Ally Bank’s Raise Your Rate CD: Protection Against Increasing Interest Rates

Bank deposits could experience an interest rate rise soon from their historical lows; I personally have been sitting on cash, or investing in lower time commitment (3 and 6 month CD’s with lower yielding certificates, waiting for that possibility.

If this sounds familiar to you, a “raise your rate” CD might be just the thing for you. Ally Bank offers one such CD called the Ally Bank Raise Your Rate CD that may help – I wasn’t successful finding any similar options elsewhere though so please share in the comments if any such options become available elsewhere!

What Is a “Rising Rate CD”? Ally Raise Your Rate CD A rising rate CD allows you to raise the interest rate from what it is when making your deposit to higher interest rates at any later point during its lifespan. CDs can be an excellent way to generate a solid return on your savings at a higher interest rate than what can be found in savings accounts, yet are confident that interest rates will eventually go up during its term. We are in such an ideal environment right now: with inflation likely coming due to debt levels rising ever higher in America, why not earn a decent yield now before earning even greater returns later?

Ally Bank Raise Your Rate CD
I have always been impressed with what Ally Bank offers its customers; their products truly put customers’ best interests first. One such product is the Ally Raise Your Rate CD – an attractive 2- or 4-year term CD offering some fantastic features that put it ahead of its class:

Do your banking with zero dollars: no minimum is necessary to open an account with us.
Ten Day Best Rate Guarantee – I love that Ally offers no monthly or maintenance fees for their CD, yet still offers their amazing Ten Day Best Rate Guarantee feature! Rather than taking whatever interest rate is in effect on the day that they fund a CD (as is often done in banks), Ally applies its Best Rate Guarantee automatically within ten days. When your Ally CD renews automatically you get access to this best interest rate offered during those ten days!
Daily compound interest for maximum earnings. (Most banks compound on a monthly or quarterly basis.). FDIC insured.
But the key feature that made me consider reviewing this product for 20somethingfinance was the option to ‘raise your rate’ on the CD. At any point during its two or four year terms (or twice within each term), if you would like to increase your initial interest yield at any point (with no fees attached!), simply call Ally and request they raise it – it’s that simple! No excuse now to leave cash sitting idle because rates might rise!