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Ally Bank CD rates review
This online bank offers CDs with competitive APYs, and we especially like its No Penalty CD option.
With terms between three months and five years, there’s bound to be an option at this online bank that suits your savings goals. You can choose from its highest APY High Yield CD, Raise Your Rate CD, which offers one rate increase during the term, or its No Penalty CD that you can withdraw from after six days without penalty. However, Ally doesn’t offer in-person banking, probably the reason why it can keep such competitive APYs.
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4.85%
1-year APY
4.25%
3-year APY
4.10%
5-year APY
Details
| Star rate | 4 |
|---|---|
| 3-month APY | 2.50% |
| 6-month APY | 3.50% |
| 9-month APY | 5.00% |
| 1-year APY | 4.85% |
| 18-month APY | 5.00% |
| 3-year APY | 4.25% |
| 5-year APY | 4.10% |
| Early withdrawal penalty | 60 days interest for terms of 1 to 24 months 90 days interest for terms of 25 to 36 months 120 days interest for terms of 37 to 48 months 150 days interest for terms of 49 + months |
| Minimum deposit to open | $0 |
| Interest compounding | Daily |
Review by
Peter Carleton
peter.carleton@findercrew.comPeter Carleton is a writer that covers banking and investing, breaking down what you need to know about where you put your money. When Peter's not thinking about cutting-edge banking apps and robo-advisors, he runs a creative agency and spends his spare time cooking or reading.
Expert review
Ally Bank offers CDs that are competitive with the top banks in the market. We love its No Penalty CD, which offers a high 2.00% APY while still allowing you to withdraw funds as soon as six days after opening the account. Of course, you’ll get the most for your money if you opt for a longer term, such as its three-year High Yield CD with its 4.1% APY.
To compare your earnings with the market, take a look at what you can earn with a three-year Ally High Yield CD if you deposit $2,500: $2,500 x 4.25% APY x 36 months = $332
If you deposit the same amount in a Discover CD, you’ll get the same interest earnings because the current APY is the same for both banks. You might opt for Discover over Ally if you like the brand or use its other products like its credit cards.
However, if you put that amount in a Chase CD, you’d earn: $2,500 x 0.05% APY x 36 months = $3.75.
Ally also offers a wide range of term lengths and CD options. Its High Yield CD offers the highest APYs of its suite of offerings. However, you can go with a two- or four-year Raise Your Rate CD that allows you to increase your rate once during the term if the rate is higher than your current one. Plus, the No Penalty CD that we already mentioned is a great option for keeping your funds free.
You can also opt to turn your High Yield or Raise Your Rate CD to an IRA CD, helping you save for retirement. 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.
However, Ally doesn’t have any branches, meaning that you can’t visit a teller to make a deposit or get help with your account.
How to open an Ally CD account
You can open an Ally CD account online or by calling 877-247-2559 to have a representative walk you through the process.
To get started:
- Go to the provider’s site and follow the steps to apply.
- From the the Ally website, click on Bank and then Open Account.
- Click on the CDs tab, then select which CD you’d like to open.
- Select whether you are a new customer, already have an Ally account or have started an application. Click Next step.
- Proceed through each step and enter all information as prompted.
Eligibility
To open a CD with Ally, you’ll need to meet the eligibility requirements:
- Be a citizen or a legal permanent resident of the US.
- Have a Social Security number.
- Have a US mailing address.
- Be at least 18 years old.
Required information
During the application process, you’ll be asked for the following information:
- Social Security number or taxpayer ID.
- Name, address and date of birth.
- Driver’s license information.
- Email address and phone number.
Funding options
During or after your application, you’ll need to fund your account. You can use the following ways to fund your account.
- Mail a check to: Payment Processing Center, P.O. Box 9001951, Louisville, KY 40290-1951.
- Make an online transfer from an Ally bank account.
- Make an ACH transfer from a non-Ally bank account.
Keep in mind that you can only add funds during the initial funding or after the CD matures if you choose to renew. Ally also doesn’t accept cash, foreign currency or savings bonds.
5 benefits of Ally Bank’s CDs
Regardless of which FDIC-insured certificate of deposit you choose, you’ll get competitive rates, around-the-clock support, easy online access and several other benefits:
- Ally’s Ten-Day Best Rate Guarantee. If you fund a non-IRA CD within 10 days of opening, you’ll get the best rate Ally offers, even if it increases during that time.
- Numerous terms. Ally allows you to choose from a variety of term lengths to find one that best suits your financial needs.
- No minimum deposit. You only need $0.01 to start earning interest on a CD with Ally, while most CD opening deposits range from $250 or more.
- Transparency. All fees and charges are disclosed, making it easy to keep more of your money.
- Loyalty reward. Ally is currently rewarding a boosted APY for those who renew their CD with any Ally CD. The reward amount varies but can run in the range of 0.05% on top of the CD’s current APY.
How much interest you can earn
See how much interest you could make before opening up your CD account with Ally.
| Term length | APY | Amount in savings | Interest earned at maturity |
|---|---|---|---|
| 1 year – High Yield CD | 4.85% | $2,500 | $112 |
| 2 years – Raise Your Rate CD | 3.75% | $2,500 | $191 |
| 3 years – High Yield CD | 4.25% | $2,500 | $332 |
| 5 years – High Yield CD | 4.1% | $2,500 | $578 |
3 drawbacks to look out for
Ally has a lot of strengths, but there are still a few potential drawbacks to be aware of:
- No branches. Ally operates entirely online, so you won’t have access to branches or ATMs. However, customer reps are available by phone 24/7.
- High withdrawal fees. Compared to similar banks, Ally charges higher fees if you withdraw from your CD before maturity.
- Interest postings. Some banks post interest earnings to your account immediately, but Ally doesn’t. On terms of 12 months or less, interest is credited at maturity. On terms greater than 12 months, interest is credited annually at year’s end.
If you prefer in-person banking, you’ll want to keep looking. As always, compare your options when choosing a CD.
Compare Ally Bank with other CD rates
Check out other CDs based on their APYs and minimum opening deposits, and choose Go to site once you find the option that fits you.
Ally Bank reviews and complaints
Ally Bank isn’t accredited with the Better Business Bureau (BBB). However, the organization rates Ally with a C- based on the volume of complaints filed against the business. Ally saw over 150 complaints filed in the past year.
Customers also rate Ally with a 1 of 5 stars on the BBB site, out of over 60 reviews. Ally garners a 1.6 of 5 stars on Trustpilot, compiled from nearly 100 reviews. Customers complain about slow deposits, slow or unreachable customer service and unexpected account locking. However, happy customers emjoy the high interest rates offered, lack of fees and 24/7 phone support.
How to cash in a CD
Once your CD reaches its maturity date, you’ll have a 10-day grace period to decide between the following five options:
- Renew the CD
- Change the term
- Withdraw your money
- Make additional deposits
- Close the CD
If you don’t make a decision, your CD will automatically renew at the end of the 10-day grace period.
Ally CD early withdrawal penalties
If you need to withdraw your funds before the maturity date, it’s important to be aware of the early withdrawal penalties:
High Yield CD
- Less than 24 months: Pay 60 days of interest
- 25–36 months: Pay 90 days of interest
- 37–48 months: Pay 120 days of interest
- 49 months or more: Pay 150 days of interest
Raise Your Rate CD
- 2 years: Pay 60 days of interest
- 4 years: Pay 120 days of interest
No Penalty CD
You can withdraw your full balance plus interest any time after the first six days of opening your account and won’t be charged any fees.
How to get in touch with customer service
Ally makes it easy to get in touch with customer service if you have any questions, concerns or issues:
- By phone: Call a customer rep at 877-247-2559 any time of the day.
- By email: Log in to your account to send a secure email.
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
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