Published 8:00 a.m. UTC Nov. 17, 2023
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Ally Bank certificates of deposit (CDs) stand out as an excellent choice for savers who are comfortable with digital banking. It features competitive rates going up to a 5.25% annual percentage yield (APY) and a variety of CD types and terms savers can enjoy along with no minimum deposits or maintenance fees.
As it’s an online-only bank, however, you’ll need to be comfortable with digital means of account control. Ally does not have a brick-and-mortar presence.
Account details and annual percentage yields (APYs) are accurate as of November 16, 2023.
Overview of Ally Bank CDs
Ally Bank offers the following CD types:
- High Yield CDs: Terms for these CDs range from three months to five years, with APYs of 3.00% to 5.15% depending on the term.
- Raise Your Rate CDs: These CDs come in two- and four-year terms with a 4.00% APY and offer investors the ability to increase their rate once over a two-year term or twice over a four-year term if Ally’s rates go up.
- No Penalty CD: This CD offers flexibility by allowing savers to withdraw their balance and accrued interest anytime after the first six days of funding an account. It offers a 4.55% APY on an 11-month term.
- Select CDs: Ally offers two promotional CDs with terms of eight and 14 months, paying APYs of 5.25% and 5.10%, respectively. The former automatically renews into a nine-month High Yield CD, while the latter automatically renews into a 12-month High Yield CD. Promotional terms are available through March 20, 2024.
How much can you earn with an Ally Bank CD?
Savings products like CDs have thrived in the rising interest rate environment of 2022 and 2023, reaping the benefits of higher yields. Investors looking for a virtually risk-free way to earn competitive yields have an accessible way to do so via CDs.
Ally Bank’s CD rates are competitive with all yields well above the national average rates. Investors can easily mix and match various options to build their ideal CD ladder. Use our CD calculator to see exactly how much you could earn.
All rates below are for Ally’s High Yield CDs unless otherwise indicated.
How Ally Bank CDs compare
Ally Bank’s CD rates stack up well against both brick-and-mortar and online-only competitors. The combination of versatility in the form of No Penalty CDs and attractive yields from promotional Select CDs gives savers plenty of options to choose from in terms of flexibility and returns.
However, you should shop around before locking in a CD with Ally, as competitors may offer better promotional rates. Here’s a look at the CD rates offered by Capital One and Discover compared to Ally Bank’s High Yield CD rates.
How to open an Ally Bank CD account
You can open an Ally Bank CD account in one of the following ways:
- Online: Submit an application at allybank.com.
- By phone: Call 1-877-247-2559.
- By mail: Download an application and mail it to the listed address.
Documents you’ll need
You must provide the following information to open an Ally Bank CD account:
- Your name.
- Your street address.
- Your birth date.
- Your Social Security or tax identification number.
- A driver’s license or other identifying document.
Other savings options at Ally Bank
As a full-service online bank, Ally Bank offers a variety of banking and savings products beyond CDs, including the following:
- Savings Account: This account, which offers a variable 4.25% APY on all balance tiers, allows you to organize and maximize your savings using buckets and boosters. There are no monthly maintenance fees or minimum balance requirements, but you are limited to 10 withdrawals per statement cycle.
- Spending Account: The Ally Bank Spending Account offers access to bill pay, Zelle, spending buckets, checks and debit cards. There is a variable 0.10% APY for minimum daily balances of less than $15,000 and a variable 0.25% APY for minimum daily balances of $15,000 or more. You can use any Allpoint ATM in the U.S. for free, and Ally reimburses up to $10 per statement cycle for fees charged at other ATMs. There are no monthly maintenance, overdraft or low balance fees. Ally also doesn’t charge for ACH transfers, incoming wires or official/cashier’s checks.
- Money Market Account (MMA): This account has a variable 4.40% APY on all balance tiers. You will receive checks and a debit card and can make unlimited ATM withdrawals, but Ally limits certain types of withdrawals and transfers to 10 per statement cycle. There are no monthly maintenance fees, overdraft fees, ACH transfer fees, incoming wire fees or minimum balance requirements.
- Individual Retirement Account (IRA): This is available as a Roth, Traditional or Simplified Employee Pension (SEP) IRA and can be in the form of a CD or savings account. There are no monthly maintenance fees.
Frequently asked questions (FAQs)
There is no minimum deposit required to open an Ally Bank CD account.
Yes, Ally Bank CDs have early withdrawal penalties, which vary depending on the type and term. Generally speaking, you can expect the following:
- Terms of less than three months: 30 days’ interest.
- Terms of three months to 24 months: 60 days’ interest.
- Terms of 25 months to 36 months: 90 days’ interest.
- Terms of 37 months to 48 months: 120 days’ interest.
- Terms of 49 months or more: 150 days’ interest.
However, in exchange for a lower yield, the 11-month No Penalty CD allows you to withdraw the full balance and accrued interest without penalty anytime after the first six days of funding the account.
Yes, Ally Bank CD accounts are insured by the Federal Deposit Insurance Corporation (FDIC). This means that in the unlikely event that the bank fails, the FDIC will protect your Ally Bank deposits up to $250,000 per depositor, per qualifying account ownership category. This protection provides peace of mind for depositors.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
