Friday, July 7, 2017

New CD Strategy

I recently found a new strategy for getting a 1.5% APY return on my savings. This plan is not complicated. I opened an 11-month No Penalty CD at Ally Bank with a minimum deposit of $25,000.

I have written about Ally Bank before, and I have been their customer for years. I have an Online Savings account that currently pays 1.15% APY. This is a decent return for a day-to-day account.

I have also had 2- and 4-year Raise Your Rate CDs that both offer 1.5% APY. This 11-month CD matches the yield on the longer term CDs, but it doesn't have an early withdrawal penalty.

The main risk of a long-term CDs is the chance that interest rates will rise and you’re committed to the lower rate until the CD matures. But with no early withdrawal penalty, if rates rise there is no risk. You can withdraw the money with no penalty, and then put it back into a new CD at the higher interest rate.

Disclaimer: The example provided here is for illustrative purposes only. I am not providing tax or investment advice.

PFS

3 comments:

Super Saver said...

1.5%...nice rate. Miss the days of 5%.

Unknown said...

I found the blog some what interesting in its content wise and easier to understand what they had said. I love if you publish the blogs often.
Payday Loans
Payday Loans in Alabama
Payday Loans in Mississipi
Payday Loans in South Carolina

Unknown said...

Thanks for spending your valuable time in delivering the most valuable content here.I loved the way you write and suggest my friends too for getting aware of your blogs.
Thanks,
Quik Pawn Shop
Get Cash - Pawn
Get Cash - Sell
Get Cash - Borrow/loan
Check cashing
Green Dot card