It’s Friday, which has become the day when Ally Bank announces new rates. I’m not sure why Ally Bank has become the poster boy for naughty banks giving us interest rates that are “too high”, but they are. From this CNN Money article:
Last month, the FDIC issued rules capping the rates troubled banks can pay on deposits — an edict that didn’t apply to Ally Bank because it is well capitalized.
The letter requires Ally to report to the agency on its deposit rates and how they compare with other banks whenever it seeks to tap funds under a federal debt guarantee program.
So they are confirmed to be well-capitalized, but they are still under scrutiny. It is better to be under-capitalized and offer horrible interest rates? Either way, another round of slight drops this week:
Ally Bank rate updates
The 12-month CD is now 2.30% APY as of 6/19/09. The Online Savings Account is now 2.00% APY. There are no monthly fees and no minimum balances for any of these products.
The best bet still seems to be their No-Penalty 9-month CD at 2.15% APY, which remains a top rate for 9-month CDs despite the slight drop from 2.30% yesterday. Why not lock in a good yield for now, and you can still get out with no fees if rates rise.
Read more about Ally Bank vs. FDIC: 9-Month No-Penalty CD 2.15% APY…
