Update 3/11/23: Increased to 4.75%
Update 1/16/23: The no-penalty CD has increased to 3.85% APY. The $500 promotion tie-up period ended on 1/15/23 so you can simply move the funds out now, if you prefer.
Update 12/16/22: The no-penalty CD has increased to 3.50% APY. At this point there’s just one month left and you’ll gain just around $8 by breaking the old 3.30% CD and opening a new 3.50% one. (Just note that by breaking it now you’ll make the gains of the past few weeks taxable in 2022 instead of 2023.)
Update 11/17/22: The no-penalty CD has increased to 3.30% APY. You’ll probably gain around $20 by breaking the old 3.10% CD and opening a new 3.30% one. It shouldn’t take more than a minute. (Just note that by breaking it now you’ll make the gains of the past few weeks taxable in 2022 instead of 2023.)
Update 11/3/22: We go an official reply from the Ally media team confirming that it’s okay to transfer funds between eligible Ally accounts at any time. See full statement here. Last time around we experienced the same thing – when Ally ran a similar bonus there was no issue with opening and moving funds around, per this report. Just be sure not to transfer to an ineligible account like a checking account; keeping it in the same login/person/email between any number of savings, CD, and money market accounts would be fine.
Original Post
Ally Bank bumped up their 11-month no-penalty CD rate to 3.10%. This CD is essentially like a savings account since you can break it at any time.
The 3.10% is a nice rate, though not groundbreaking when compared to other savings accounts and no-penalty CDs. I thought it worth highlighting, however, since many of us have $50,000 or more locked up with Ally Bank for the next few months due to the $500/1% promo offer.
Most of us have the funds in the regular Ally high yield savings account which will be hiked up from 2.35% to 2.50% tomorrow, November 3rd. While .6% isn’t a huge difference, on a $50,000 balance you would get you an extra $300 in a year or $75 in 3 months by switching to the no-penalty CD.
In reality, the regular Ally savings rate will undoubtedly get bumped up slowly, as the new .75% fed rate hike happened today. Thus, the actual gain will end up being less than $75.
Still, it’s likely that opening the no-penalty CD will end up netting you an extra $20-$30 and takes less than a minute to open. This affects hundreds of readers so I thought it worth a headsup.
