Ally Bank CD rates review
- 1-year APY
- 4.50%
- 3-year APY
- 4.00%
- 5-year APY
- 3.90%
Our verdict
This online bank offers CDs with competitive APYs, and we especially like its no-penalty CD option.
Ally Bank is an online bank known for exceptional customer service, its variety of products and its competitive CDs. Its standard CDs don’t have as many terms as competitors, but you can earn 4.40% on a 6-month CD. There’s also no minimum opening deposit and no-penalty CD options, and interest is compounded daily. As a bonus, there’s a loyalty rewards program for its CDs, offering an additional 0.05% rate increase when you renew any CD with the bank. Ally offers other banking products like an interest-bearing checking account and high-interest savings if you’d like to keep multiple accounts in one place, but as an online bank, you’ll have no access to physical branches.
Best for: Those who want a CD with no deposit requirement and high APY.
Pros
- No minimum deposit requirement
- Up to 4.40% APY on high-yield CDs
- Up to 4.25% APY on no-penalty CDs
- Loyalty program offers rate increase with renewals
Cons
- Online bank with no physical branches
- Fewer terms than some competitors
Overview of Ally Bank CD rates
Ally Bank offers multiple types of CDs: High-Yield CDs, Raise Your Rate CDs and No Penalty CDs. All CD interest is compounded daily, so you’ll get more bang for your buck than a monthly compounding CD.
Rates are high for all its CDs, easily beating out many other banks and doubling national averages. The national average rate on a six-month CD is 1.57%, and Ally offers a sky-high rate of 4.4% APY on its 6-month CD.(1)
| CD term | APY | Minimum deposit |
|---|---|---|
| 3 months | 3% | $0 |
| 6 months | 4.4% | $0 |
| 9 months | 4.45% | $0 |
| 12 months | 4.5% | $0 |
| 18 months | 4.45% | $0 |
| 36 months | 4% | $0 |
| 60 months | 3.9% | $0 |
Other types of CDs
The High Yield CDs offer the best rates, but you have other options. The Raise Your Rate CDs offer higher rates as time goes on, offering either a two- or four-year CD that allows you to increase your rate once during the term if the rate is higher than your current one.
| CD term | APY | Minimum deposit |
|---|---|---|
| 24 months | 4% | $0 |
| 48 months | 4% | $0 |
There is also the no-penalty CDs option, offering only one term that’s up to 4.25% APY for 11 months — one of the highest rates we’ve seen for a no-penalty CD. For many, CDs are inconvenient because your funds are locked in place. But with Ally’s no-penalty CDs, you can withdraw funds as soon as six days after opening the account.
More about Ally Bank CD: Deposits, fees and details
| What it is | Details | How it compares |
|---|---|---|
| Minimum deposit | $0 | Unheard of. Most banks require at least $1,000 for an opening deposit. |
| Term range | 3–60 months | Less than most competitors, as many offer terms of up to 10 years. |
| Early withdrawal penalties |
| Rather typical and does offer a no-penalty CD option with a very high rate. |
| Grace period | 10-day grace period | Typical among competitors. |
Cashout and rollover details
Ally Bank offers a 10-day grace period approaching your CD’s maturity. You can either add funds to your CD, change terms or renew your CD. Ally also offers a unique loyalty program in which you can get a 0.05% rate increase if you choose to renew. If renewed, the 0.05% rate increase is enacted at the end of the grace period.
How Ally Bank’s CDs and rates compare
Ally Bank’s CDs are frontrunners and frequently top the list of best CD rates in the current market. The biggest plus with Ally is the lack of opening deposit requirement, which often turns people away from CDs altogether. Most other banks require at least $1,000, with some even requiring as much as $10,000 to get the best rates.
Ally lets you open a CD for as little or as much as you want and offers high rates on its short terms, so you don’t have to feel tied down. Its 12-month High Yield CD offers up to 4.5% APY, which is only beaten by a handful of competitors. To top it off, you can choose to renew your Ally CD and get a rate increase of 0.05% — a pretty good and lucrative incentive to open and stay with Ally.
One of the only downsides with Ally’s CDs is that there aren’t as many term lengths as some top competitors, but with no minimum deposit required, no balance tiers and high rates, Ally’s CDs are hard to beat.
Compare Ally Bank to competitor rates
Narrow down top CDs by APY and minimum deposits to find the best one for your financial goals. Select Compare for up to four products to see their benefits side by side.
CDs ratings
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
We rate CDs and share certificates on a scale ranging from one to five stars based on what matters most to you. We consider two factors equally when rating CDs: minimum deposits and annual percentage yields (APYs) relative to term length. If a bank requires a different minimum opening deposit depending on the chosen term, we rate the CD based on the average minimum deposit across all terms. And although some institutions offer CDs with terms ranging from one week to 20 years, we only consider term lengths the FDIC uses in its monthly updates on national rates.
Read the full methodology of how we rate CDs.
Ally High Yield CDs is not currently available on Finder
Have you considered Crescent Bank CDs?
Earn competitive rates up to 4.90% APY (annual percentage yield) on terms ranging from 1 to 5 years. Pay $0 maintenance fees. Member FDIC.
- Up to 4.90% APY
- $0 maintenance fees
- $1,000 opening deposit
- Terms from 1 to 5 years
Your reviews
Bethany Finder
Writer, Banking and Loans
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