Ally Bank HYSA and CDs and chasing rates

[Tiny]

I see that the Ally No Penalty CD (11 month term) is being offered at 4.75%. There's also an 18 month (traditional) CD with a 5% rate. 
The HYSA just went from 3.4% to 3.6%.      The HYSA interest rate was .05% in April of '22 for some perspective.  

Have any of you used and then closed an Ally No Penalty CD?    If you open one and then close it, say,  4 months into the term - do you get all the interest accrued?   Is there some pitfall to opening one and then closing it before the term ends?       
 


I moved 5K of "sinking fund" money to a 12 month Ally CD back in November '22 (my property tax payment dates got pushed out into the future - so locking up 5K was very risking).  It's got a 3.75% rate.    I probably should have done a No Penalty CD.  But, it's ok. I don't see a need to close this CD.    

I have 3K of "sinking fund" money  I could move to  the 4.75% no penalty (11month term) CD  - as long as I could access this money in Aug/Sept 5 to 6 months from now without losing any of the interest accrued. 

I may also have another couple grand in May and June that I could NOT lock up for long  -  and I'm guessing interest rates will keep going up... So the no penalty CD would be attractive. 
I don't want to mess with Treasury Direct short term  T-Bills for this money.  I'm just not sure if/when I will need it.  

What would you do with 3K of cash... that you might or might not need in 5 to 6 months? 

[chiver78]

I haven't used that one, but I do have a HYSA with American Express. last rate update was a couple weeks ago, it was 3.5%(ish? def over 3%). transfers take about 3 days, no major complaints here. happy to send a referral link, if that's a thing. idk, I get offers all the time and this was one of them. I've had an AmEx CC since I signed up on my college quad in order to get a free t-shirt and procrastinate doing laundry another day.   

[pulmonarymd]

I have amex Hysa as well. They have been good at raising it over the last 9 months, and I agree that the transfers are seamless.

[susana1954]

I'll also chime in at how much I like American Express's HYSA, too.  It went up to 3.75% today.

[Tiny]

I opened the "no penalty cd" at Ally. I moved 5K of "sinking fund" money I already had at Ally (at 3.6% interest) to an 11 month 4.75% "no penalty cd" at Ally. I will most likely close this CD before it matures. But I should get 4 to 6 months of 4.75% interest on it and hopefully I won't loose any interest when I close it early.

I'm getting a bigger than expected tax refund (lost rent  and repair bills due to Hurricane Ian offset my anticipated income and the more 'withholding' i had been paying thru out 2022 calculation I had done. ).   Maybe I will just "pay myself" any "extra withholding" in the future and just write a big check to the government at tax time.   

That anticipated influx of money (that will go to Ally) in the near future - made me more comfortable doing more into the "no penalty CD".... 
Will see how this all goes.