Ally Bank CD Rates: How They Compare

Online bank Ally has variety and high rates for its CDs — and no minimum deposit.
Spencer Tierney
By Spencer Tierney 
Edited by Sara Clarke

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Ally CD rates

  • 1-year: 4.50% APY

  • 3-year: 4.00% APY

  • 5-year: 3.90% APY

Ally Bank High Yield CD
NerdWallet rating 

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 several types of CDs:

  • Standard CDs (or what it calls "High Yield CD"): These CDs have fixed rates and early withdrawal penalties. Learn more about high-yield CDs.

  • Bump-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. Learn more about bump-up CDs.

  • 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 bump-up CDs charge. See the best no-penalty CDs.

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

3-month CD (High Yield CD)

3.00% APY.

6-month CD (High Yield CD)

4.40% APY.

8-month CD (Select CD)

4.40% APY (expires 3/20/24).

9-month CD (High Yield CD)

4.45% APY.

11-month CD (No Penalty CD)

4.00% APY.

1-year CD (High Yield CD)

4.50% APY.

14-month CD (Select CD)

4.65% APY (expires 3/20/24).

18-month CD (High Yield CD)

4.45% APY.

2-year CD (Raise Your Rate CD)

3.75% APY.

3-year CD (High Yield CD)

4.00% APY.

4-year CD (Raise Your Rate CD)

3.75% APY.

5-year CD (High Yield CD)

3.90% APY.

» Want more options? See the best CD rates

Compare CD rates: Ally vs. Synchrony vs. Marcus

If you’re considering high-yield, no-penalty and bump-up CDs, three online banks have them all: Ally Bank, Synchrony Bank and Marcus by Goldman Sachs. See how they differ based on three CDs each:

High-yield CDs

Marcus’ 1-year CD

5.05% APY (annual percentage yield) as of 02/23/2024.

Synchrony’s 1-year CD

4.90% APY.

Ally’s 1-year CD

4.50% APY.

No-penalty CDs

Marcus’ 13-month CD

4.70% APY.

Synchrony's 11-month CD

3.65% APY.

Ally’s 11-month CD

4.00% APY.

Bump-up CDs

Marcus’ 20-month Rate Bump CD

4.40% APY.

Synchrony’s 2-year Bump-Up CD

3.90% APY.

Ally’s 2-year Raise Your Rate CD

3.75% APY.

More details about Ally Bank CDs

Minimum deposit


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 compound interest calculator or CD calculator.)

How you receive interest

  • Interest accrues in Ally CDs, by default. Interest gets credited to the account at maturity (for 1-year CDs or shorter) or annually (for CDs longer than a year).

  • Or you can opt to receive regular interest payments, or disbursements, to an external account or by check. The frequency can be monthly, quarterly or at longer intervals. This option is for non-IRA CDs only.

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.

POD designation available?

Yes, Ally CDs can be “payable on death” accounts, meaning an account owner can choose individuals as beneficiaries to receive funds in the event of the owner’s death. The availability of this type of account ownership may vary based on state laws.

Ally Bank IRA CDs available?

Yes, compare the best IRA CD rates.

Frequently asked questions

Banks and credit unions change up their CD offerings 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 enables you to lock in a CD if rates are relatively high, though there is a risk of losing out if rates continue to rise. It’s hard to know when CD rates will go up, but they are trending upward, thanks to multiple Fed rate increases since March 2022. Here’s a quick look at historical CD rates. Or, if you want a sample of rates each month, see current CD rates. Ally also has two bump-up CDs, with 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, including 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 High Yield CD
NerdWallet rating 

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 and CDs, auto loans for refinancing, investing accounts, mortgages and home improvement loans. Banking customers also have free access to more than 43,000 free ATMs nationwide. Savings and CD rates are competitive and there are no monthly fees on deposit accounts. The main downside is an inability to deposit cash, which some online banks allow. See more about checking, savings and CDs on our Ally Bank review.

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