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expired Posted by Cdcarver • Feb 18, 2023
expired Posted by Cdcarver • Feb 18, 2023

Ally Bank: 18-Month High Yield CD

(no minimum deposit)

5% APY

341 Comments 207,439 Views
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Deal Details
Ally Bank is offering a 18-Month High Yield Certificate of Deposit at 5% APY with no minimum deposit.

Thanks to Community Member Cdcarver for posting this deal.

Editor's Notes

Written by RevOne | Staff
  • About this deal:
    • No minimum deposit to open
    • Interest compounded daily
    • Your deposits are insured by the FDIC up to the maximum allowed by law
    • Early withdrawal penalty will apply. APY is fixed for the term of the CD and is subject to change upon renewal.
  • Please refer to the forum thread for additional details & discussion.

Original Post

Written by Cdcarver
Community Notes
About the Poster
Deal Details
Community Notes
About the Poster
Ally Bank is offering a 18-Month High Yield Certificate of Deposit at 5% APY with no minimum deposit.

Thanks to Community Member Cdcarver for posting this deal.

Editor's Notes

Written by RevOne | Staff
  • About this deal:
    • No minimum deposit to open
    • Interest compounded daily
    • Your deposits are insured by the FDIC up to the maximum allowed by law
    • Early withdrawal penalty will apply. APY is fixed for the term of the CD and is subject to change upon renewal.
  • Please refer to the forum thread for additional details & discussion.

Original Post

Written by Cdcarver

Community Voting

Deal Score
+116
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Top Comments

Bad deal compared to buying treasuries where u don't pay state or local tax on interest
You can find the most recent auction price for all kinds of treasury at treasurydirect.gov:
https://treasurydirect.gov/auctio...a-results/
The best way to buy treasury (bills, notes, bonds, tips, etc) IMO is through a brokerage instead of treasurydirect.gov. You can easily sell if you need the money before maturity. At treasurydirect, you have to transfer them to a brokerage to sell.
Only down side of a brokerage is you have to buy at least $1000 each time. Some has higher limit like $2000 or $5000. Treasurydirect can buy just $100. I use fidelity. You can also buy at Vanguard, Charles Schwab.
One last thing, make sure you buy the "new issues" and there is no fees. When you sell before maturity, you sell on open market which means you could lose money if the current price for your treasury is low, unlike the regular CD "lose 3 months interest".
Currently on Schwab:

US Treasury 6m 5.02%
US Treasury 9m 5.01%
US Treasury 12m 5.03%
US Treasury 18m 4.94%

340 Comments

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Feb 18, 2023
3,203 Posts
Joined Feb 2004
Feb 18, 2023
mnsweeps
Feb 18, 2023
3,203 Posts

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Bad deal compared to buying treasuries where u don't pay state or local tax on interest
10
2
14
Feb 18, 2023
2,911 Posts
Joined Oct 2007

This comment has been rated as unhelpful by Slickdeals users.

Feb 18, 2023
79 Posts
Joined Nov 2012
Feb 18, 2023
hyprninja
Feb 18, 2023
79 Posts

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Quote from KingUltra :
No point to bring up Treasuries ( with their 10K limit) in every CD thread.
We know that everyone on SD is rolling in cash, and don't qualify for the Tesla Tax rebate.
I-Bonds have a 10k limit but treasuries have no such limit.
4
2
Feb 18, 2023
605 Posts
Joined Apr 2011
Feb 18, 2023
minhquan2106
Feb 18, 2023
605 Posts
30 years tbond rate is 3.625%. Am I missing anything? https://www.treasurydirect.gov/ma...ury-bonds/
1
11
Feb 18, 2023
3,512 Posts
Joined Dec 2007
Feb 18, 2023
iahawks550
Feb 18, 2023
3,512 Posts
Quote from KingUltra :
No point to bring up Treasuries ( with their 10K limit) in every CD thread.
There are more other treasury investments other than I-bonds. Without any limit. and yes, the poster is correct that it's most likely a better investment.
3
Feb 18, 2023
156 Posts
Joined Feb 2019
Feb 18, 2023
nigori
Feb 18, 2023
156 Posts
Quote from mnsweeps :
Bad deal compared to buying treasuries where u don't pay state or local tax on interest
can you elaborate on this and link something for us?
1
Feb 18, 2023
135 Posts
Joined Aug 2011
Feb 18, 2023
jc122
Feb 18, 2023
135 Posts
Quote from minhquan2106 :
30 years tbond rate is 3.625%. Am I missing anything? https://www.treasurydirect.gov/ma...ury-bonds/
Yield curve is inverted
1

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Feb 18, 2023
637 Posts
Joined Nov 2010
Feb 18, 2023
zjs2k
Feb 18, 2023
637 Posts

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Quote from minhquan2106 :
30 years tbond rate is 3.625%. Am I missing anything? https://www.treasurydirect.gov/ma...ury-bonds/ [treasurydirect.gov]
There are other kinds of treasury. The current best deals are 4, 6, 12 month bills, all close or above 5%. See the current market price at tradingeconomics:
https://tradingeconomics.com/unit...bond-yield
3
1
Feb 18, 2023
637 Posts
Joined Nov 2010
Feb 18, 2023
zjs2k
Feb 18, 2023
637 Posts

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Quote from nigori :
can you elaborate on this and link something for us?
You can find the most recent auction price for all kinds of treasury at treasurydirect.gov:
https://treasurydirect.gov/auctio...a-results/
The best way to buy treasury (bills, notes, bonds, tips, etc) IMO is through a brokerage instead of treasurydirect.gov. You can easily sell if you need the money before maturity. At treasurydirect, you have to transfer them to a brokerage to sell.
Only down side of a brokerage is you have to buy at least $1000 each time. Some has higher limit like $2000 or $5000. Treasurydirect can buy just $100. I use fidelity. You can also buy at Vanguard, Charles Schwab.
One last thing, make sure you buy the "new issues" and there is no fees. When you sell before maturity, you sell on open market which means you could lose money if the current price for your treasury is low, unlike the regular CD "lose 3 months interest".
8
1
Feb 18, 2023
363 Posts
Joined Feb 2007
Feb 18, 2023
avenger386
Feb 18, 2023
363 Posts
Quote from hyprninja :
I-Bonds have a 10k limit but treasuries have no such limit.
They only limit I know of is at $10 million for new issues per transaction. (@Treasury direct)

... I wish that was a problem I was having.
6
1
Feb 18, 2023
26 Posts
Joined Sep 2006
Feb 18, 2023
brahmabullnei
Feb 18, 2023
26 Posts
Quote from minhquan2106 :
30 years tbond rate is 3.625%. Am I missing anything? https://www.treasurydirect.gov/ma...ury-bonds/
26 weeks T-Bill this past Monday was 5.030%
It is likely it'll be higher because Fed will raise rate higher to combat inflation.
1
Feb 18, 2023
4 Posts
Joined Aug 2022
Feb 18, 2023
IndigoSnow1339
Feb 18, 2023
4 Posts

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Currently on Schwab:
  • US Treasury 6m 5.02%
  • US Treasury 9m 5.01%
  • US Treasury 12m 5.03%
  • US Treasury 18m 4.94%
6
1
Feb 18, 2023
161 Posts
Joined Dec 2018
Feb 18, 2023
Dac-BietV
Feb 18, 2023
161 Posts

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Quote from jc122 :
Yield curve is inverted
Are you saying recession is near?
2
5
Feb 18, 2023
468 Posts
Joined Apr 2010
Feb 18, 2023
smok3d
Feb 18, 2023
468 Posts
Quote from zjs2k :
You can find the most recent auction price for all kinds of treasury at treasurydirect.gov:
https://treasurydirect.gov/auctio...a-results/
The best way to buy treasury (bills, notes, bonds, tips, etc) IMO is through a brokerage instead of treasurydirect.gov. You can easily sell if you need the money before maturity. At treasurydirect, you have to transfer them to a brokerage to sell.
Only down side of a brokerage is you have to buy at least $1000 each time. Some has higher limit like $2000 or $5000. Treasurydirect can buy just $100. I use fidelity. You can also buy at Vanguard, Charles Schwab.
One last thing, make sure you buy the "new issues" and there is no fees. When you sell before maturity, you sell on open market which means you could lose money if the current price for your treasury is low, unlike the regular CD "lose 3 months interest".
How do I buy on fidelity
2

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Feb 18, 2023
2,880 Posts
Joined Feb 2009
Feb 18, 2023
AGpennypacker
Feb 18, 2023
2,880 Posts

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I bonds would need to be kept longer to realize a gain, but a different deal than what's comparable to these.

Ally invest will let you buy TBills at auction prices.

Most of my "cash" is in 1 month Tbills, tiered. Treasury direct is an archaic website, but makes scheduled purchases easy. I also use my brokerage.

An 12 month Tbill is what this compares to better.

I'm still buying up to the limit in Ibonds for now, too.
Last edited by AGpennypacker February 18, 2023 at 09:01 AM.
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