Ally Financial Inc. Bank Account Or Service Complaint

Ally Financial Inc. Bank account or service department,

(CD) Certificate of deposit Account opening, closing, or management New York

Ally Bank currently has - Raise Your Rate CD products - a - CD that allows you to raise your rate once during the life of the product and a - CD that allows you to raise the - twice during the life of the product. Currently, the initial rates for the - and - -yr are - and -, respectively. The reason consumers went into these products was so they did n't get stuck when interest rates started to rise - just as the product was marketed by Ally. Now that interest rates have started to increase neither of these rates has budged. Ally is not being competitive with these rates. Per -, the rate they offer for a - is - best and the rate for their - is - best among banks. What 's most telling is that if I wanted to put $25000.00 in a - with Ally today they 'd pay me a rate of - for -, but only - for -. From a bank 's perspective, I would think that 's counter-intuitive, but it reflects their rates as of today. Even though the - bond market has a normal yield curve, Ally 's in inverted. I believe they wo n't move the rate on the - and - because customers would exercise their option to increase the rate and Ally does n't want to pay up. They should eliminate this deceptive product. If consumers knew that they never intended, in good faith, to budge on these rates, they would have opted to go for a straight CD that paid a little more, rather than paying for the Raise Your - - option - an option that appears worthless. Take their rates today on the - straight CD, which is -. I get - basis points more for a - shorter term CD than the - CD paying -. If past is prologue, I would n't expect Ally to move the - rate. It does n't appear that they are under any obligation to do so, yet the product exists.