Ally Bank CD Rates: How They Compare

Spencer TierneyJuly 2, 2020

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Ally CD rates

  • 1-year: 1.00% APY

  • 3-year: 1.05%-1.05% APY, depending on deposit

  • 5-year: 1.15% APY

Ally Bank’s rates on certificates of deposit stand out as competitive among online banks. There’s no minimum deposit required, but some terms have better rates for bigger deposits.

Ally Bank CD rates

Unlike some online banks, Ally has three 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.

3-month CD (High Yield CD)

0.50% APY

6-month CD (High Yield CD)

0.65% APY

9-month CD (High Yield CD)

0.75% APY

11-month CD (No Penalty CD)

0.95% APY

1-year CD (High Yield CD)

1.00% APY

2-year CD (Raise Your Rate CD)

1.00% APY

18-month CD (High Yield CD)

1.05% APY

3-year CD (High Yield CD)

1.05% APY

4-year CD (Raise Your Rate CD)

1.00% APY

5-year CD (High Yield CD)

1.15% APY

» Want more options? See the best CD rates

How Ally Bank CD rates compare

Ally offers a strong offering of CD rates, but some online banks provide even higher ones. Let's compare one-year CD rates:

Barclays CD

Barclays CD

Ally Bank CD

Ally Bank CD

Read reviewRead review
APY

1.10%

With $500 minimum balance

APY

0.85%

With $0 minimum balance

APY

1.00%

With $0 minimum balance

Minimum Balance

$500

Member FDIC

Minimum Balance

$0

Member FDIC

Minimum Balance

$0

Member FDIC

Back to top » Learn more about accounts on our Ally Bank review

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 and balance amount 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 year.

  • 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 after 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

    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. It’s hard to know when CD rates will go up, but here’s a quick look at historical CD rates, including this year’s. Ally has two step-up CDs, its 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 the interest you earned. There is one exception: an 11-month no-penalty CD (compare this with other no-penalty CDs).

    » On the fence about a CD? If there’s a chance you’ll need access to your money, look into the best high-yield savings accounts instead.

    Solid rates and variety of CD types

    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.

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