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Ally Bank (Member FDIC) is known for operating entirely online.
The bank offers a wide range of CD types, and it's praised for paying some of the best CD rates right now.
With Ally, you can choose from three types of CDs: High Yield CDs, Raise Your Rate CDs, and No Penalty CDs. You don't need a minimum opening deposit for any of these CDs.
Each type of CD offers competitive rates, and the one you choose will likely depend on your banking needs.
Ally CD Rates
Ally High-Yield CD Rates
| Account | Annual Percentage Yield (APY) |
| Ally 3 Month High Yield CD | 3.00% |
| Ally 6 Month High Yield CD | 5.00% APY |
| Ally 9 Month High Yield CD | 5.05% APY |
| Ally 1 Year High Yield CD | 5.25% APY |
| Ally 14 Month Select CD | 5.25% APY |
| Ally 18 Month High Yield CD | 5.15% APY |
| Ally 3 Year High Yield CD | 4.25%APY |
| Ally 5 Year High Yield CD | 4.10% APY |
When you open a High Yield CD, the rate you receive upon opening is fixed. Ally High Yield CDs pay 3.00% to 5.25% APY (Annual Percentage Yield).
If you choose a High Yield CD and withdraw from the account before your term ends, you'll face the following penalties:
- 60 days interest penalty for a CD term of 24 months or less
- 90 days interest penalty for a CD term of 25 months to 36 months
- 120 days interest penalty for a CD term of 37 months to 48 months
- 150 days interest penalty for a CD term of 49 months or more
Ally Raise Your Rate CD Rates
When you open a Raise Your Rate CD, you have the option to increase your rate during the term if Ally's rates go up. Here are the Raise Your Rate terms and current rates:
- 2 years: 4.00% APY. You may increase your rate once during the two-year period.
- 4 years: 4.00% APY. You may increase your rate twice during the four-year period.
If you choose a Raise Your Rate CD and withdraw from the account before your term ends, you'll also face early withdrawal penalties.
Ally No Penalty CD Rates
If you open a No Penalty CD and withdraw from the account before the term ends, you won't have to pay an early withdrawal fee. Ally No Penalty CDs come with an 11-month term and pay 4.55% APY.
Ally CD Rates Pros and Cons
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Ally CDs FAQs
What is the highest CD rate at Ally Bank?
The highest CD rate at Ally Bank is the Ally 18 Month High Yield CD with 5.15% APY.
What are the current CD rates for Ally Bank?
Ally High-Yield CDs pay 3.00% to 5.25% APY. Ally Raise Your Rate CDs pay 4.00% APY, and the Ally No Penalty CD offers 4.55% APY.
Are Ally CDs good?
Ally is a good option if you're searching for a competitive APY on a CD that doesn't require a minimum opening deposit.Ally is also a solid choice if you're looking for a special type of CD that doesn't charge an early withdrawal penalty or lets you request a rate increase.
How Ally CD Rates Compare
Ally CD Rates vs. CIT Bank CD Rates
Ally doesn't require an opening deposit, but CIT Bank calls for a minimum initial deposit of $1,000. CIT also charges higher penalties if you withdraw from your account before it matures.
Ally and CIT Bank both offer a variety of traditional CD terms and a no-penalty CD. The best choice for you may ultimately depend on the term you choose. The highest-paying CDs at Ally are the 9-month, 1-year, 18-month, and 14-month terms. Meanwhile, the highest CIT Bank CD rate is 5.00% APY on a 6-month term.
CIT Bank Review
Ally CD Rates vs. Discover CD Rates
While Ally is ideal for savers who don't have much money upfront, Discoverrequires an opening deposit of $2,500.
If you can swing the $2,500 deposit, your choice will likely come down to what you want out of a CD.
Discover offers high-yield CDs with longer terms than Ally does, all the way up to 10 years. However, it doesn't have CDs that allow you to raise your rate, and there aren't any no-penalty CDs.
Discover CD rates are comparable to Ally CD rates.
Discover Bank Review
Ally CD Rates vs. Marcus CD Rates
Ally doesn't require an opening deposit or a minimum account balance. If you open a CD with Marcus by Goldman Sachs, you must make an initial deposit of at least $500.
Ally's early withdrawal penalties are more affordable than Marcus' penalties. However, both offer no-penalty CDs. Ally only has 11-month No Penalty CDs, and your rate is determined by how your balance. Marcus gives you the option to open a 7-month, 11-month, or 13-month no-penalty CD, and each comes with a different rate.
Marcus CD rates are similar to the rates at Ally. The highest Marcus CD rate is 5.50% APY on a 1 Year CD.
Marcus Bank Review
Why You Should Trust Us: How We Reviewed Ally CDs
We rate bank accounts on a scale from zero to five stars. For our CD review, we used ourCD methodologywhich looks at interest rates, minimum opening deposits, early withdrawal penalties, CD variety, customer support availability, mobile app ratings, and the ethics of the company.
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