They find cheap foreclosures in good neighborhoods and update and modernize them. What she liked the best is her money is secured with a house that is worth 2x what she lent and the cashflow and growth from the money seems a no brainer.

We were a little on the fence too until we started seeing the properties they fixed up and turned out to be a group of hard working guys who liked what they did and gave families a place to call home when the bank wouldn’t loan. A real win win for the community.

I think they have a website…I’ll look it up if any of you are interested.

Merry Christmas!

I already have a new savings account with them and so far so good. Good interest deal..I hope it lasts and doesn’t ultimately tank once Ally Bank is done trying to acquire new customers

But one of the knocks on certificate of deposit rates have always been the restrictive terms and penalties for premature withdrawal.

But have you guys checked out Ally Bank lately? Ally Bank’s the new online name of GMAC Bank. For whatever reason, GMAC decided to switch its name to pursue a different marketing approach. But my point is – Ally Bank is currently offering No Penalty CD rates. Basically you can withdraw your money and put it anywhere WITHOUT A FEE. Currently the CD rate offered is 2.50% APY for a 9 month no penalty CD.

Here’s a snapshot from the no penalty fee CD account portion of the Ally Bank website:

Get a fixed CD rate with the freedom of a no fee early withdrawal.

– Open with $0
– No fees whatsoever
– Daily compounded interest for maximum earnings
– FDIC insured Maximize your coverage
– Automatic renewal at maturity
– Ability to withdraw and receive earned interest as income – just let us know before the CD maturity date or by ten days after
– Want a no fee early withdrawal? We’ll hand over your full balance and interest any time after the first 6 days of funding your CD
– Your term and rate will go into effect when you make your opening deposit

With FDIC limit backing, you can be sure that any CD investment within the current insured limits of ($250,000) will be safe. Your CD deposit, savings, or checking account investment is “safe” if you remain under the total FDIC limit for that bank. Trying to determine which banks or credit unions will fold and which ones won’t is not a useful exercise IMO. They are not the biggest bank out there but I would think they get enough public and media coverage to fall under the category of “too big to fail”….not absolutely certain, but I would think so.

What’s the current situation and future condition of GMAC Bank? My understanding is that the bank is the financial arm of GM and that it’s been experiencing major problems lately due to the mortgage crisis. Even with possible FDIC insurance, I am still wary of GMAC deposits…what do you guys think?

Cerberus, one of GMAC’s biggest investors had noted earlier in 2009 that “GMAC could run into substantial difficulty” if credit markets continue to decline. I know things have gotten better but are we out of the woods yet? I have major doubts!

I’ll try to update the CD deposit rates as often as possible, particularly after major moves by the Federal Reserve. If they are out of date, please let me know. And yes, even the highest CD rates are not as lucrative as they once were. Bank rates have been dropping rather dramatically lately.

Yes CD deposit rates have continuously ebbed and flowed with the economy and with FED interest rates rather stagnant these days, even the top national CD rates are not as high as they once were. They still offer the best in terms of interest rate of returns for FDIC minded investors however.

I took a look at the 7.5% APY CD rate offer and the terms are rather ridiculous. At first blush the high CD rate is admittedly quite amazing, however the terms and conditions are extremely restrictive. For one thing, the maximum deposit limit is only a mere $1,000 and only the first 350 people can qualify. One would have to be a hardcore, obsessive rate chaser to find this offer even remotely attractive.

The offer also caps the CD limit at $250 for those between the ages of 13 and 25…what a terrible sucker deal for younger folks.

I’m sure the credit union bank got what they wanted out of this particular promotion however – lots of hype and publicity. But once customers examine the detailed conditions of this particular CD rate offer, they’ll realize that it’s all talk and no substance….. Guess we’ll have to keep searching for the best CD rates.

Found a 7.5% APY rate on a one-year CD. One week only! Check it out: (view link)

SB

I agree….P2P lending services like Lending Club and Prosper may be better investments in terms of getting a high interest rate of return at the moment, but then they are not fully protected from loss in the event of a business failure or bankruptcy. With Lending Club type loans, you always have to contend with the possibility of debt defaults on the part of the borrower. I think P2P lending is a good way to diversify one’s investment portfolio, but peer loan investments shouldn’t wind up being the bread and butter of one’s investment approach. U.S. Treasuries and Notes, along with FDIC insured high yield savings accounts and bank certificate of deposits should make up the crux of one’s “safe and secure” money.