Ally Bank Online Savings Account Opened
Well, I finally pulled the trigger to open an Ally Bank Online Savings Account and a 9-month No Penalty CD Account, after mulling the idea for weeks but only watching the rates slipping further and further. Had I opened the account when I first discussed Ally Bank’s products at the beginning of the month, I could have enjoyed a much higher rate than what it offers now. Ally bank has cut rates twice in the past few weeks, bringing down the yield of both Online Savings Account and 9-month CD account.
The reason for me to decide to get an account now is that, despite recent cuts (which I suspected was done under the pressure from the Fed’s new policy), the rate is still quite attractive. After being disappointed by IGoBanking, I need a bank with good rates to keep my money. Ally Bank came up because of their No Penalty CD, which I am really interested in, not really because of their Online Savings Account that offers the same yield as Dollar Savings Direct does. Also, since Ally Bank’s predecessor GMAC Bank has a pretty good tracking record of providing higher rate, I am hoping that when the economic environment improves, the bank can be even more competitive than it is now.
Anyway, opening an account with Ally Bank is rather straightforward, taking only a few minutes to complete. In addition to the personal information that’s required by every bank when opening an account, I had the option to get both the online savings account and CD account with one process. I am not sure if other banks allow you to do that, or you have to open multiple accounts one-by-one, but I think it saves time. I can also set up an external account link during the application to make both the initial deposit and additional funds in the future (there are other ways to fund the account, but ACH is the most convenient choice).
Since Ally Bank uses trial deposits to verify account ownership, it will take a couple of days before the account is fully functional. Now I just hope Ally Bank won’t reduce the rate of the No Penalty CD before I can fund the account and lock in the rate
Update: Check out these current high-yield savings account offers (rate updated on March 1, 2010):
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