In case you didn’t know, today is National Online Bank Day! Exciting, huh? (Don’t worry, I didn’t have it marked on my calendar, either). Some online banks are offering promotional discounts and interest rates to celebrate, with Ally being one of them.
Ally Bank is one of the more popular online banking institutions, offering a range of checking, savings, and money market accounts, as well as a number of CD options. And to celebrate National Online Bank Day, they are offering a promotional CD rate for the next few weeks.
From now until November 7, 2016, you can get a 15-month select CD with an appealing 1.25% APY. After the initial 15 months are up (around January 2018), it will automatically renew into a 12-month High Yield CD. In case you were wondering, Ally’s High Yield CDs are currently earning 1.35% for the 12-month term version (as of 10/11/16).
The promotional 15-month CD also includes Ally’s Ten Day Best Rate Guarantee. All you need to do is fund your CD within 10 days of opening. Then, Ally will automatically give you the best interest rate for your term and balance tier. This ensures that you’ll get the best rate available, even if it goes up between when you open your CD and when you fund it.
Of course, as with all Ally CDs, your deposits are insured by the FDIC up to the maximum amount allowed. Your interest is also compounded daily, ensuring that your money grows even faster.
Lastly, make sure to note that if you decide to pull your money out before the 15 months has passed, an early withdrawal penalty will apply. Ally does offer a No Penalty CD, if there’s a chance you’ll need your money before the term ends. However, the promotional interest rate mentioned here does not apply.
If you’d like to open one of these promotional 1.25% CDs, you can visit Ally here and sign up.
Updated July 2, 2017 and originally published October 11, 2016.