Image by Adobe Stock; Illustration by Tiffany Herring
Ally Bank, an online bank, offers three flavors of CDs: traditional CDs, no-penalty CDs, and raise your rate CDs. Most come with a variety of terms. None has a minimum balance requirement or monthly fee.
Ally Bank earned high marks across its deposit products, including CDs, in our thorough review. Ally was also named the best bank overall as part of the 2023 Bankrate Awards.
Ally Bank CD interest rates
Here’s a closer look at Ally Bank’s CD rates. The rates on Ally’s traditional high-yield CDs are very competitive. The rates on the bump-up and no-penalty CDs are somewhat lower, but still well above the national average.
High Yield CD
Ally’s High Yield CD is a standard CD with APYs that vary with term length.
| Institution | Term | APY | Min. deposit |
|---|---|---|---|
| Ally Bank | 3 months | 3.00% APY | $0 |
| Ally Bank | 6 months | 5.00% APY | $0 |
| Ally Bank | 9 months | 5.05% APY | $0 |
| Ally Bank | 1 year | 5.25% APY | $0 |
| Ally Bank | 18 months | 5.15% APY | $0 |
| Ally Bank | 2 years | 4.00% APY | $0 |
| Ally Bank | 3 years | 4.25% APY | $0 |
| Ally Bank | 4 years | 4.00% APY | $0 |
| Ally Bank | 5 years | 4.10% APY | $0 |
Note: Annual percentage yields (APYs) shown for Ally’s High Yield CD were last updated between Dec. 11 and Dec. 17, and may vary by region for some products.
Raise Your Rate CD
Ally’s Raise Your Rate CD lets you increase your interest rate once in the two-year CD’s term and twice during the term of the four-year CD, should rates rise.
| Account name | Term | APY | Minimum deposit |
| Raise Your Rate CD | 2 years | 4.00% | $0 |
| Raise Your Rate CD | 4 years | 4.00% | $0 |
Note: Annual percentage yields (APYs) shown for Ally’s Raise Your Rate CD are as of Nov. 28, 2023, and may vary by region.
No Penalty CD
Ally’s No Penalty CD doesn’t charge an early withdrawal penalty if a withdrawal is made six or more days after funding the CD. Just one term is available.
| Account name | Term | APY | Minimum deposit |
| No Penalty CD | 11 months | 4.55% | $0 |
Note: Ally offers a .05 percent loyalty reward when renewing a maturing CD. Annual percentage yields (APYs) shown for Ally’s No Penalty CD are as of Nov. 28, 2023, and may vary by region.
How Ally Bank rates compare with top-yielding banks
Ally’s CD rates are competitive. Ally has slightly fewer options for long-term CDs than some other banks, but it’s still easy to establish a CD ladder.
Online banks such as EverBank and LendingCluboffer higher rates on a one-year CD, for instance. But unlike Ally, they also have minimum deposit requirements.
Other savings options at Ally
Ally offers a highly rated online savings account if you need more flexibility with your savings. The Ally Online Savings account pays a higher yield than some of Ally’s CDs, including the three- and six-month CDs.
Ally’s money market account is another solid option that offers a competitive yield along with no monthly fees or minimum balance requirements.
As a seasoned financial expert with a deep understanding of banking products, let's delve into the comprehensive information provided in the article regarding Ally Bank's Certificate of Deposit (CD) offerings.
Ally Bank's CD Offerings Overview:
Ally Bank stands out in the online banking sector, notably for its diverse CD options. The three types of CDs they offer are:
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Traditional High Yield CDs: These are standard CDs with varying Annual Percentage Yields (APYs) based on the term length. Ally Bank's traditional high-yield CDs have competitive rates, making them a favorable choice for savers.
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Raise Your Rate CDs: This unique CD type allows account holders to increase their interest rate once during the two-year CD term and twice during the four-year CD term if interest rates rise. This feature provides a degree of flexibility in response to changing market conditions.
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No Penalty CDs: Ally's No Penalty CD is distinctive in that it doesn't impose an early withdrawal penalty if a withdrawal is made six or more days after funding the CD. This offers a level of liquidity uncommon in traditional CD products.
Ally Bank CD Interest Rates:
Let's examine the interest rates for each type of CD:
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High Yield CD Rates: The rates for Ally's High Yield CDs vary with the term length, ranging from 3.00% APY for 3 months to 5.25% APY for 1 year. Notably, all of these CDs have no minimum deposit requirement.
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Raise Your Rate CD Rates: Both the two-year and four-year Raise Your Rate CDs offer a fixed 4.00% APY, with no minimum deposit requirement.
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No Penalty CD Rates: The No Penalty CD, with a term of 11 months, offers a competitive 4.55% APY and requires no minimum deposit.
Comparative Analysis:
Ally Bank's CD rates are highly competitive, earning it high marks in comprehensive reviews, including the prestigious 2023 Bankrate Awards. The traditional High Yield CDs have rates that are notably above the national average, with the No Penalty CD offering flexibility without sacrificing returns.
In comparison to other banks, Ally's CD rates remain competitive. While some online banks like EverBank and LendingClub may offer higher rates for a one-year CD, Ally distinguishes itself by not imposing minimum deposit requirements, making it more accessible to a broader range of savers.
Additional Savings Options:
Beyond CDs, Ally Bank provides additional savings options:
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Online Savings Account: Ally's Online Savings account offers a higher yield than some of its CDs, providing flexibility for those seeking a more liquid savings option.
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Money Market Account: Ally's money market account is another attractive option, featuring a competitive yield along with no monthly fees or minimum balance requirements.
In conclusion, Ally Bank's CD offerings, coupled with its other savings products, position it as a top choice for individuals seeking competitive returns, flexibility, and accessibility in their savings strategy. The bank's recognition in the 2023 Bankrate Awards further attests to its excellence in the financial services landscape.
