Ally Bank

It seems that CD renewal bonuses are all the rage these days! Just the other day, I received an email from Ally Bank now that one of my CDs was nearing its expiration. Ally Bank will automatically renew your CDs unless you tell them otherwise (you have a ten day grace period from the renewal date to change your mind) and they have sweetened the offer by bumping up the rate by 0.25% from prevailing rates.

Here’s the email:

    Dear Jim,

    You have reached an important milestone, as the CDs listed below are maturing. You don’t have to do a thing if you’d like to renew. We’ll renew the CD for you on its maturity date and also give you our Ten Day Best Rate Guarantee. This means you’ll get the best rate we offer within ten days, starting with your maturity date.

    Plus we’ll add an extra .25% to your rate.

    We at Ally Bank would like to thank you for your continued loyalty. That’s why you’ll also get an additional .25% added to your rate, all for the full term of each renewed CD. You’ll see your .25% rate increase after the Ten Day Best Rate Guarantee period. It’s just one more way we make sure your money is working hard and earning more. If you choose not to renew, you can also roll over part or all of your balance into another term CD and get the same guarantee plus an extra .25%.

Ally Bank already has some of the best CD rates, so this 0.25% APY renewal bonus makes it more likely I’ll be putting a CD ladder there.

This type of renewal bonus is not unprecedented. A few years ago ING Direct offered a 0.10% bonus and just recently Ally Bank offered a 0.50% bonus.

When renewing your CD, you can change the deposit amount and the type of CD. You aren’t required to keep the same type of CD or even the balance amount. If you haven’t setup a CD ladder yet, going with a bank that offers a renewal bonus, especially one with above average rates; is a good way to go. Ally Bank is one of the few online banks that offers a 3, 6, and 9 month CD, which can make the creation of your ladder much easier.