Update 2-07/23: Tomorrow (07/24) the Ally no-penalty CD and online savings will remain at 1.9% and 1.85% respectively. The regular 1 year CD will go down from 2.05% to 2%.
Update-07/16: I have been informed that the Ally bank rates will decrease tomorrow (07/17) as follows: The No Penalty CD will go down from 2% to 1.9%, the 1 year CD will go down from 2.1% to 2.05%, and the online savings will go down from 1.95% to 1.85%. Open a CD right now to lock in the higher rates!!!
Originally posted on 07/15:
Ally Bank has a unique no-penalty 9 month CD offering a 2.00% APY.
Normally you must leave the money in a CD for the entire predetermined term. With the no-penalty CD you can withdraw your funds at any time from the CD and you will get back your entire deposit with all accrued interest without any penalty! That way if rates go up in the near-term or if you have a need for the funds you can earn a great rate and not worry about locking up your money. The 2% rate is guaranteed for the 9 month term.
The advantage of a no-penalty CD over a savings or money market account is that the rate of the money market account can be dropped at any time, whereas the rate on the CD cannot be lowered, and if it goes up you can always enroll in the higher no-penalty CD!
They also offer a traditional 12 month CD earning 2.10% APY and an online savings account earning 1.95% APY.
Ally compounds interest daily and all deposits are FDIC insured up to $250,000 per depositor.