Ally Bank CD Rates: How They Compare

Online bank Ally has both variety and high rates for its CDs — and no minimum deposit.
Jun 10, 2022

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Ally CD rates

  • 1-year: 2.30% APY

  • 3-year: 2.70% APY

  • 5-year: 2.90% APY

Ally Bank High Yield CD
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Ally Bank’s rates on certificates of deposit are some of the most competitive among banks and credit unions. And there’s no minimum deposit required.

Ally Bank CD rates

Unlike some online banks, Ally has four different types of CDs:

  • Standard CDs (or what it calls "High Yield CD"): These CDs have fixed rates and early withdrawal penalties.

  • Step-up CDs ("Raise Your Rate CD"): These CDs have early withdrawal penalties, but one special perk: You can request a rate increase (once for two-year and twice for four-year) if Ally raises the rate for new CDs with the same term and balance tier as your CD.

  • No-penalty CDs: These CDs have fixed rates, and one unusual perk as well: You can withdraw the full balance after the first six days without incurring the penalties that standard CDs and step-up CDs charge.

  • Promotional CDs (“Select CD”): Ally sometimes offers a high-yield CD with a rate offering that has a predetermined expiration date.

3-month CD (High Yield CD)

0.75% APY

6-month CD (High Yield CD)

1.25% APY

9-month CD (High Yield CD)

1.50% APY

11-month CD (No Penalty CD)

1.40% APY

1-year CD (High Yield CD)

2.30% APY

2-year CD (Raise Your Rate CD)

2.25% APY

18-month CD (High Yield CD)

1.25% APY

3-year CD (High Yield CD)

2.70% APY

4-year CD (Raise Your Rate CD)

2.25% APY

5-year CD (High Yield CD)

2.90% APY

» Want more options? See the best CD rates

More details about Ally Bank CDs

Minimum deposit

None.

Monthly fee

None, which is common for CDs.

Range of CD terms

3 months to 5 years.

Bonus rate feature

10-Day Best Rate Guarantee: If you fund your CD within the first 10 days of opening your account, Ally will offer you the best rate available for that term within those 10 days. So if Ally raises its 5-year CD rate six days after you fund a 5-year CD, your rate will match the new one offered. This feature also applies for the first 10 days after CDs renew.

Compounding period

Daily. (This detail helps you estimate what you can earn using a CD calculator.)

Early withdrawal penalty

  • 60 days' (~2 months) worth of interest* for CDs of terms up to 2 years.

  • 90 days' (~3 months) worth of interest* for CDs of terms longer than 2 years and up to 3 years.

  • 120 days' (~4 months) worth of interest* for CDs of terms longer than 3 years and up to 4 years.

  • 150 days' (~5 months) worth of interest* for CDs of terms longer than 4 years.

*The penalty can include more than actual interest earned if the withdrawal occurs early enough.

Grace period

10 days, starting at the CD's maturity date. Ally Bank CDs automatically renew, so this 10-day window is the only time to withdraw without getting hit by a penalty.

Ally Bank IRA CDs available?

Yes; compare the best IRA CD rates.

Frequently asked questions

Banks and credit unions change up their CD offering over time, so rates don’t stay the same. See the latest on our list of the best CD rates.

Both are online banks with competitive offerings across checking, savings and CDs. See more details on our Ally vs. Capital One comparison.

Your money, up to $250,000, is protected at Ally thanks to insurance through the Federal Deposit Insurance Corp. In addition, Ally has consistently been a top online bank for many years.

What to consider when opening CDs

  • Interest rates are fixed. If you open nearly any Ally Bank CD today, its annual percentage yield will stay the same until the CD expires. This benefits you if you lock in a CD before rates start dropping, but on the flip side, you’ll earn less on a CD if rates keep rising. In 2022, since the Federal Reserve rate increases began, CD rates are on the rise. For some perspective, look back at historical CD rates, including this year’s. Ally also has two step-up CDs, with two-year and four-year terms, which let you raise your rate once or twice before the CD matures.

  • Two common rules with CDs, including with Ally CDs: You can’t make partial withdrawals or add additional funds after making a deposit into a CD.

  • You lose interest if you withdraw early. CDs are built to keep your money out of sight, out of mind. If you dip into almost any Ally CD before it expires, there’s an early withdrawal penalty, which means losing some or all of the interest you earned. There is one exception: an 11-month no-penalty CD. (Compare this with other no-penalty CDs.)

More about Ally Bank

Ally Bank is one of the largest digital-only banks in the U.S. with accounts and loans you can find at traditional banks, such as checking and savings accounts, auto loans, investing accounts, mortgages and CDs. Customers also have free access to over 43,000 free ATMs nationwide. Savings and CD rates are competitive and there are no monthly fees on deposit accounts. The main downside is a lack of cash deposit options, which some other online banks provide. See more on our Ally Bank review.

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Solid rates and variety of CD types

Ally Bank High Yield CD
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Ally Bank CDs have some of the best rates available and a range of different terms and types of CDs, but if you want to compare more options, check out our list of best CD rates for this month.

See CD rates by bank

If you want to see CD rates at specific banks, here’s a quick list of both traditional and online banks’ CDs (and one brokerage’s offering):

See CD rates by term and type

At NerdWallet, we update lists of the best CD rates monthly and factor in minimums and other features. See top CD rates today by term and type:

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