Investing Blog Roundup: Ally Bank Changes CD Terms

Author and financial planner Allan Roth has often written about using CDs instead of bonds or bond funds for the fixed income part of a portfolio — with the primary idea being that if you shop around for rates you can get a higher overall return without any additional risk because of the FDIC guarantee.

Over the last few years, Ally Bank has been one of the best places to implement such a strategy because they typically offer competitive rates, and they have very low penalties for cashing out a CD early. (So, for example, you could throw everything into 5-year CDs even if there was a decent chance you’d need the money before the CDs matured.)

A very astute observer over at the Bogleheads forum, however, recently noticed a change in Ally’s CD terms. The Finance Buff covered the changes and the impact in an article this week:

• Ally Bank Now Requires Consent Before Allowing Early Withdrawal from a CD from The Finance Buff

Investing Articles

• Do We Live in the Golden Age of Investing? from Matthew Amster-Burton
• Mutual Fund Shares Classes in Your 401(k) from Roger Wohlner for US News
• Rethinking Bonds in Taxable from The White Coat Investor
• Gold: Do We Hear 36,000? from Jason Zweig for WSJ
• Do You Really Need a Financial Advisor? from Darrow Kirkpatrick
• Investment Principle Matters to Principal from Rick Ferri
• Plan Participants Don’t Understand Risks and Allocations from Robert Steyer
• How to Manage 30-Something Retirement Worry from Jason Hull for US News

Other Money-Related Articles

• Identity Theft: What to Do If Your Data is Compromised from Financial Ramblings
• Can I Switch to My Spouse’s Benefit at FRA? from Financial Ducks in a Row
• Should You Accept a Pension Buyout? from Steve Vernon
• How Retirement Expectations Differ from Reality from Emily Brandon for US News
• How to Appeal Denied Medicare Claims from Anne Tergesesn for WSJ

Thanks for reading!