Ally Bank has introduced some pretty unique features to what are otherwise boring certificates of deposit. We’ve written before about its no-penalty CD with a 9-month term. As the name suggests, Ally Bank’s no-penalty CD lets you can withdrawal the money before the CD matures without incurring a penalty. Well, recently Ally introduced another innovative feature to its line of CDs called the “Raise Your Rate” CD.
The idea behind a rising rate CD is really ingenious. The CD has a 2-year term, and like most CDs, you will be charged a penalty if you withdrawal your money early. Because it is a fairly long CD, you get a higher rate than short-term CDs. The problem with long-term CDs, however, is that it locks you in at a certain interest rate. That can be particularly troubling now when most see interest rates rising over the next couple of years. Who wants to lock in at say 2% on a CD that will be paying 3%, 4%, or even more a year from now?
With Ally Bank’s Raise Your Rate CD, you get the option of raising your rate once anytime during the 2-year term. If rates go up, you can take advantage of the rising rates. Here are the details:
- Open with $0
- No monthly fees
- Extra peace of mind with Ally’s Ten Day Best Rate Guarantee
- Daily compound interest for maximum earnings
- FDIC insured. Maximize your coverage
- Automatic renewal at maturity
- Ability to withdraw and receive earned interest as income—just let us know within ten days after your CD matures
The Rising Rate CD also benefits from Ally’s 10-Day Rate Guarantee. If you open an account and fund it within 10 days, Ally Bank will give you the best rate over that 10-day period. It’s a great way to avoid opening an account and watching the interest rate go up the next day. All of Ally Bank’s CDs offer the 10-Day Rate Guarantee. Here are the details:
Absolutely. All Ally CDs come with the Ten Day Best Rate Guarantee. When you fund your CD within ten days of opening or when your Ally CD renews, you automatically get the best rate we offer during those ten days. With our Raise Your Rate CD, you get the option of a one-time rate increase any time during your 2 year term. It’s just one more way we’re making sure your money works hard and earns more.