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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.
4.85%
1-year APY
4.25%
3-year APY
4.10%
5-year APY
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 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.
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.
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:
To open a CD with Ally, you’ll need to meet the eligibility requirements:
During the application process, you’ll be asked for the following information:
During or after your application, you’ll need to fund your account. You can use the following ways to fund your 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.
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:
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 |
Ally has a lot of strengths, but there are still a few potential drawbacks to be aware of:
If you prefer in-person banking, you’ll want to keep looking. As always, compare your options when choosing a CD.
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 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.
Once your CD reaches its maturity date, you’ll have a 10-day grace period to decide between the following five options:
If you don’t make a decision, your CD will automatically renew at the end of the 10-day grace period.
If you need to withdraw your funds before the maturity date, it’s important to be aware of the early withdrawal penalties:
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.
Ally makes it easy to get in touch with customer service if you have any questions, concerns or issues:
★★★★★ — 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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