Ally Bank CD Rates 2024: Variety and Solid APYs

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.

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Ally Bank CD rates

Unlike some online banks, Ally has several types of CDs:

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

• Bump-up CDs ("Raise Your Rate CD"): These CDs have early withdrawal penalties, but 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 as your CD.

• No-penalty CDs: These CDs have fixed rates, and you can withdraw the full balance after the first six days without a fee.

• Promotional CDs (“Select CD”): Ally sometimes has promotional CDs with a predetermined expiration date.

» Want more options? See the best CD rates

More details about Ally Bank CDs

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What to consider when opening CDs

• CD rates are fixed. If you open nearly any Ally Bank CD today, its annual percentage yield will stay the same until the CD expires. The exception for Ally is its bump-up CDs, offered in two-year and four-year terms, which let you raise your rate once or twice before the CD matures.

• Be aware of two common rules with 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 in Ally’s case, its 11-month no-penalty CD. (Compare this with other no-penalty CDs.)

• Interest accrues in a CD during the term, so you can benefit from compound interest. You can request to receive interest as regularly scheduled payments, or disbursements, to an external account or by check. The frequency can be monthly, quarterly or at longer intervals.

• Compounding frequency doesn’t often help you compare rates. Like a savings account, a CD’s rate is primarily quoted as an annual percentage yield (APY), meaning the annual interest rate that factors in compounding. You can compare two interest rates with different compounding periods using APY. Alternatively, if you only know a CD’s interest rate, you need to know the compounding frequency — often daily or monthly — to estimate your return. Learn more about APY vs. interest rate.

» Unsure about CDs? Consider the best high-yield savings accounts instead