Just bought a CD from Ally

[disneysteve]

I know there are some better rates out there but I just bought a 12-month CD from Ally. It was probably the easiest financial transaction I've ever made. I think the entire process took under 3 minutes. I logged into my account, selected CDs, chose 12 months, punched in the dollar amount, and authorized the transfer from my Ally savings account. That was it. They're paying 2.65%. Not the best there is but 0.75% higher than the savings account is paying so I'm okay with that. And it doesn't require me keeping track of yet another account or logging into another site. I'm willing to give up a little interest for that convenience.

I couldn't help but notice that shorter terms, like 6 or 9 months, are actually paying a fair amount less than the plain savings account. Why would anyone do that unless they expected interest rates to fall, which certainly isn't likely anytime soon?

[kork13]

I've got a $5k I-Bond purchase about to go through this week, which will earn 2.83% for now.

Definitely agree about keeping money all in one place. As is, I've got 5 financial institutions I use (not including credit cards): primary checking & insurance (USAA), primary savings (Ally), investments (Vanguard), I-Bonds (Treasury Direct), and mortgage (Pentagon FCU). As to that, credit cards with 3 Citi, AmEx, & Discover... I hate having them all, and will probably trim the fat at some point, but at least I'm able to use USAA as a clearinghouse to monitor & control them all in one place. It would be untenable otherwise.

As for the lower rate short-term CDs, I've always wondered the same thing. If I can get a higher rate from the same bank without the restrictions, why on Earth would I subject myself to a 6-month CD?

[Joan.of.the.Arch]

Click! I Just did it myself with Capital One. I'll get 3.1%. This is my first ever C.D. Funny how that makes me a little nervous even though the conservative security is one reason I'm choosing a C.D.

[LivingAlmostLarge]

I bought an i bond as well. $10k for DH and $10k for me. In May 2019 I am going to lock in another $5k each and next november potentially i'll lock in $5k more each.

[MooseBucks]

I noticed the same thing about the shorter terms. No idea why people would open one at a lower rate but I guess some people do?

[MooseBucks]

I've got a $5k I-Bond purchase about to go through this week, which will earn 2.83% for now.

Definitely agree about keeping money all in one place. As is, I've got 5 financial institutions I use (not including credit cards): primary checking & insurance (USAA), primary savings (Ally), investments (Vanguard), I-Bonds (Treasury Direct), and mortgage (Pentagon FCU). As to that, credit cards with 3 Citi, AmEx, & Discover... I hate having them all, and will probably trim the fat at some point, but at least I'm able to use USAA as a clearinghouse to monitor & control them all in one place. It would be untenable otherwise.

As for the lower rate short-term CDs, I've always wondered the same thing. If I can get a higher rate from the same bank without the restrictions, why on Earth would I subject myself to a 6-month CD?

Not sure about USAA’s rates but Pentagon FCU has the best cd rates I’ve seen.

[kork13]

Not sure about USAA’s rates but Pentagon FCU has the best cd rates I’ve seen.

Yeah, USAA rates are generally pretty poor, but their systems & customer service are great, so I use them as my primary checking account & as I said, a clearing house for everything, but otherwise try to minimize the cash I keep there.

PenFed & Navy Fed CU's both compete with eachother, & both tend to have great CD rates.

[LivingAlmostLarge]

My i bonds went through