Ally Bank Rate Guarantee

As we all know that the Federal Reserve Bank has put its interest rate on hold for nearly three years, a policy that had prevented the economy from slipping further into recession three years ago and aims to spur growth and recovery now that the recession has ended. While the Fed is idle, commercial banks have been anything but steady all these years, in terms of interest rates that they gave to their customers. Not only interest rates have dropped quite significantly since the Fed has done their part, the pace of change has also been very rapid. I know some banks even adjusted their savings account rates more than once in a week. When you opened a savings account, you would have thought that the rate would have some kind of stability. Maybe that’s the case in the past, but definitely not now.

Amid all these uncertainties, it would be nice to have some kind of assurance.

Well, there’s actually some guarantee available for a banking product, from Ally Bank and it’s for its CD account.

Since I don’t actively bank with Ally Bank any more (I still have some in the Interest Checking Account), I don’t go to check my account as often as I do with other banks. When I did go to Ally Bank website the other day, I notice something that I didn’t see before, as far as I can remember.

Ally Bank Rate Guarantee

It’s Ally Bank’s Ten-Day Best Rate Guarantee, which guarantees that you will get the best rate available for the 10 days after a CD account is opened. Basically, what it says is that if you open a CD account with Ally Bank and if there’s any rate adjustment within the first 10 days, you will get the best rate during this period of time, regardless whether the rate is going up or down. Since there will be some delays between opening an account and having it funded no matter which funding method is used (by check, by ACH, or by wire), it’s possible that the rate may change while the account is waiting for the initial fund to come in. With this guarantee, you are assured that your CD account won’t be affected should the rate goes down shortly after the account is opened.

While the offer looks good on surface, I am not very impressed by it because, from my experience, Ally Bank made more frequent adjustments to its Online Savings account than CD account. In fact, one of the reason that I decided not to use Ally Bank is that I just can’t tolerate the Savings account rate being adjust every week. To me, I will be happier if Ally Bank not only offers a competitive rate, but also keeps the rate stable than its competitors, not a 10-day guarantee.

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