Ally Bank CDs (Ally Bank CD)

By: EconomyWatch   Date: 21 September 2009

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EconomyWatch

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Ally Bank CDs (certificates of deposit) are high-yield products with fixed interest rates compounded daily. US citizens above 18 years of age can apply for an Ally Bank CD account.

Ally Bank CDs: Business Profile

Ally Bank CDs are provided by Ally Bank. GMAC (General Motors Acceptance Corporation) Financial Services, having suffered a financial crisis, was renamed as Ally Bank in 2009. The bank focuses on providing financial services via the Internet. An account with the bank can be opened by filing up an online application form or by calling the Ally Bank customer service center.

Ally Bank CDs: Types

Ally Bank CDs are available in two versions - classic CD and no penalty CD. Classic CD offers a 2.00% annual percentage yield (APY) for 12 months. A no penalty CD comes with a 1.85% APY for nine months. However, no penalty CDs allow the accountholder to retrieve the deposit before maturity without any cut or penalty imposed by the bank.

 

Exclusive benefits of Ally Bank CDs are:

  • No opening balance required

  • No monthly charges included for holding Ally Bank CD accounts

  • Daily compounding of interest rates allowing the account holder to earn high interest annually

Ally Bank CDs: Benefits Over Other Banks

Ally Bank CDs are available for every size deposit at competitive rates. While most banks reserve their best interest rates for premier customers, Ally Bank offers best interest rates to all customers irrespective of the size of deposit. The bank makes efforts to keep interest rates high by prudent investment decisions.

 

Ally Bank CDs comes with auto renewal at maturity feature. Thus, all the CDs are renewed for a similar next term at maturity unless the accountholder specifically ask for payment. With the auto renewal feature, customers have the option of receiving the interest amount accumulated over the term. However, customers have to intimate the bank regarding this decision before the CD matures or within ten days after maturity.

 

Ally Bank CDs offer the Ten-Day Best Rate Guarantee program to all customers. Under this scheme, the bank guarantees the best interest rates on all CDs after ten days of opening an account.

Find out more about Ally Bank CD Rates.

 


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