Thoughts On A Brand Smacking New CD

Buckeyes | May 21, 2019 | 292 posts since 2018

I am thinking about getting Ally's 12 month CD paying 2.70 percent. This is because of the possibility that the Fed rate will come down, thereby affecting the rate banks will pay. Any thoughts? Ive never had a CD. It would be funded with money I hope I wont nee in the next year.

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Answers

Hooked | May 21, 2019 | 236 posts since 2019

Have you looked up the ‘CD Rates’ menu here at DA? There are many financial institutions which pay more than 2.7% for a 12 month CD but I am a fan of Ally due to its easy-to-use online interface. You need to decide whether Ally’s rates are good enough for you.

pgroove_fan | May 21, 2019 | 168 posts since 2019

There is also still the 15 month "select" CD with 2.80% APY until 5/31. If you care to extend the term a bit on at least some of your funds, here's the direct link:

:https://www.ally.com/go/bank/selectcd-15m

pgroove_fan | May 21, 2019 | 168 posts since 2019

I think it's easy to recommend Ally for someone new to CDs. Fantastic website. Full range of other account types. Instantaneous internal transfers. Very reasonable Early Withdrawal Penalties (60 days on the 12 month CD proposed).

It's true that Ally's rates are a bit off-pace with market leaders, but one stop banking has it's appeal.

HaroldAsh, if you are really worried about needing some of the money prior to maturity, consider splitting your funds up and open 2 or 3 CDs. If you need some of the money early, you'd be able to close just one certificate and have the rest continue earning the 2.7%. The 12 month Ally offer has no listed minimum deposit.

willy12 | May 22, 2019 | 143 posts since 2019

Like others said, I would look elsewhere for at least .25% more on a 1 year. Unless you are dealing with a small amount.

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