I also opened up a couple of Ally Bank 5-year CDs earlier this week as one of the places for my emergency fund, following my previous positive analysis. It went pretty smoothly, here are the steps of the application:
Step 1 select accounts – Choose the account type and term, as well as opening deposit amount. You really can open with as little as $1.
Step 2 personal information – Enter and verify your personal information and identity based on information from your credit report.
Step 3 opening deposit – Either mail in a check or provide account information (routing and account numbers) for electronic funding.
Step 4 account options – Choose how you would like your interest payments deposited (monthly, quarterly, annually) for your CD. Also choose the location (mailed check, back into CD, another Ally account, or external bank account).
Step 5 congratulations – You will have to verify two small test deposits to set up a new bank account. A welcome kit with signature cards will be mailed to you. These must be mailed back in order to avoid backup withholding of interest to the IRS. However, it does not appear to affect the actual funding of the CD.
By Jonathan Ping | Banking | 4/2/10, 1:56am