Account/ OLD Rates/ NEW Rates/ Change/
Term APY APY BPS
Savings 2.25% 2.05% -20
MMA 1.90% 1.90% nc
9-month 2.50% 2.30% -20
3-month 1.70% 1.60% -10
6-month 2.10% 2.00% -10
9-month 2.60% 1.90% -70
12-month 2.80% 2.49% -31
18-month 2.60% 2.40% -20
24-month 2.75% 2.55% -20
36-month 3.10% 3.00% -10
48-month 3.25% 3.00% -25
60-month 3.50% 3.50% nc
What if you opened a CD at Ally Bank yesterday? I've been told by Ally Bank CSRs that the rate doesn't lock until they receive the funds. It seems like the best way to open a CD fast is to have the funds in your Ally Bank's savings or money market account. If you find that they've given you today's rate rather than yesterday's rate, you may want to call and see if they can adjust it. FW member Savemeister mentioned in this FW thread that he had opened a CD on a Thursday in January at GMAC Bank and the rates changed the next day. He called, and within a few days they corrected the rate back to the rate that was in effect when the account was opened.
Even though these are big rate cuts, the rates remain competitive, and the 9-month CD is still a good deal. It's a good way to lock in the rate without the worry of losing liquidity. I described some additional details of this no-penalty CD on Monday.
The ABA Issue and the FDIC Rate Caps
I doubt these new rate cuts are low enough to satisfy the American Bankers Association (ABA). They probably would like to see rates as low as the Weekly National Rates and Rate Caps that the FDIC now publishes. That table shows the national average savings account rate of only 0.22%. As I mentioned in my Sunday post, the FDIC's new rules to restrict deposit rates of banks that are not well capitalized won't go into effect until 2010.
The FDIC really needs a table of internet-only accounts. Forcing banks to lower their internet account rates to the rates in the current rate tables would be a big mistake. I don't see how those banks would be able to keep any of their internet depositors.
Voice Your Concerns
Ally Bank has a special page where you can read the ABA letter and the response of GMAC's CEO. There's also a contact form that allows you to voice your concerns to the ABA. In addition, if you want to give your opinions to the FDIC on this issue, I included contact information in my ABA-letter post.
For more information on Ally Bank and the savings accounts and CDs, please refer to this post. Ally Bank deposit accounts are FDIC insured (FDIC Certificate # 57803).