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Ally High Yield CDs
4.0
★★★★★
Finder score
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

In this guide

  • Our verdict
  • Your reviews
  • Ask a question

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 termAPYMinimum deposit
3 months3%$0
6 months4.4%$0
9 months4.45%$0
12 months4.5%$0
18 months4.45%$0
36 months4%$0
60 months3.9%$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 termAPYMinimum deposit
24 months4%$0
48 months4%$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 isDetailsHow it compares
Minimum deposit$0Unheard of. Most banks require at least $1,000 for an opening deposit.
Term range3–60 monthsLess than most competitors, as many offer terms of up to 10 years.
Early withdrawal penalties
  • Purchased or renewed before 12/07/2013: 60 days of interest
  • 24 months or less: 60 days of interest
  • 25–36 months: 90 days of interest
  • 37–48 months: 120 days of interest
  • 49 months or more: 150 days of interest
  • 11-month No Penalty CD: No withdrawal penalty after 6 days of funding
Rather typical and does offer a no-penalty CD option with a very high rate.
Grace period10-day grace periodTypical 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.

Name Product 6-month APY 1-year APY 5-year APY Minimum deposit to open
Crescent Bank CDs
Finder Rating: 4.8 / 5: ★★★★★
Crescent Bank CDs
N/A
4.85%
3.90%
$1,000
Earn competitive rates up to 4.85% APY (annual percentage yield) on terms ranging from 1 to 5 years. Pay $0 maintenance fees. Member FDIC.
Alliant Credit Union CDs
Finder Rating: 4.8 / 5: ★★★★★
Alliant Credit Union CDs
5.00%
5.15%
4.00%
$1,000
Lock in rates as high as 5.15% APY with a low $1,000 minimum deposit. Compounded monthly. FDIC insured.
Western Alliance Bank 12 months CDs through Raisin
Finder Rating: 4.7 / 5: ★★★★★
Western Alliance Bank 12 months CDs through Raisin
N/A
5.05%
N/A
$1
Get 5.05% APY on a 12 month CD, and earn an APY that’s higher than the national average. Pay no fees and just a $1 minimum deposit. FDIC insured.
Valley Direct Online CD
Finder Rating: 5 / 5: ★★★★★
Valley Direct Online CD
N/A
4.50%
N/A
$500
Earn 4.50% APY on a 12 month CD. FDIC insured per depositor, per account ownership category.
Quontic Bank CDs
Finder Rating: 5 / 5: ★★★★★
Quontic Bank CDs
5.05%
4.50%
4.30%
$500
Lock in a high rate. Minimum of $500 required to open. Open your account in 3 minutes or less. Member FDIC.
Ponce Bank CD through Raisin
Finder Rating: 4.9 / 5: ★★★★★
Ponce Bank CD through Raisin
4.00%
N/A
N/A
$1
Snag the highest APYs on the market for the shortest CD terms via Raisin. FDIC insured.
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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.

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Bethany Finder

Writer, Banking and Loans

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