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Ally Bank’s No Penalty CD Rate Arbitrage
Posted By Jim On 06/22/2009 @ 10:08 am In Banking | 12 Comments
If you look at Ally Bank’s current rates , there appears to be a discrepancy in the way they’ve structured their rates. I tweeted about this last week  and it appears the difference in rates has persisted through a recent rate drop, making it doubly curious. Let me explain what I mean.
As of today (June 22, 2009), here are the current rates of several of their products:
Two things surprise me:
This morning I transferred all my funds from my Ally Bank online savings account into the 9-month no-penalty CD to get that extra 0.15% APY. If the two accounts weren’t at the same bank, I wouldn’t have done it because the transfer time would’ve cost me interest. However, anytime someone is willing to give me a $2 bill in return for a $1, I take it.
Is there something I’m missing?
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 tweeted about this last week: http://twitter.com/bargainr/statuses/2210435700
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