Ally Bank Three Year CD Rate Drops Again

Here is a possible warning for Georgia investors who park their funds in bank CDs. Ally Bank just changed its 3 year High Yield CD rate, effective today, 6/2/2011.

The 3 year rate now stands at1.75% APY. That number has been slowly falling over the past two months. In April, it was 1.80% and just last week, at the end of May, it dropped to 1.78%

Today it stands at 1.75%, a drop of 0.05%, in contrast to the rates either side of it, the 2 year and 4 year, which changed less. The 2 year eased down only by 0.01% and the 4 year by 0.02% in the same timeframe.

Other rates are also falling, but the 5 year rate, while lower has only dropped by 0.1% in the past two months.

The 4 year rate, which was 2.05% in April, is now down to 2.03%.

Even short-terms rates are down. The 3 month APY was 0.54% in April and stands at 0.49% today.

While these are only small changes it is indicative that Ally Bank sees interest rates remaining for for some time to come.

Cash investors may want to review their laddered holdings.