Ally Bank just recently presented a new service, called CD Tracker, that’ll certainly let customers know when their certifications of deposit (CDs) at other banks will mature, so that Ally can market its own CD items to these clients.
Essentially, it’s an e-mail reminder that might assist Ally to poach the deposits that are held at contending banks.
“You’ll get info on Ally Bank CDs to assist you compare products – and choose where to put your cash for terrific returns,” the online bank said in an email informing consumers of the CD Tracker service.
With the service, customers need to supply the maturity dates of their CDs at other banks and the accounts can be nicknamed. No bank names, rate of interest or maturation durations are required. (As far as our company know, the service can just be accessed with a link in the e-mail pointed out above.)
Roughly 4 weeks before a CD develops, Ally will send an e-mail to remind customers of the maturation date. And, not remarkably, Ally will flaunt their own CD rates in an outright effort to persuade customers to move their money at other banks into Ally.
The CD Tracker service isn’t some extravagant device. You might develop an easy reminder on any calendar and it would serve the exact same function – without exposing yourself to targeted marketing.
However, it helps that Ally happens to provide competitive CD rates, so it makes sense for consumers to ditch other banks for Ally’s CDs if the rates are much better.
For circumstances, there are just a handful of online banks that provide a higher 1-year CD rate than that of Ally Bank’s (0.95 % APY as of 6/10/14).
For Ally Bank, the CD Tracker tool is a double-edged sword. On one side, customers might be tempted to open a CD with Ally. On the other, consumers may go the additional mile and study much better CD rates, which will not always be found with Ally. However, with the email suggestion, Ally is at least trying to obtain even more of your company.
This isn’t the first time that Ally took a shameless strategy to attracting new consumers. In 2011, Ally honestly targeted ING Direct customers who did not like the reality that Capital One was obtaining the popular online bank. ING Direct was later on re-branded as Capital One 360.
So, should you sign up for CD Tracker if you are an Ally consumer? Yes.
At the very least, you’ll be reminded that your CDs are maturing soon. Because some CDs will automatically renew upon maturation, it’s your duty to move that cash in other places if you know that the renewed rate is inferior to rates somewhere else (such as Ally).
Why This CD Tracker Device May Advantage the Bank More Than You