those looking for long-term 5% CDs, this isn't long enough. Nevertheless, it's a step in the right direction.

Ally Bank increased its 12-month High Yield CD rate by 25 bps to 4.50% APY and its 9-month High Yield CD rate by 65 bps to 4.15% APY. With the 11-month No Penalty CD at 4.75% APY, this is the only time that I remember when Ally’s No Penalty CD rate was higher than its 12-month CD rate. It’s nice to see Ally’s 9-month CD rate being competitive. Ally has a long history of keeping the rates of its short-term CDs (under one year) uncompetitive. Of course, with the No Penalty CD rate at 4.75%. The only reason to choose this 9-month CD over the No Penalty CD is if you have an Ally IRA since Ally doesn’t offer the No Penalty CD in an IRA.

Lastly, Ally Bank increased the rate of its two Raise Your Rate (RYR) CDs by 45 bps to 3.75% APY. Both the 2-year and 4-year RYR CDs now have a 3.75% APY. It’s nice to see a big increase on these RYR CDs, but they’re still too low when compared to standard 2-year and 4-year CDs at other online banks. They’re low even when compared to Ally’s High Yield CDs. Ally’s 3-year and 5-year High Yield CD rates are now 4.25% APY, 50 bps above the RYR CD rate. By keeping the RYR CD rates low, Ally has been unfair to customers who had viewed these CDs as a way to keep pace with rising rates. It’s understandable that the RYR CD rates would be below the standard CD rates of comparable terms, but the RYR rates have been kept too far beneath the standard CD rates in my opinion.

Thanks to DA readers JVW, LanceTX and RichardW for their DA Forum posts on the Friday rate increases.

11-Month No Penalty CD

The No Penalty CD (4.75% APY) now has a 95-bp rate advantage over the Ally Money Market Account (3.80% APY) and 115-bp rate advantage over the Ally Online Savings Account (3.60% APY). This is the largest rate advantage over the savings and money market accounts that I can remember. This is an easy way for Ally Bank customers to get an extra 95 bps on their liquid savings. There are just a few minor downsides to consider. First, when you open the No Penalty CD, you can’t withdraw the funds for the first six days following the date you funded the CD. After that date, you can access the funds (principal and all accrued interest) without penalty. However, you can’t make a partial withdrawal. To access the principal, the CD must be closed. This can be done quickly and easily by using Ally’s online CD management system. If you close the CD and transfer the funds back to your Ally savings, the closure and transfer are immediate. The last downside to consider is the risk you might miss out on a higher online savings account rate in the future. It’s possible that the Ally savings and money market rates will rise above 4.75% in the next few months. If that does occur, you’ll want to close the No Penalty CD. It’ll also make sense to close the CD if Ally increases the rate of the No Penalty CD. In that case, you’ll want to close the CD, move the funds to the Ally savings, money market or checking account, and then open the new No Penalty CD with those funds.

High Yield and Select CDs

With a 5.00% APY, the 20-month Select CD and the 18-month High Yield CD are the only Ally CDs with rates higher than the 11-month No Penalty CD. If you think rates won’t stay high, longer-term CDs make sense. With a banking crisis that might not be over, there are definitely signs that suggest that rates may not stay high for too long. If you want to hedge your bets, longer-term CDs make sense. The 20-month Select CD isn’t that long, but at least you’ll keep earning 5% APY through most of 2024.

One thing nice about the 18-month and 20-month CDs is that the early withdrawal penalty is fairly mild for this maturity length, only 60 days of interest.

Ally Bank’s Early Withdrawal Penalty and Early Withdrawal Process

Ally rarely has the highest CD rates, but it has two significant advantages: 1) mild early withdrawal penalties, and 2) an easy and quick process to request an early closure and to receive the funds.

Ally has the following description of its early withdrawal penalties on its website for its CDs:

  • 24 months or less: 60 days of interest
  • 25 months – 36 months: 90 days of interest
  • 37 months – 48 months: 120 days of interest
  • 49 months or longer: 150 days of interest

One downside with Ally’s CDs is that they don’t allow partial early withdrawals. If you need some of your CD principal before maturity, your only option is to close the CD and withdraw the entire amount.

There was a long period of time when Ally disabled the capability to request online an early closure of a CD. It instructed the customer to call to request an early closure. I’m happy to report that the online CD closure capability is back at Ally and it’s still active. When you log in, go to the “Early Withdrawal” section of “Manage CDs”. At this page, you can see your CD’s current balance that includes accrued interest. It also displays the early withdrawal penalty and the “after penalty” balance. This allows you to confirm exactly how much interest you will lose before you request an early closure. To receive the funds, it offers two choices: 1) online transfer, or 2) check. If you choose “online transfer”, you can select the destination account. Any of your Ally liquid accounts are options. Also, any of your external linked accounts are options. If you choose an Ally account, it informs you that “funds should post to your account immediately.” If you choose an external linked account, it informs you that “funds should post to your account within 3 business days.” I can confirm that the funds from a closed Ally CD are immediately transferred and made available in your Ally liquid account that you selected.

Ally’s Ten Day Best Rate Guarantee

For those who opened the No Penalty CD in March before the 4.75% APY took effect, you should get the new 4.75% APY. This is due to Ally’s Ten Day Best Rate Guarantee. Here are the details as Ally describes in its FAQ:

When you fund your non-IRA CD within 10 days of your open date, you'll get the best rate we offer for your term and balance tier if our rate goes up within that time. The Ally Ten Day Best Rate Guarantee also applies at renewal.

There is no minimum deposit to open a CD or get the Ten Day Best Rate Guarantee, but you may get a higher rate with a higher opening deposit.

Other Ally Bank CD Features

Few online banks offer the features that Ally offers for online CD management. When you log into your account, you can change things like how interest is disbursed. Ally allows you to have the interest paid monthly, quarterly, semi-annually or annually. You can also change how interest is paid. You can choose for the interest to be credited back to the CD, paid out to your account or paid as a check. The software can also be used to change renewal options and to request an early withdrawal.

Loyalty Reward of an Extra 0.05%

Ally Bank continues to offer a 0.05% loyalty reward when you renew your CDs. There’s an easy way to use this loyalty reward to get an extra 5 bps on all of your Ally CDs.

Beneficiary Designations and Extending FDIC Insurance

Another nice aspect of all of Ally’s accounts is the ability to designate beneficiaries. You can choose up to ten beneficiaries for each of your non-IRA accounts, and you can choose the designation of either “In Trust For” or “Payable On Death”. Beneficiaries can be individuals or non-profits/charities. You can also specify how to distribute the funds (either equally among beneficiaries or by specific percentages.)

Beneficiary designations can be done online in account management software after the account has been opened. These features make it easy to maintain FDIC insurance on deposits in excess of $1 million. I described how this can be done in this blog post.

Ally now requires that you provide beneficiary identification. According to Ally, the FDIC added regulatory requirements for recordkeeping which required Ally to maintain “complete and accurate beneficiary information.” The beneficiary’s Social Security number or Tax ID isn’t the only option. Other options listed by Ally include, Alien Identification Card, Driver’s License, Valid Passport and Military ID.

Ally also allows customers to open an account in the name of a Trust.

Deciding to Break an Old Ally CD

If you have any old Ally High Yield CDs, it might be worth closing them and moving those funds to a new 11-month No Penalty CD or a new 20-month Select CD. With today’s “high” rates, it won’t take too many months before the interest from the new high-rate account offsets the loss of the early withdrawal penalty. The more time left on your existing CD, the more likely that you’ll benefit from breaking the CD.

To help with this decision, please refer to the DA When to Break a CD Calculator. Enter the APY, balance, early withdrawal penalty, and remaining months of your current CD. Then enter the APY of the new CD. The Calculator will tell you if you should or should not break your CD.

Another High-Rate Option at Ally

Even though the Feds have announced new support for banks to avoid bank runs, there will still be concern for those who have over the FDIC deposit coverage limits at any bank. Those who have that much cash might want to consider money market funds. They’re not FDIC insured, but they’re considered very conservative. Ally customers can easily take advantage of money market funds by having an Ally Invest account. As described in this MyMoneyBlog post, Ally customers with Ally Invest accounts can easily move their cash into money market funds to earn yields which are currently in the mid 4% range.

Availability and Account Opening

Ally Bank offers its services and product line to individuals 18 years or older, who have a valid Social Security number or Tax ID and a U.S. residential street address.

In the online application, Ally asks “have you placed a security freeze on your credit?” According to Ally:

If you have a freeze on your credit as a feature of credit security monitoring, you'll need to request a "federal lift" before you submit your application. Once your application is processed you can re-instate the freeze. If you are already an Ally Bank customer, you can complete the application, and we'll contact you to verify your identity.

We'll use your credit information to verify your identity, protect you from identity fraud and comply with federal regulations. Your credit score won't be affected.

Applying for an Ally account can be done using Ally Bank’s online application or by calling Ally (877-247-2559). You can fund your new account in a few different ways:

  • Transfer from an Ally or non-Ally account
  • Check (by mail or Ally eCheck Deposit)
  • Wire transfer

To open one of the Select CDs, you’ll have to start at one of the Select CD promotional pages (either the 20-month page or the 13-month page.) This is for both existing customers and new customers.

Bank Overview

Ally Bank (FDIC Certificate # 57803) has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 7.47% (excellent) based on June 30, 2022 data. In the past year, Ally has increased its non-brokered deposits by $1.13 billion, an above average annual growth rate of 0.84%. Please refer to our financial overview of Ally Bank for more details.

Ally Bank has a long history as an online-only bank. The name used to be GMAC Bank. The name change to Ally Bank was completed in late 2009. My first posts on GMAC Bank were in early 2006. Back then it only offered money market accounts and CDs. The Online Savings account was launched in 2008, and the Interest Checking account was launched in 2010.

How the Ally 11-Month No Penalty CD Compares

When compared to other no-penalty CDs tracked by DepositAccounts.com that are available nationally, have a term of at least 11 months and have minimum deposit requirements of $10k or less, no banks or credit unions have a higher rate than the rate offered on the Ally Bank 11-month No Penalty CD. The following table compares the Ally Bank 11-month No Penalty CD to the three highest-rate CDs from other banks and the highest-rate CD from a credit union.

The above information and rates are accurate as of 3/13/2023.

To look for the best CD rates, both nationwide and state specific, please refer to our Best CD Rates Table page. For the best no-penalty CD rates, please refer to our No Penalty CD Rates Table of the liquid account summary.

Related Pages: savings accounts, money market accounts, 1-year CD rates, nationwide deals, Internet banks

Comments
SamFam
  |     |   Comment #1
Considering they failed to give me my full $500 bonus on their last promotion (I only got $57) and they failed to follow up on the review they promised would happen in 10 days, Ally is no longer one of my favorites. I will continue to use them as an ACH hub, but that's about it.
P_D
  |     |   Comment #2
Ally will be getting no additional deposits from me until they pay me the bonus they have owed me for one month with interest. I've been a steady depositor for about 14 years yet like you they not only didn't pay the bonus, but after almost an entire month went by they have not even responded to the case that I filed as they promised they would twice.

No response, no communication of any kind. It's completely unacceptable.

PS Fed futures predicting 52% chance of no rate increase at the March meeting. For the last month it has been predicting 0% chance of that. Stands as a reminder that such complex predictions are tenuous at best since a single shock to the economy can derail them instantly. Another data point supporting diversification over timing.

I'm also considering charging Ally an NSF fee.
MY2CENTSWORTH
  |     |   Comment #4
Wonderful...from an increasing possibility of a half percent rate hike to a big ZERO, huh? While I realize that there may be concern due to the recent fallout from the FI's problems that definitely has an effect on consumer confidence. This may turn out to be more of a poor management issue than anything else and from what I see locally and read about on the national and world scene, the inflationary pressures continue to be a paramount issue that requires continued additional attention. Being a retired saver with no debt, I don't necessarily need or want a half point rate increase but the "system", including real estate and the stock market needs a reality check in order to be brought back down to something closer to being realistic and to help slow things down as it pertains to the run-away inflation we are all burdened with.
P_D
  |     |   Comment #5
Keep in mind the Fed future markets are volatile right now. It's because no one can predict what the Fed will do except insiders. That 52% has already dropped to 41% at this moment.

But if futures have any predictive power at all they are indicating that the increase won't be more than one quarter point. And since the fixed income markets have already priced in a half-point increase as a sure thing, yields are dropping sharply.
buckeye61
  |     |   Comment #3
Good overview Ken! I also doubt this rate will last long, but its a very appealling offering. Sadly, the game they're playing with their OSA is frustrating for long time customers! The new features on the OSA that you mention don't produce any extra interest earnings and probably doesn't cost Ally a nickle. Also, they should scrap the "raise your rate" 2/4 year CD accounts, these products are a rip-off because of the uncompetitive rates compared to standard CD's of the same term.
P_D
  |     |   Comment #6
"With Ally being listed as one of ten banks “that may face trouble” in the press, I think this might have been one action done by Ally Bank to reduce outflows of deposits from skittish customers."

Until now it seemed unlikely that financial stress was the reason that Ally did not pay the bonuses they owe their depositors. Now I think that would be a leading theory. To that extent, they are already in default and have broken their agreement with their depositors.

it's an under the radar default.
anony1
  |     |   Comment #110
Of additional concern may be that Ally's Bank Health is of record only through Q2 2022.
John19
  |     |   Comment #7
Ally won't give P_D his bonus cause they're broke lol.
Sanger
  |     |   Comment #8
Hi, I am watching CNBNC right now and Ally stock is taking a big hit right now I hope most people have less than 250 thousand or less.
Robb
  |     |   Comment #9
Ally down about 12% this AM on the open. Republic Bank down 60+%. Banking index down 25% over the past 6 trading sessions…ouch!
Kerry2
  |     |   Comment #11
They will never get my business again, $500 bonus is confiscated by them (mini bail-in event).
They can no longer be trusted with my money, I think they will stage another "server glitch" and they will claim that they do not have any record of that CD and either the interest or the principal will be confiscated or both.
I already closed all of my accounts with them and I do not think to open another account ever.
They are on the verge of collapsing, what is holding them up as bank is a "creative accounting scam". Do not let be fooled twice, it will be your fault this time.
John19
  |     |   Comment #12
Hope not, I like Ally and have a good amount of money there. That bonus situation is beyond ridiculous though.
P_D
  |     |   Comment #14
I understand mattress sales are booming!
momhott
  |     |   Comment #15
I too am short $500 as they are investigating my claim. Give me a break. Just curious if anyone knows anyone who recieved the 1% bonus.
P_D
  |     |   Comment #16
Yes a number of people here and elsewhere have reported that they received their bonuses. Most of them report they were paid around February 8th.

I filed a formal case with them on February 15th and called them several times since. They had nothing to say except that they promised to update me twice and did not. It seems likely now that they made a conscious decision not to pay the remaining bonuses to conserve capital. In other words they defaulted on their agreement intentionally. That would explain why they don't want to tell you anything at all about it. Remains to be seen whether it will ever be paid. May take a lawsuit to recover it if it is recoverable at all.
steve_okc
  |     |   Comment #23
On Feb 08 ,I also received my $500 bonus
deeMatrix
  |     |   Comment #21
Both me and my wife received our respective $500 bonuses on time, despite all the concern raised by many over moving the money that was initially deposited in savings to higher-earning No Penalty CDs during the retention period.
barry_NY
  |     |   Comment #92
I received the $500 bonus on Feb 8. I read the rules and made sure that I was always within their rules. One small dip out of bounds would have canceled the bonus.
mffarrell
  |     |   Comment #18
I received my $500 bonus on-time.
buckeye61
  |     |   Comment #20
I received my full bonus on February 8th, but mine was substantially smaller!
JimDavis
  |     |   Comment #24
got my bonus no problem , long ago

whats the story ?
mffarrell
  |     |   Comment #25
I have seen this movie before when I had deposits at Washington Mutual and IndyMac. I just transferred all my balances out…
I am not panicking, but need immediate access to my funds and can’t wait days for the FDIC to payout.
omoroz01
  |     |   Comment #27
How long did you wait to get payout from FDIC when you had deposits in Washington Mutual? How did it work?
omoroz01
  |     |   Comment #28
How long did you wait to get payout from FDIC when you had deposit in Washington Mutual?
Mak
  |     |   Comment #29
I had a CD at Washington Mutual, can’t remember who took it over now but they kept the rate and never closed the CD
Mak
  |     |   Comment #30
I think it was Chase but it’s been a while
Marfa
  |     |   Comment #26
We got our bonuses without fail and as one of you suggested, we are not bots or paid by the bank
mix
  |     |   Comment #31
The issue with the no penalty CD is that you now have to call in and talk to a CSR to get your money out early. This practice began a couple of years ago. Sometimes the hold times to talk to a CSR are very long. I had to do this for four CD's and I told myself I would never do it again.
DMC
  |     |   Comment #33
I don't believe this is true. Should be able to close within seconds online. Say what you want about Ally but opening and closing these CDs is about as easy as it gets.
tommie188
  |     |   Comment #34
This is not true! I have done many no penalty early closures including 4 this weekend. Stop spreading inaccurate information.
blazer9
  |     |   Comment #35
Ditto
Closed 3 last night opened 3
4.75% this morning.
No Foul-ups
mix
  |     |   Comment #43
Ken literally wrote an article about it. It went on for quite a while.

https://www.depositaccounts.com/blog/2020/11/ally-banks-removal-early-withdrawals-online-cd-management.html
DMC
  |     |   Comment #67
Thanks, mix. I never saw this article and did not have any NPCD during this time so I was not impacted by it. But I agree it is concerning that it went on for a while and even if Ally later restored the ability to close a NPCD quickly online (which it seems to have now done) it could easily take that feature away again given the current environment. Even then, of course, although it would potentially require an annoying phone call to close, the NPCD might still be good short term, highly liquid savings option for some.
MY2CENTSWORTH
  |     |   Comment #38
mix, please check your source as mentioned by others the NPCD can be closed, opened, transfered, etc. with a few clicks on the keyboard and I have done it a few times since late last month and earlier this month including this morning
mix
  |     |   Comment #41
My source is me. I literally had to call and talk to a CSR. It was covered on this forum before by other people as well.  If they resumed with allowing online closing, I am happy.  But nothing prevents them from doing it again and wasting my time.
IGR
  |     |   Comment #47
I can actually concur with @mix. less than a month ago and even before I had to go through CSR.
While it is possible to open or rollover NPCD online, the ability to close it prior to maturity was removed some time ago and Customers were promptly notified about the change of the functionality. it is such an insignificant issue where or not it was restored!
MY2CENTSWORTH
  |     |   Comment #50
IGR, believe me and others here as it has definitely been changed. If you bothered to read this current post from Ken he even mentions it in a lengthy paragraph that details how to go about the entire process. They must have changed it back possibly due to too many complaints or due to the fact that it can happen often tying up their CSR's for something that is totally unnecessary. I do recall the write up that Ken did but I didn't have any use for their NPCD at that time and previously it had been easy open, easy close, transfer all with a few keyboard strokes. I've done 7 of them over the past 2-3 weeks and I'll say I'm pleased that they indeed must have changed it back.
IGR
  |     |   Comment #75
Sure I am believing you.
I have no standing NPCD with Ally.
Let's not ridicule ourselves over such worthless non-issue.
There are infinitely more important concerns competing for our time and keyboard availability.
I hope you'd agree.
mix
  |     |   Comment #73
The kicker was after waiting on hold for an hour to talk to someone it took the lady about 40 minutes to close the CD's, 10 minutes each. I have no idea wtf she was doing but it sounded like she was fighting with the computer system. I started cracking jokes trying to make her laugh about how this was a customer retention scam like AOL used to do.
LanceTX
  |     |   Comment #77
Not sure what may have been going on with yours if you had to call. I have opened and closed and then opened NPCDs again at least a dozen times since November and have never had to call or ever involve a CSR. I typically keep at least two at a time and always close and reopen new ones when the rate goes up. Each time I've done it online in less than two minutes. I've had accounts at Ally since 2018 and it's always worked that way for me at least.
IGR
  |     |   Comment #87
True!
Ally's CS is miles away from pre-pandemic.
And the dozen of eggs three times of used to be.
There the real kicker is to decide what is important "in time of the cholera".
happyharold4
  |     |   Comment #104
False Info----I just closed 2 11 month no penalties cd's online this morning. Home page click on " Manage CD's "---New page with 3 options on left---Click on early withdrawal and just follow other prompts. Mine were in the name of trust and it still let me do it.
Buckeyes
  |     |   Comment #124
@mix- I've closed and reopened 4 this year instantly without talking to anyone but my cat.
SmittyInTheCity
  |     |   Comment #32
Very unfortunate Ally failed to pay the bonus for some. My bonus was paid around feb 11th or so
Kerry2
  |     |   Comment #37
According to a CSR, there are over 10000 customers who have not received the bonus. Do not be complacent, you could be their next victim. Consider yourself lucky at the moment.
MY2CENTSWORTH
  |     |   Comment #39
Kerry, I'm curious if you are a newbie on this site as I don't recall seeing much of you in the recent past, but gee, you seem to have all the answers! NOT!
Kerry2
  |     |   Comment #42
MY2CENTSWORTH, thanks for asking, I've been in the banking business long time and know all of the ins and outs and can smell a fraud from a mile away. I always speak the truth (after I verify it on few other different sources), if that is offensive to you, please do not read my posts, they are meant to educate and disclose the truth, I have nothing to gain or lose by telling of what is going on in the banking business.
Please do your own research, before you intend to muck the posters and then counter comment with opposite facts, if you think the post is not true. Thanks again for asking.
MY2CENTSWORTH
  |     |   Comment #52
tommie 188, thanks! I couldn't have said it better myself! Unbelievable! Unfortunately, some people follow and believe the nut cases that are everywhere these days!
Evil_Capitalist
  |     |   Comment #60
It was worth a try. Folks should know that you can REPORT posts that are well known BS and other such misinformation. The Mods do seem to take action at removing a lot of this partisan nonsense and associated drivel if enough people complain about it.  And actually ban repeat offenders.
blazer9
  |     |   Comment #95
Kxxl Aid Kxxl Aid Tastes great
Kzzl Aid Kzzl Aid Can't Wait
Join His Party
IGR
  |     |   Comment #40
i went through entire online application(as of new client), short of submitting it without seeing any reference to "federal lift".
I wonder why, if indeed, Ally would use such an unprofessional term.
Paper form says it differently; "If you have a freeze on your credit as a feature of credit security monitoring, we may contact you to lift the freeze temporarily to verify your identity."
ALSO, comes to ubiquitous lists of 10 or 20 Banks exposed to SVB.
ALL this lists come from single source without any peer review and reference to creditworthy data.
Initially published by MarketWatch and reposted by Reddit, but removed from Morningstar.
I have zero confidence that these lists are kosher. Could it be that we are here spreading the rumors and advancing malicious agenda?

I have received Ally bonuses in the past and recently without any issues.
As promised, $454 bonus was deposited to my account on February 8th
The weird amount represent the fact that I made no effort to maximize the bonus and received it in the course of conducting continuously typical banking business with Ally.
Ally is known for overcomplicating the rules of the promotions, but once rules are navigated properly Ally acts fair and honest.
P_D
  |     |   Comment #46
"Ally is known for overcomplicating the rules of the promotions, but once rules are navigated properly Ally acts fair and honest."

Except when they don't pay.
IGR
  |     |   Comment #85
i had my share of missing the bonus pay with multiple FIs
sometime I prevail by arguing myself against wrong.
sometime I employed CFPD doing arguing on my behalf.
and sometime I failed and CFPB was no help because i was not diligent enough reading the small print and verifying my eligibility.
the bonus is an exercise of gamesmanship where the first rule of the game is know the rule of the game.
What is the issue here? There are so many deals... just move on to next one.
There is no way the Fi of any size and reputation would arbitrary renege on publicly announced contract.
your $500 bonus is a 20 minutes of paid time some SVP would have to spend dealing with it!!!!
P_D
  |     |   Comment #91
In 2021 and the first part of 2022 I think I probably did 15 bonus deals or more. I never once had one that did not pay as expected.

Since then I've done maybe two or three more, but have been losing interest in it because I have more lucrative uses of my time and the hobby value wore off. Of all of the bonuses I've done Ally is the only one that did not pay.
Marfa
  |     |   Comment #71
Amen !! IGR. My account had a lot of transactions throughout the promotion and there was no problem with Ally’s delivery of my promotion. I had to read their terms more than once to make sure I followed all the terms. I am wondering if some people tried to “ game the system “ and now are mad that it didn’t work. Maybe others didn’t follow all their terms. It’s really important to be honest on these websites.
P_D
  |     |   Comment #76
I can't speak for others but there is 0% chance that I didn't qualify for the bonus in my case. I have an email from Ally confirming that I was enrolled, I put $50,000 into the account during the required period, and didn't touch the account until 2 weeks after the ending of the required period. It's all in black and white in the transaction record and simple to confirm.

Before they apparently told their reps to clam up, the first rep told me that he looked at everything and confirmed that I qualified. He also told me they were getting a lot of calls about it from other people who qualified but never got paid. It was clear to me from that first call that something was seriously wrong at Ally.

When I called today, two days short of 1 month later after I filed a case and got a case number from them and they said they were going to look into it, they didn't say they looked into it and I don't qualify, they said the case is still open and they haven't looked at it yet.

They may well be telling me the truth that they didn't look at it yet. Why would they bother looking at it if they don't intend to pay it either way? During that month I called twice and they promised both times they would get back to me to follow up. They never did. I would call that unfair and dishonest.
choice1
  |     |   Comment #78
Since when is it a business norm to be fair and honest? Your frustration is aimed at the wrong audience, ie we’ve known for…you were ****ed but move on beyond the venting and learn from the experience…write it off or go for the educational vein…ie file a lawsuit or all the above!
momhott
  |     |   Comment #81
I could have just copied your comment. Been given same runaround. So according to a comment I should learn from this issue. Please I am 80 years old and was part of financial industry for 60 years. The $500 is not going to change my life, but just don't like getting shafted.
mffarrell
  |     |   Comment #82
I think the answer may be simple, Ally is cash-strapped right now and is delaying payments.
Mikey1
  |     |   Comment #44
The key to this promotion is the face that it’s no penalty. You don’t like 4.75% in a few weeks? Bail.

This isn’t a bad deal, even if it’s nowhere near the highest rates. We saw today a huge stall in Treasury bill increases: the 26 week term which auctioned last week at 5.183% dropped to 4.895% today. That’s a huge red flag to me. And it makes Ally’s offer intriguing, at least for the time being.
samiam_68
  |     |   Comment #53
What happened to the 20 month CD special? I don't see it on their site.
MY2CENTSWORTH
  |     |   Comment #59
samiam_68, I had to ask the same question in another post. I have no idea why they hide the 13 and 20 month, but here is a link to the 20 month you asked about.
https://www.ally.com/go/bank/20m-select-cd/
Burrows
  |     |   Comment #68
Anyone else have glitch with distribution? I want to deposit to another account and it changes to paper check
Buckeyes
  |     |   Comment #79
I have several bonds with Ally, and I feel as if I should be worried. Should I?
mffarrell
  |     |   Comment #84
I would be worried, assuming you hold Ally bonds. If Ally goes bankrupt, the bond holders will become the new shareholders, if Ally survives.
P_D
  |     |   Comment #86
When you say you have some bonds with Ally, do you mean you own Ally corporate bonds issued by Ally or you own bonds in an Ally brokerage account issued by entities other than Ally?

If it's the former, I would be concerned because there is clear evidence that they may be in financial trouble.

If it's the latter, you own bonds in an Ally brokerage account, but they are not Ally corporate bonds, you are likely covered by SIPC which won't protect you against market losses but will protect you in the event that Ally fails, as long as you meet the insurance requirements. You should not lose any of those bonds even if Ally fails as long as you are within the insurance limits.
Buckeyes
  |     |   Comment #100
the bonds I own are resale market callable bonds that I got for a nice rate on E*Trade. One matures in May, the other in October.
P_D
  |     |   Comment #105
If they are Ally corporate bonds, they are not insured regardless of what market or what broker you purchased them from.
IGR
  |     |   Comment #113
@P_D is correct.
Ally keeps being mentioned by security analysts
My reading of that, they are so far concerned rather about the performance than the risks.
We have learnt 6 days ago that in current market the conversion from performance to risk takes 48 hours.
I have no investment advice.
IGR
  |     |   Comment #89
I would...no suggestion attached pending clarification to @P_D comment bellow
Pay attention to posts #68 and #82.
If paper check distribution is an attempt to slow distribution, Ally is in distress.
If this is the glitch that is fixed or the policy that is reversed, Ally feels safer and you could relax a bit.
To the extend that Corporate Bondholders enjoy no protection, second/third to Shareholders to be wiped-out and second/third to last to be reimbursed.
Depending on the Bankruptcy chapter there may not be shares of the dissolved entity and after all creditors are paid you'll receive cents on dollar as final distribution, or...The entity is allowed to recapitalize itself through new emission and you receive shares worth cents on dollar.That is in case of court supervised voluntarily Bankruptcy. 
Where FDIC shuts the Bank, FDIC becomes sole asset owner with no regard to former Share or Bond Holders.
After asset is liquidated Bondholders may or may not get whatever is left after
Depositors and Creditors are paid.
Please, consult with Financial advisor...I am way out of my comfort range on this subject.
Nothing personal, but I wonder how others could speak freely on the issue that takes a carrier to master. 
P_D
  |     |   Comment #90
Woops this post is meant as a response to Buckeyes... Apologies because I am posting on my phone and can't post this properly but this article certainly raises a red flag about Ally.

"Ally Financial Inc. (ALLY) -- the third largest bank on the list by Dec. 31 total assets -- stands out as having the largest percentage of negative accumulated comprehensive income relative to total equity capital as of Dec. 31.

To be sure, these numbers don't mean that a bank is in trouble, or that it will be forced to sell securities for big losses. But SVB had both a troubling pattern for its interest margins and what appeared to be a relatively high percentage of securities losses relative to capital as of Dec. 31."

https://www.morningstar.com/news/marketwatch/20230311312/20-banks-that-are-sitting-on-huge-potential-securities-lossesas-was-svb

It's a little technical, but to try to simplify, The reason SVB failed is that a lot of their investments were tied up in long-term bonds which have been creamed by inflation. Inflation is what got them in trouble. So when depositors started demanding money, they had to liquidate those bonds at deep losses. Apparently Ally MAY have a similar investment issue that could be a serious problem.
IGR
  |     |   Comment #93
I know close to nothing about these issues and understand slightly more to none.
However, this guy-"By Philip van Doorn" has become SINGLE expert quoted everywhere as Oracle of the kind, on the occurrence that will baffle Noble prized Economists for ages. He published his "Doom" assessment as initial 10 Banks list couple of hours following the public disclosure, then followed with 20 Banks list few hours later... I wonder.
None of the reasons are true, no matter how much they oversimplified.. not the investments, not the inflation, not even the losses.
Speaking of losses, this van Doom reports $1.9B of negative book value and $1.8B of realized losses!!!
For the Bank with $200B in total assets and $175B of liabilities it is a mosquito bite. it is Nonce, it is like me declaring Bankruptcy and getting evicted because I spent $1.5K on weed while gambling away $50K since December 31st.
The real culprit of SVB failure is macro-economical, it is a systemic Liquidity Crisis.
and the reasons are rapidly rising interest rates and deflation of fixed income securities AND the failure of biggest and most liquid Fixed Income market to exchange "marketable" Securities for Cash. The failure of SVB is that it relied almost exclusively on Silicon Valley startups, kind of customers who by the very nature generate little to none cash inflow and when IPO and Private Equity injections dried up SVB was left with nothing but the Deposits outflow. Then was Goldman, Moody's, FDIC and finally BTFP.
We only talk here about this because irresponsible opinions can spark another run for another no good reason.
P_D
  |     |   Comment #96
"We only talk here about this because irresponsible opinions can spark another run for another no good reason."

When you say "we," I am not sure which "irresponsible opinions" you are repeatedly referring to. But I am already a victim of Ally depositor default and come from a banking career. I see no reason to remain silent about it or to make believe I don't understand the issues. I predict nothing. I post facts.

The last thing I want is to see is Ally fail as it would be an administrative nightmare for me. I have skin in the game. But neither do I want to remain silent and be caught by surprise and have them deal me yet another loss without discussing what's going on. They need to get their act together. I have been talking about it for at least a couple of years. I hope they will take this opportunity to do just that. And I hope the frustration they are hearing from their customers will be a catalyst for them to do it before they lose the chance to do so.
Tran
  |     |   Comment #98
For someone that always trumpets they come from a banking career P_D, you sure have and continue to do business with a cheap **** online bank. You should have known the inherent risks doing business with a solely online bank but yet continued that banking relationship. You continue to whine about Ally all the time as if you were tied at the hip with it. The saying " don't fall in love with a stock" also applies to any business, but I guess you don't agree. You make it sound like you can't end your relationship with Ally? Nonsense, as someone like yourself that came from a banking career it should be evident that Ally has a systemic problem that has only gotten worse over time.Either you have blinders on or you just love bringing your never ending drama about Ally to this forum for attention. Why not just do business with a top tier FI instead of a full online bank that throws around promotions they never make good on? If you had a banking career it possibly may have just been the security guard stationed at the door!
alan1
  |     |   Comment #103
I'm not interested in entering the discussion about the merits and demerits of Ally Bank. But, please, refrain from this type of comment:

"If you had a banking career it possibly may have just been the security guard stationed at the door!"

There is no reason to denigrate people who are employed as bank security guards.
IGR
  |     |   Comment #107
@P_D.
The reference to "opinion" wasn't related to yours.
As for the missing bonus, your grudges here are misplaced.
Would be more productive if you locate the contacts of Ally's Compliance Officer or "Customer Advocate" if Ally has such office and deal directly with them... you may get a response and/or resolution.
Alternatively, you have the right to file the complaint with CFPB, this way the response is guaranteed as a copy of the communication sent to CFPB.
keep in mind that CFPB will not be arbitrating the resolution in your favor.
P_D
  |     |   Comment #108
"As for the missing bonus, your grudges here are misplaced."

It's apparent that you may not be aware of this but this is a forum for participants to share information about and experiences -- both good and bad -- with financial institutions.
IGR
  |     |   Comment #111
It is apparent that you are here to share your information and dismiss other's experiences.
There, please. Ignore everything I said, it won't be helpful to your one way journey.
anony1
  |     |   Comment #109
Of possibly additional concern: I see that Ally's Bank Health rating is only through Q2 2022.
Kaight
  |     |   Comment #99
Thanks to Ken for posting regarding this Ally NPCD "giveaway". I opened my second account this morning. At this rate of interest Ally has significantly exceeded return on my Northern Bank MM account. So money is moving.

I didn't bother with the Ally deal last fall. Have other stuff going on; too much trouble and annoyance. So no negative remarks from me on that one. I am (for now) keeping my Ally total south of a quarter million. That could change.

Nearly everything I do at Ally is via ACH. But yesterday they did a good job of cashing a couple of small (paper) checks for me, online with no cell phone involvement whatsoever. Fun cashing checks from home in the middle of a blizzard. Couldn't do that fifty years ago!

All in all Ally is a good bank with great service and rates.
P_D
  |     |   Comment #102
I guess it depends on your perspective but I am unable to call a bank that failed to meet its commitments under the terms of an agreement with depositors, defaulted on payments due to depositors pursuant to that agreement, failed to give depositors a reason for its default and failed to keep its promise to communicate and follow-up with depositors on the status of the payments owed a "good bank with great service."  Until that happened to me, I might have had less of an objection to that characterization.
marchrain
  |     |   Comment #101
I didn't get $500 bonus either. I followed all the requirements. I was told more than 10,000 customers are having the issue and they have to review one by one and no turn-around time. This is ridiculous and I will not deal with this bank anymore. I have moved all my money to other banks. Even they are advertising very competitive high yield CD now, I am done with this bank. They must have some bad financial problems right now. Watch out people!!
happyharold4
  |     |   Comment #106
Even if the worst were to happen---I'm pretty confident the Fed would have little problem finding a buyer to take over Ally, unlike some of the current failures which are more or less specialty FI's.
jimdog
  |     |   Comment #112
I've use this bank before and found it very user unfriendly in several ways from website to customer service. Therefore, I will pass.
Buckeyes
  |     |   Comment #114
My E*Trade account has 6 month bonds for Ally paying 7.22% today. Oh my lord that's scary. Thats the top 6 month rate available
mffarrell
  |     |   Comment #115
Not good for Ally. Are their bonds BBB rating?
Buckeyes
  |     |   Comment #116
Ally bonds are rated BBB-. These particular bonds have been sold. I didn't bite.
IGR
  |     |   Comment #117
Ratings are ****ed up as in 2008, I wonder which high school graduates Moody's hired during the pandemic.
Either way, not a good time for BBB-, I suppose if Ally offered 9% for 12 months it would still be listed
Great wealth is created by braves during crises at the cost of 100x losses of other braves.
Good call, there is no price for good night sleep.
But, keep looking, crises stirs up the opportunity.
If you are not greedy, are diversified and can handle the losses, you may hit the jack pot.
IGR
  |     |   Comment #119
"****ed up" originally was ****ed up. have no idea why it was censored.
IGR
  |     |   Comment #121
to mock the algorithm in ""****ed up" originally was ****ed up." **** spells ****
IGR
  |     |   Comment #122
to mock the algorithm in "****ed up" originally was ****ed up." **** spells ****", aka scre!w
Scottsvb
  |     |   Comment #118
This was done cause they want people to take their $$$ from other banks into a safe easy out 11month No Penalty CD. This is attractive. Other banks should follow if they want people to not go into the major banks with their $$$ or also treasuries. Fed STILL should do 50bp rate hikes cause inflation is still here and will be through the summer. They will probably do 25bps or the media will be all over them and the liberal billionaires who created this mess.
In short summery of all this. Every should know the liberal politicians and billionaires don't want the Fed to raise interest rates anymore. So after Weds Fed meeting, That night started the downfall of SVB. Coincidence right? For the Fed to STOP raising rates, the bank sector would have to crash. So they made SVB a example. Follow the dark money. SVB Board and shareholders with millions was told their accounts will be safe long before the Fed stepped in on Sunday. Signature also. They wanted the the Bond market to crash, banks just to get the Fed to stop and or drop Interest rates in the next 2-3 cycles.. Europe followed a few days later. Powel should ignore the "Dark $$ Billionaires who control Washington DC and continue to fight inflation to get to the 5.75-6.00 interest rate by July. A Pause then though end of this year will help with slow decreases after CPI drops below 4. It be nice to see more banks doing a 4.5-5 on a 3yr or 5yr CD.. might be hard though as most feel in 3 years inflation will be down to 2.5-3%
IGR
  |     |   Comment #120
Here we go. what a surprise!?
"liberal billionaires", " downfall of SVB", "Dark $$", "control Washington DC", "Bond market to crash", "Europe followed", "4.5-5 on a 3yr or 5yr CD".
Let's throw in Jews and Immigrants, sprinkle with Joe and Donald... and the Great theory of the Economy is cooked...after just "3yr or 5yr" in line to soup kitchen.
xBroker
  |     |   Comment #125
That is a long dissertation. ?? That alone kinda puts me off. Are they all this long?
Sperry8
  |     |   Comment #126
fyi - the Ally 20 mo Select CD promo term has been changed, it now shows "Promotional term available through 4/11/2023." I believe it was previously all the way through Aug. Perhaps Ally has gotten enough deposits via their CDs and no Penalty CD raises recently...
Buckeyes
  |     |   Comment #127
*please delete my post. I googled the answer. 
Ally Bank Increases 18-Month CD Rate to 5.00% APY
Deal Summary: Ally Bank CD rate increases - 18-month High Yield CD (5.00% APY) and 11-month No Penalty CD (4.00% APY), no minimum balance.

Availability: Nationwide (online bank)

After Capital One started offering a 5% CD on February 2nd, I thought it might spur other major online banks to follow. I’m pleasantly surprised to see that Ally Bank is the first to follow. Today, Ally Bank increased the rate of its 18-month High Yield CD by 75 bps to 5.00% APY. Ally Bank also increased the rate of its 11-month...

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Ally Bank Ups CD Rates, Notable Gains on 13-Month and 11-Month CDs
Deal Summary: Ally Bank CD rate increases - Noteworthy ones include 13-month Select CD (4.60% APY) and 11-month No Penalty CD (3.85% APY), no minimum balance.

Availability: Nationwide (online bank)

With the apparent slowdown of rate increases at online banks, Ally Bank bucked that trend with rate increases on several of its CDs on Friday. Ally’s 13-month Select CD and its 11-month No Penalty CD had the largest rate gains, with increases of 40 bps and 35 bps, respectively. These increases may be an attempt by Ally to encourage its...

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Ally Bank Offers a New 1% Cash Bonus Promotion
Update 10/22/2022: The promotion has been extended. Enrollment and funding deadlines have been extended by five days.

Deal Summary: Move new money into your eligible Ally Bank account and you'll get a 1% cash bonus, up to $500. Must enroll by 10/21/2022 10/26/2022.

Availability: Nationwide (internet bank) for new and existing customers.

Ally Bank introduced another 1% cash bonus promotion that’s similar to its 2020 and 2018 promotions. One improvement over 2020 is that the maximum bonus is now $500 instead of $250. Just like 2020, both new and existing...

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Ally Bank Increases Rates of Online Savings Account and Five CDs
Deal Summary: Ally Bank CD rate increases - Online Savings Account (1.00% APY), 20-month Select CD (2.35% APY), 60-month High Yield CD (2.75% APY), no minimum balance.

Availability: Nationwide (online bank)

On Friday, Ally Bank increased the rate of its Online Savings account for the second time this month. The 10-bp rate hike increased the APY from 0.90% to 1.00%. For June, the APY has increased 25 bps. This follows 25 bps of rate increases in May. Before May 10th, the Ally Online Savings account rate was stuck at its...

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Ally Bank Increases Rates of Online Savings Account and Seven CDs
Deal Summary: Ally Bank CD rate increases - Online Savings Account (0.75% APY), 11-month No Penalty CD (0.85% APY), 14-month Select CD (1.65% APY), and 3-year High Yield CD (2.25% APY), no minimum balance.

Availability: Nationwide (online bank)

Just 17 days after the last rate hike, Ally Bank increased the rate again of its Online Savings account. This time, it’s a 15-bp rate hike, which increased the rate from 0.60% to 0.75%. Before May 10th, the Ally Online Savings account rate was stuck at its bottom of 0.50% since December...

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