Ally Bank offers a wide range of CDs with rates that are highly competitive -- all without requiring a monthly fee or minimum deposit. The online-only bank continues to raise its rates for all its terms, but has higher-than-average annual percentage yields, or APYs, for its three- and five-year terms.
Ally offers a Loyalty Reward to raise your rate by 0.50% if you renew your CD. What’s more, Ally’s Ten Day Best Rate Guarantee ensures that you get the best rate if rates go up within 10 days of opening your account.
Here’s our take on Ally’s CDs options and how they compare to other online banks.
High-Yield CDs
This type of CD offers a promising return, but you’ll need to keep the money in the CD for the entire term to earn the listed APY without paying an early withdrawal penalty.
| Term | APY |
| 3 months | 2.00% |
| 6 months | 3.40% |
| 9 months | 4.15% |
| 12 months | 4.50% |
| 18 months | 4.80% |
| 3 years | 4.25% |
| 5 years | 4.25% |
Raise Your Rate CDs
Ally’s Raise Your Rate CD lets you open a CD at the current rate, but you can raise your rate if Ally’s CD rates go up. You can lock in a higher rate once or twice -- depending on your term. However, if you need to withdraw funds, you’ll pay a penalty.
If you’re eligible to raise your rate, you can do so via the Ally app, website or calling 877-247-2559.
| Term | APY |
| 2 years | 3.75% |
| 4 years | 3.75% |
No Penalty CDs
If you’re faced with the need to withdraw money from your CD, Ally’s no-penalty CD lets you do so six days after funding it without incurring a penalty fee. You can withdraw all of your money -- including any interest you earned.
| Term | APY |
| 11 months | 4.25% |
How to fund your Ally CD
Like many other CDs, you can only make a one-time deposit into your account. You can fund your account in one of three ways:
- Transfer money from an external account or from another Ally bank account
- A check using Ally’s mobile deposit or by mail
- Wire transfer (no charge)
Early withdrawal penalties
If you withdraw money from your Ally high-yield or bump-up CD before the term ends, you’ll pay an early withdrawal penalty of interest. For example, if rates continue to rise and you want to move your money to a new CD with a higher APY, you’ll pay a fee worth a certain amount of interest you’ve already earned. Banks, including Ally, base this amount on your term. Below is a breakdown of how much you can expect based on the terms you choose:
| Term | Interest |
| 24 months or less | 60 days’ worth of interest |
| 25-36 months | 90 days’ worth of interest |
| 37-48 months | 120 days’ worth of interest |
| 49 months or longer | 150 days’ worth of interest |
If you want to avoid paying an early withdrawal penalty, consider a CD with a shorter term or a rate-bump CD, that lets you bump up your rate one time if rates rise during your CD term. Ally also offers a no-penalty CD that lets you withdraw from your CD early without incurring a penalty charge.
How much can you earn with Ally’s CDs?
Depending on your term and how much you initially deposit, you may be able to earn a decent return to put toward your financial goals. Here’s how much you can expect to earn with Ally’s CDs, given two different amounts: $100 and $1,000.
| Term | APY | $100 deposit | $1,000 deposit |
| 3 months | 2.00% | $0.50 | $4.96 |
| 6 months | 3.40% | $1.69 | $16.86 |
| 9 months | 4.15% | $3.10 | $30.97 |
| 12 months | 4.50% | $4.50 | $45 |
| 18 months | 4.80% | $7.29 | $72.86 |
| 3 years | 4.25% | $13.30 | $133 |
| 5 years | 4.25% | $23.13 | $231.35 |
How do Ally’s CD rates compare?
CD rates at Ally are much higher than average CD rates listed by the Federal Deposit Insurance Corporation, but are on par with our recommendations for best CD rates at CNET. Here’s how they stack up:
| CD term | Ally | FDIC average | CNET average |
| 6 months | 3.40% | 1.03% | 4.35% |
| 1 year | 4.50% | 1.54% | 4.81% |
| 3 years | 4.25% | 1.34% | 4.22% |
| 5 years | 4.25% | 1.37% | 4.03% |
However, you may be able to find better rates at other banks. Here’s how Ally’s CD rates stack up against its competitors.
| Bank | 6-month APY | 1-year APY | 3-year APY | 5-year APY |
| Ally | 3.40% | 4.50% | 4.25% | 4.25% |
| Synchrony | 4.25% | 4.50% | 4.30% | 4.30% |
| Marcus by Goldman Sachs | 3.90% | 4.50% | 4.30% | 3.80% |
Additional savings options at Ally
Ally offers two additional savings options that allow you to access your money at any time, and don’t require a minimum balance or monthly maintenance fees.
- Online savings: Ally’s online savings account earns 3.75% APY, doesn’t charge monthly maintenance fees and has no minimum deposit requirement. You can open and manage the account online. Plus, the account comes with spending buckets to organize your savings goals in one account.
- Money market account: Ally’s money market account is similar to most other MMAs. It offers a competitive 4.00% APY and you get a few checking account features like mobile check deposit and access to Allpoint ATMs. We also like that Ally’s money market account reimburses up to $10 for out-of-network ATM surcharges per month.
Is Ally a good choice for a savings or CD account?
Ally is a solid choice for high-yield savings accounts and CDs if you’re OK with managing your account online and want to earn a solid return.
While some banks offer better CD rates, we like Ally because it simplifies setting up a place to park your savings. You can open an account online in a few minutes and there’s no minimum deposit or balance required. Plus, you can choose from several CD types and terms -- which can be helpful if you’re looking to build a CD ladder. We especially like that Ally offers no-penalty and bump-up CDs along with high-yield. It’s common for many banks to only offer traditional, high-yield CDs.
If you have several savings goals, Ally’s high-yield savings account shows your month-to-month savings contributions and ways you can save more with roundups from your checking account transactions. Plus, you can set up goals and organize them with spending buckets, which can be more convenient than opening several savings accounts. You can regularly transfer money between internal and external accounts, but the downside is that Ally doesn’t allow cash deposits.
Keep in mind that Ally is an online bank. If you’d prefer a bank with branch access, consider other credit unions or banks with similar banking products and services -- such as Capital One or Alliant.
