At Ally Bank, we’re committed to banking in your best interest, including offering consistently competitive rates. As part of that commitment, we’re introducing balance tiers for all CDs, Online Savings, and Money Market accounts, including IRAs. These tiers launched on November 7, 2015.
Below you’ll find answers to some of the questions you may have about our new balance tiers and how the change will affect you.
How is an account with balance tiers different?
An account with a balance tier structure may provide a different interest rate based on that account’s balance. If you have multiple accounts, a tier is assigned to each account for that individual account’s balance, not the sum of all accounts.
What is the new balance tier structure?
We currently offer three account balance tiers, which are now in effect for all CDs, Online Savings, and Money Market accounts (including IRAs). The balance tiers are as follows:
- Less than $5,000
- Between $5,000 and $24,999
- Over $25,000
When will the rates change and what will they be?
While the balance tier structure has now been implemented, rates may remain the same for a while across all tiers. Ally’s brand promise includes offering consistently competitive rates for all of our customers, regardless of tier. As the factors that determine our rates change, including the conditions in the marketplace and the competitive landscape, you may begin to see a change in rates.
My current account balance is not in the highest tier. What does this mean for me?
Adding the ability to tier rates doesn’t change our commitment to offering consistently competitive rates to all of our customers, no matter which tier your account falls within. Our new balance tiers are intended to provide us with the flexibility to potentially offer customers a way to earn a different rate as their balances and relationships with us grow—if not now, then in the future.
How will this affect my Online Savings or Money Market account?
If you have an Ally Online Savings or Money Market Account, your balance tier is decided by each account’s end-of-day balance. As such, your interest rate is variable and determined by your current balance tier.
How will this affect my CD?
If you currently have a CD, your existing rate won’t change as a result of the balance tiers. When your CD comes up for renewal, your rate will then be determined by the balance rolled over and your term and tier at the end of the 10-Day Grace Period. For CDs opened on or after November 7, 2015, the interest rate will be determined by your opening deposit and the current rate for that term and tier.
As always, our Ten Day Best Rate Guarantee, which gives the best rate we offer for your CD during the first ten days starting with your open date if you fund your CD within that time, will apply.
For more information on the new balance tiers or any Ally Bank products, please visit Ally.com.