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Compare certificates of deposit from Ally Bank
This online bank offers three CDs with competitive APYs and various terms.
finder.com’s rating: 4.0 / 5.0
★★★★★
Growing your savings can be tough, especially if you tend to make frequent withdrawals. Certificates of deposit are a great way to lock away your money and earn more interest than a standard savings account.
With terms between three months and five years, there’s bound to be an option at this online bank that suits your financial situation and savings goals.
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0.55%
1-year APY
0.65%
3-year APY
0.8%
5-year APY
Details
| Minimum deposit to open | $0.01 |
|---|---|
| Interest compounding | Daily |
| 3-month APY | 0.15% |
| 6-month APY | 0.25% |
| 9-month APY | 0.3% |
| 1-year APY | 0.55% |
| 18-month APY | 0.6% |
| 3-year APY | 0.65% |
| 5-year APY | 0.8% |
| 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 |
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’s CDs are best for those looking to keep their savings locked away for a year or more. Depending on your term, you have the potential of earning up to 0.8% APY. You have a variety of CDs to choose from with flexible terms making it easy to find a product that suits your financial needs.
However, it doesn’t have any branches, meaning you can’t visit a teller to make a deposit or get help with your account.
How do I open a Ally CD account?
Ally makes it easy to open an account online, by phone or by mail:
How to open an Ally CD online:
- 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.
How to open an Ally CD by phone:
Call 877-247-2559 to have a representative walk you through the process.
How to open an Ally CD by mail:
Find and print the application you prefer from Ally’s site, fill it out and mail it to the address on the form. Your application options include single or joint, custodial, trust, traditional-SEP IRA and Roth IRA.
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 methods:
- Mail a check.
- Make an online transfer from an Ally bank account.
- Make an ACH transfer from a non-Ally bank account.
What types of CDs does Ally offer?
- Ally High Yield CDs. Grow your money quickly with interest rates between 0.15% and 0.8%, terms between three and 60 months and interest compounded daily.
- Ally Raise Your Rate CDs. This account offers a competitive 0.7% APY that can increase over time depending on your balance and Ally’s rates.
- Ally No Penalty CD. If you want access to your money with a higher interest rate than a standard savings account, this option may be right for you.
- Ally IRA CD. If you are looking for a way to step up your retirement savings, you might want to look into IRA High Yield CD, IRA Raise Your Rate CD and IRA Online Savings. They are available as a Traditional, Roth and SEP IRA.
What are the 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:
- Compound interest. Interest is compounded daily to help your savings grow faster.
- Transparency. All fees and charges are disclosed, making it easy to keep more of your money.
- No maintenance fees. Ally’s CDs don’t have monthly maintenance fees, helping you reach your savings goals faster.
- Ally’s Ten Day Best Rate Guarantee. If you fund your account 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. While most CD opening deposits range from $250 or more, you only need $0.01 to start earning interest on a CD with Ally.
What should I 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.
- No partial withdrawals. Some banks and credit unions allow you to make partial withdrawals. Ally doesn’t.
- High withdrawal fees. Compared to similar banks, Ally charges higher fees if you withdraw from your CD before maturity.
- Small product selection. While Ally has checking and savings accounts, it doesn’t offer business or brokerage accounts and many types of loans.
- 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 with other CD rates
How do I 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 can I 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: 877-247-2559
- By email: Log in to your account to send a secure email
Frequently asked questions
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.