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Double-Check Your Ally CDs

Written by Nickel - 7 Comments

Bank Deal: Earn 1.00% APY on an FDIC-insured savings account at Barclays.

Do you own any Ally Bank CDs? If so, here’s a bit of homework for this weekend…

Apparently they had a system glitch of some sort that caused them not to credit interest earned on CDs in 2011 to some customers. There have apparently been a number of reports of this, and they are dealing with it on a case-by-case basis.

In other words, if you’re affected, it might not get fixed if you don’t spot the error and complain. For the record, I’ve double-checked our accounts and all is well.

Source: DepositAccounts via The Finance Buff

Published on February 10th, 2012 - 7 Comments
Filed under: Banking

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Comments (scroll down to add your own):

  1. Hi,

    How did you check all CDs? I have 30 CDs and they deposit interest at the year end so how will i come to know whether they have missed any months interest


    Comment by Anonymous — Feb 10th 2012 @ 2:43 pm
  2. You may need to check them individually. I have a bunch, too, but the majority are “parallel” CDs that I set up for the same term and amount on the same date. Since they all have identical values, I only needed to check one to be sure that the value reflected the 2011 interest. It helps that all payments are issued on 12/31, though you have to manually enter a date range to view that since it’s more than 30 days ago.

    Comment by Nickel — Feb 10th 2012 @ 3:29 pm
  3. “It helps that all payments are issued on 12/31” I guess you have long term CDs? We have 6 and 11 month CDs, and interest payments are issued at the CD maturity, so it’s going to depend on when you first purchased the CD. Ours are all around mid-month (the 8-13th).

    Anyway, I checked all 8 of our CDs and don’t see anything missing.

    Comment by Anonymous — Feb 10th 2012 @ 6:06 pm
  4. I still haven’t received my 1099s from Ally yet, guess I need to call their customer service line (benefit of the doubt, it just got lost in the mail). But not paying CD dividends, that is messed up. Last year I had Chase not credit one of my automatic payday deposits into the HSA account. Chase conducted an investigation and realized the same was true for everyone in my company (so fixed the problem for everyone).

    I expect no less from Ally. If there is a glitch, they need to find it and fix all accounts affected. If there were a glitch that was not in their favor, do you think they would wait for every affected (honest) customer to call?

    Comment by Anonymous — Feb 11th 2012 @ 8:19 am
  5. Courtney: Yes, if a CD matured during the year, the final interest would have been paid out at that point, but I believe that for ongoing CDs, the interest is posted on 12/31 — or at least that’s the way it works for us.

    Comment by Nickel — Feb 11th 2012 @ 10:19 am
  6. BG: I agree, and it’s important to keep in mind that much of the info surrounding this is rumor and innuendo. Apparently some people have had problems, and at least one says they have been told by an Ally service that it will be handled on a case-by-case basis. It’s quite possible that they’ll go through and systematically correct any problems. But it’s better to be safe than sorry.

    Comment by Nickel — Feb 11th 2012 @ 10:20 am
  7. Nickel – that’s interesting, I would have assumed that it still would have been paid out at the annual anniversary rather than a fixed date. Seems like it would slightly affect the compounding for the first and last years? Or would it balance out in the end?

    Comment by Anonymous — Feb 11th 2012 @ 12:51 pm

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