A new survey from Ally Bank reports that 77% of respondents – all U.S. bank customers – say they are cutting back on spending and looking to increase their bank deposits.
Almost half of all survey respondents (47%) say they have shopped around for better certificate of deposit rates this year.
Yes, it’s all about supply and demand. Bank customers have certainly supplied the demand, but banks have been slow on the supply side of the equation.
At least Ally Bank – the survey sponsor – is getting off the dime. The bank is offering a one-year CD that boasts a 2% interest rate. The bank is also offering a nine-month CD that pays a rate of 1.85%.
Both are pretty good deals, considering that the one-year CD rate, as measured by the BankingMyWay National CD Rate tracker, is only 1.13%.
What do you need to do to get the Ally deal? Not much, really. There are no minimum account deposits, no monthly fees and interest is compounded daily for “maximum earnings,” as Ally puts it.Find out more at the Ally Web site.
Ally is also offering a 1.85% APY on a nine-month CD, which is a highly competitive rate.
Bank Savings Accounts
Discover Bank (Stock Quote: DFS) says it has a bank savings account deal that is – and we quote – “five times the national average” for bank savings accounts.
Well, it turns out they can back it up. Discover’s new online savings account is now paying 2.0% interest – all you need is a minimum opening deposit of $500.
Once you plant the first $500 into the savings account, there won’t be any more minimum balance triggers. You’ll earn one interest rate on all balances, you’ll get interest that is compounded daily, and there are no low- or no-activity fees.
This is directly from the bank’s Web site: “The APY for the Online Savings Account as of Aug. 25 is more than five times the national average APY for interest-bearing savings accounts with balances of $500 as reported by Informa Research Services, Inc as of Aug. 18.”