Ally usually sits around the top of the best CD rates available nationally, but ever since iGObanking took the top spot for the 2 Year CD at 2.25%, no other financial institution has come close to beating their offer. Ally’s 2 Year CD rate sits at 1.60%, which is still a decent rate and is only 4th place behind Bank of Internet at 1.72% and Discover Bank at 1.65%.
Ally is one of the more stable financial institutions with a 4 of 5 star rating from Bankrate and is also FDIC insured. Ally offers a one time rate increase if they ever increase their rates on any of their certificate of deposits. Their 2 year CD rate of 1.60% may be a good deal because they have no minimum deposit and if they increase their rates in the next few months you will also be able to increase your rate. With their one time rate increase, if CD rates increase in 2011, you will have the option of capturing the better rate without starting a new 2 year term.
Ally does have an early withdrawal penalty for any withdrawals before the maturity date. The fee is equal to 60 days interest.
Be sure to compare how Ally’s CD rates stack up against other banks and financial institutions.