Apprehensive about the thought of locking in an interest rate that’s good for two years or more? With Ally Bank, they give you the option to raise your rates when you want to. That’s right, Ally Bank offers a certificate of deposit like no other. They can allow depositors to increase the rate of their CD if it goes up during your term. This increase is allowed once for a two year CD, and it’s allowed twice for a 4 year CD. With this option, you get more flexibility and earning potential for your money, and at a safe investment vehicle at that.
Aside from the ability to increase your interest rate, Ally Bank also offers a competitive interest rate for their Raise Your Rate CD. Right now, their 2 year raise the rate CD is sporting an attractive 1.29% APY which is on the higher tier as compared to other 2 year CDs. Currently the highest ordinary 2 year CD is from Aurora Bank with a 1.35% rate while the lowest is with Astoria Federal Savings with 0.400%.
Here’s some other information about Ally’s Raise Your Rate CD:
– $0 opening balance
– no monthly fees
– personalized raise your rate updates to inform you when rates go up
– Ally Ten Day Best Rate Guarantee
– Daily compounded interest to maximize earnings
– FDIC Insured
One thing to watch out for however is that the certificate of deposit has an automatic renewal once the term reaches maturity. This may cause some problems for those individuals who had no intention to keep their money in the same certificate of deposit. A penalty will also be charged for early withdrawal. For every certificate of deposit, the penalty will be 60 days worth of interest.
Ally Bank is one of the trusted banks in the country. Many consumers have also given feedback at how effective their customer service and online application is. Aside from their great rates, customer service is available 24/7 and the convenience of online banking makes things so much easier.