Ally Bank offers seven CD terms, ranging from three months to 60 months. The bank’s CDs tend to be competitive among online banks. There is no minimum deposit requirement to open a CD.
Here’s an overview of the Ally Bank Certificates of Deposit rates. Rates are accurate as of May 3, 2024.
| CD Term | APY | Minimum Deposit |
|---|---|---|
|
3 Months
|
3.00%
|
$0
|
|
6 Months
|
4.40%
|
$0
|
|
9 Months
|
4.25%
|
$0
|
|
12 Months
|
4.50%
|
$0
|
|
18 Months
|
4.25%
|
$0
|
|
36 Months
|
4.00%
|
$0
|
|
60 Months
|
3.90%
|
$0
|
Overview of Ally Bank High-Yield CDs
Ally Bank offers high-yield CDs with competitive rates and no minimum deposit requirement. Interest on Ally CDs compounds daily and is either credited to your account annually or at maturity, depending on your term length.
Ally CDs automatically renew following the 10-day grace period after the maturity date. During the grace period, you can also choose to change term lengths, add or withdraw funds, or close the CD.
Like most banks, Ally Bank charges a penalty any time you withdraw funds before your CD reaches maturity. Early withdrawal penalties on Ally CDs range from 60 days’ interest to 150 days’ interest, depending on your CD term.
Also available from Ally Bank are two other CD types: Raise Your Rate CDs and No Penalty CDs. The Ally Bank Raise Your Rate CD, is available for either two- or four-year terms, allow customers to increase their initial CD rate (3.75% APY) one to two times, depending on the CD’s term length, if rates go up on CDs. The Ally Bank No-Penalty CD earns 4.00% APY and allows you to withdraw your full balance, including interest earned—at any time after the first six days from funding—without paying a penalty.
| Account Features | Details |
|---|---|
|
Minimum Deposit
|
None
|
|
Term Lengths
|
3, 6, 9, 12, 18, 36 and 60 months
|
|
Compounding Schedule
|
Daily
|
|
Early Withdrawal Penalty
|
Terms of 24 months and shorter: 60 days’ interest
Terms 25 months to 36 months: 90 days’ interest
Terms 37 months to 48 months: 120 days’ interest
Terms 49 months or longer: 150 days’ interest
|
|
Grace Period
|
10 days
|
How Much Can You Earn With Ally’s CD Rates?
CDs are a great way to earn extra savings if you have funds you don’t need access to right away. The amount of interest you’ll earn with an Ally CD depends on your account balance and CD term length.
Find out what you can earn with Ally’s High Yield CDs using our CD calculator:
How Ally’s CDs Compare
Ally offers some of the best CD rates you’ll find. That’s especially impressive, considering there is no minimum deposit requirement. Like most online banks, Ally’s CD rates are much higher than the national average, according to the FDIC.
Always compare CD rates at several banks and credit unions to get the best rate possible. Here’s how the Ally CD’s compare to the Capital One Certificates of Deposit and Marcus by Goldman Sachs High-Yield Certificates of Deposit.
| CD Term | Ally Bank | Capital One | Marcus |
|---|---|---|---|
|
3 Months
|
3.00%
|
N/A
|
N/A
|
|
6 Months
|
4.40%
|
4.25%
|
5.10%
|
|
9 Months
|
4.25%
|
4.25%
|
5.00%
|
|
12 Months
|
4.50%
|
4.80%
|
5.00%
|
|
18 Months
|
4.25%
|
4.45%
|
4.60%
|
|
2 Years
|
N/A
|
4.00%
|
4.20%
|
|
30 Months
|
N/A
|
4.00%
|
N/A
|
|
3 Years
|
4.00%
|
4.00%
|
4.15%
|
|
4 Years
|
N/A
|
3.95%
|
4.05%
|
|
5 Years
|
3.90%
|
3.90%
|
4.00%
|
|
6 Years
|
N/A
|
N/A
|
3.90%
|
How To Open a CD With Ally Bank
You can open an Ally CD online through the bank’s website. Other options include applying over the phone or by mail. You must be 18 or older with a U.S. residential address and a Social Security number or Tax Identification Number to open an account. Ally may require you to provide documentation, such as a driver’s license, to verify your identity.
Ally’s CDs come with a 10-day best-rate guarantee. When you fund your CD within ten days of opening, you’ll get the best rate available if it goes up during that time.
Find The Best CD Rates Of 2024
About Ally Bank
Ally Bank is a full-service online bank offering an assortment of personal banking products and services, including checking, savings, money market, CD accounts, mortgages, auto and personal loans, and investment and retirement services.
Founded in 2009, the popular online bank is known for its low fees, competitive rates, and 24/7 customer service. Ally Bank is based out of Sandy, Utah.
Are Ally Bank CDs Safe?
CDs are generally a safe investment because they offer guaranteed returns and FDIC insurance. Because CDs come with fixed rates, you can calculate your future earnings before you open a CD. Ally is FDIC-insured, so your deposits are insured up to $250,000 per person, per ownership category.
Frequently Asked Questions (FAQs)
Are Ally Bank CDs FDIC-insured?
Yes, Ally Bank is FDIC-insured (FDIC No. 57803). Your Ally CD and other account deposits are insured by the federal government up to $250,000 per depositor, per account ownership category, in the event of a bank failure.
What are the CD rates for Ally Bank?
Ally Bank CD rates currently range from 3.00% to 4.50% APY, depending on the term length. CD terms start at three months and extend as long as five years.
What do you need to consider before opening a CD?
Before opening a CD account, be sure that you won’t need access to those funds for the length of your desired CD term. It’s also a good idea to compare rates, minimum deposit requirements and early withdrawal penalties to help ensure you’ve found the best CD for you.
What are the pros and cons of a CD?
In studying the pros and cons of CDs, you will find that CDs may offer more competitive rates than savings and other deposit accounts. Also, CDs at banks are FDIC-insured up to legal limits, so your deposits are safe. CDs come with fixed interest rates, which means you’ll still earn a competitive rate even if rates drop. Unfortunately, this also means you’ll lose out on more earned interest if market rates increase during your CD term. Also, if you need access to your funds before your CD term ends, you’ll usually end up paying a costly early withdrawal penalty.
What alternatives are there to saving with CDs?
Other bank accounts that offer competitive interest rates include high-yield savings accounts, money market accounts and interest-bearing checking accounts.
Do all CDs charge an early withdrawal penalty?
No, not all CDs charge early withdrawal penalties. Some banks, like Ally, offer no-penalty CDs that allow you to withdraw your full balance during your CD term without penalty.
Find The Best CD Rates Of 2024
