Together with the introduction of the new Ally Bank (formerly GMAC Bank) is the launch of a new CD that doesn’t charge a fee for early withdrawal, aptly called the No Penalty Certificate of Deposit.Ally Bank’s new product offering is being touted as a CD that doesn’t let you “jump through hoops” for an early withdrawal. The salient features of the No Penalty CD are:
- It is FDIC-insured.
- A fixed CD rate for a fixed period of time. Currently, the No-Penalty CD is available for a 9-month term at 2.50% APY.
- No minimum balance required. Open with $0.
- Interest compounded daily for maximized earnings.
- Zero penalty for early withdrawal. You can get your full deposit plus interest earned as long as you make the withdrawal six days after funding the account.
- Automatic renewal upon maturity.
- Interest earned can be withdrawn as income as long as you inform the bank before the maturity date or within 10 days after.
Ally Bank also makes it easy for you to withdraw your money. The bank website’s FAQ states that pre-termination instructions can be received by phone, secure email or regular mail. For more information on this, check out the Ally Bank website.
