If you have money in a bank certificate of deposit (CD), you should be aware that most of them will renew automatically for the same term length upon maturity. That means if you don’t specifically tell them otherwise, your 5-year CD will roll over for another 5 years if you’re caught snoozing that week. Different banks set different grace periods and renewal instructions; the best ones in my opinion let you set the decision ahead of time (i.e. Pentagon Federal Credit Union).
I bring this up again because I have a few Ally Bank CDs coming up for renewal. I’ll miss that old 3.09% APY, ha. Here’s a quick review of the process for other Ally Bank account holders. First, here is the official policy taken from their website:
At maturity your CD will automatically renew, and you’ll have a 10-day grace period to make any of the following changes:
Change the term
Make additional deposits
Close the CD
Interest will accrue during the grace period; however, that interest will not be paid if the funds are withdrawn during the grace period.
Call us at 1-877-247-ALLY (2559) before your maturity date or before the end of your grace period if you would like to make changes to your CD. If you don’t contact us by the end of the 10-day grace period, we’ll automatically renew your CD for the same term.
- Roughly 30 days before maturity. If you have chosen paperless documents like I have, you’ll receive a somewhat vague e-mail from Ally Bank with the subject line “You have new correspondence in online banking.” This is actually your official “Certificate of Deposit Maturity Notice”, so don’t overlook it! I’m assuming if you chose the paper option you’ll get the letter via snail mail.
- Between 30 days before maturity to 10 days after maturity. You must call them at 1-877-247-ALLY (2559) to tell them if you want anything besides an auto-renewal of the same term at current market rates (Ally’s Ten Day Best Rate Guarantee applies). No e-mail. No website option. No online message. No smoke signals.
- When you call them. They’ll ask you a bunch of identity verification questions, much more than other phone calls. They’ll tell you about the Loyalty Bonus where you’ll get an extra 0.05% APY if you renew your CD (as of 3/9/15). If you want to make a withdrawal or other changes, they’ll ask you why. Nothing high pressure, but they’ll softly encourage you to renew.
- I decided to withdraw my funds this time, but I’ll probably renew some of my other CDs that a maturing soon into a CD ladder. If you have multiple CDs like I do (for minimizing penalties in case of early redemption), they will have to read you the details and disclosures for each one.
If you have to call Ally Bank as well, remember that the phone wait time is shown live on the top of their main website (I only call if it is around a minute). The call itself lasted 15 minutes.
(Also see: Ally Bank Savings Account Review. Ally is my primary banking hub.)