Ally Bank CD Rates (February 2025) (original) (raw)
Ally is an online bank that offers many savings options, including certificates of deposit. You can open a variety of CD terms that, when renewed, automatically come with a 0.05% interest rate boost. Plus, none of its CDs require a minimum balance, so everyone can take advantage of the higher rates regardless of their budget.
But Ally Bank is only one of the numerous banks offering solid CD rates at this time, and several offer higher rates. Still, Ally might be a good fit for you if you’re a committed Ally customer. The MarketWatch Guides team here takes an in-depth look at its product.
Key Takeaways
- Ally Bank’s best CD rate is currently 4.30% APY for a 6-month term – higher than many of its peers, but not the highest you can find.
- No minimum deposit for any Ally high-yield CD, including one with no penalty for early withdrawal.
- Our MarketWatch Guides research associate opened a 6-month Ally CD via the bank’s website in December 2023 and noted that the process was “quick, intuitive and user friendly.”
- Ally Bank is best for loyal customers who want the 0.05% loyalty interest rate boost when their CDs renew.
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Ally Bank CD Rates
Certificates of deposit, better known as CDs, can diversify your savings and help guarantee a rate of return on your deposits even if interest rates fall. Rates on your savings accounts can drop quickly with the market, but you’ll still get a predictable return until your CD matures.
Ally has a variety of CD options to choose from. Annual percentage yields (APYs) range from 3.00% to 4.40% on all balance tiers, depending on which CD a borrower chooses and for what term. It currently offers four types of CDs:
- Fixed-rate CDs: Interest rates are locked in for the duration of the entire CD term
- Select CD: Promotional offer that lasts for a limited time
- No-penalty CDs: Withdraw your funds at any time without losing any interest that has accrued
- Raise Your Rate CDs: Comes with the option of raising your rate if Ally’s rate goes up during your CD’s term
Here’s a full breakdown of each CD and term that Ally Bank offers:
| Ally CD Term | APY* | Minimum Deposit | Deposit Value at Close of $1,000 CD |
|---|---|---|---|
| 3 months | 2.90% | Any amount | $1,007.28 |
| 6 months | 3.40% | Any amount | $1,020.46 |
| 9 months | 4.00% | Any amount | $1,030.45 |
| 11 months (No-Penalty CD) | 3.75% | Any amount | $1,034.97 |
| 12 months | 3.90% | Any amount | $1,107.38 |
| 18 months | 3.80% | Any amount | $1,058.65 |
| 2 years (Raise Your Rate) | 3.50% | Any amount | $1,076.41 |
| 3 years | 3.40% | Any amount | $1,107.38 |
| 4 years (Raise Your Rate) | 3.50% | Any amount | $1,158.65 |
| 5 years | 3.40% | Any amount | $1,185.30 |
*APY accurate as of November 14, 2024
Ally Raise Your Rate CD
The Raise Your Rate CD account is available in both two- and four-year terms. Normally, the rate you receive with a certain CD is locked in, but with Raise Your Rate, if the rate goes up, you have the opportunity for a rate increase on your CD. With the two-year term, you can increase your rate one time, but with the four-year term, you can raise it twice.
Ally No-Penalty CD
The No-Penalty CD is an 11-month certificate of deposit that allows bank account holders to withdraw their money without incurring any fees or losing any earned interest. The only catch is that you have to wait at least six days after depositing your money to withdraw your funds.
>> Related: Learn more about the** types of CDs**
Ally Bank CD Rates vs. Other Top Banks
Ally Bank doesn’t have the highest advertised rates on the market, but what sets it apart is that it doesn’t have a minimum deposit requirement or monthly maintenance fees. The institutions currently edging it out when it comes to APY are Discover Bank, Marcus by Goldman Sachs and Synchrony. However, both Discover and Marcus have deposit requirements.
Another aspect worth considering is Synchrony’s early withdrawal penalties are more severe than Ally. For example, if you make a withdrawal from a CD with a term length greater than four years, you’ll lose 365 days of interest with Synchrony. With Ally, you’ll only lose 150.
| Bank | APY on One-Year CD* | Minimum Deposit | Deposit Value at Close of $2,500 CD |
|---|---|---|---|
| Ally Bank | 3.90% | None | $2,599.42 |
| BMO Alto | 4.10% | None | $2,604.62 |
| Capital One | 4.00% | None | $2,601.85 |
| Discover | 4.00% | 2,500∣2,500 | 2,500∣2,602.02 |
| Marcus | 4.25% | 500∣500 | 500∣2,608.53 |
| Quontic | 4.00% | 500∣500 | 500∣2,602.02 |
| Synchrony Bank | 4.00% | None | $2,602.02 |
*APY accurate as of November 14, 2024.
>> Related: Learn more about the best CD rates in the industry.
Ally Bank CDs: Additional Information
Ally Bank doesn’t charge monthly maintenance fees and all deposits made are FDIC-insured. You can open any CD with any amount, but you may get a higher rate for a larger deposit. Unfortunately, Ally doesn’t openly advertise the amounts needed for higher returns on each term.
If you want to add more money to your CD to take advantage of the compounding interest, there is a 10-day window where you can do so at the end of the CD’s term. Until that time, you can’t add additional funds.
Ally CD Early Withdrawal Penalty
Not including the no-penalty CD, Ally does charge early withdrawal fees if you withdraw your CD before it matures. Here’s a breakdown of Ally’s early withdrawal penalties:
| CD Term | Penalty |
|---|---|
| Less than two years | 60 days of interest |
| 25 months to three years | 90 days of interest |
| 37 months to four years | 120 days of interest |
| Terms longer than four years | 150 days of interest |
For each CD, your investment grows with interest that is compounded daily. This means you don’t just get interest on your initial deposit, but also on any interest you’ve earned during your term.
>> Related: Learn more about FDIC insurance
Our Research Process
In December 2023, a MarketWatch Guides research associate opened a high-yield 6-month CD from Ally to evaluate the customer set-up process and overall banking experience. Our associate was already an Ally customer but didn’t have a CD with the bank. Here are some takeaways from this experience:
Ally CD Application
- The online application process to open a CD is simple and takes under five minutes from start to finish. You’ll need an Ally account to open a CD, but this only takes a few minutes to set up.
- The online application interface is intuitive and user-friendly.
- You don’t need to speak to a representative at any stage of the process.
- When setting up a CD account, you’ll first select the desired term and deposit amount to create the account. After this stage, the system prompts users to fund the account via an existing Ally deposit account or by transferring from an outside bank.
MarketWatch Guides Insight
“We’d recommend this CD to a friend or family member – easy to set up and a competitive rate to boot.”
Ally High-Yield Savings
If you don’t want to worry about early withdrawal penalties, Ally Bank also offers a high-yield savings account and a money market account with good rates.
The high-yield savings account offers a 3.80% APY, whereas the money market account offers a 3.80% APY. For both, the rates apply to all deposit amounts. Both accounts are subject to a variable rate, so take that into consideration when deciding between a fixed-rate CD and a savings account.
Compared to national averages, Ally Bank is well above the norm for APY rates with savings accounts. Currently, the national average for a savings account is 0.46% and 0.69% for a money market account.
>> Related: Learn more about the best high-yield savings accounts.
The Bottom Line: Why Choose an Ally Bank CD?
Ally Bank has numerous CD options with competitive rates. Ally doesn’t charge any maintenance fees, nor does it have a minimum deposit amount. It also offers a No-Penalty CD, if you think you might need to withdraw money before your term expires.
If you already have an Ally high-yield savings account, opening an Ally CD is a simple, straightforward process. However, if you’re purely looking for the highest rate possible, you can find CD options with slightly higher yields.
>> Related: Read our review of Ally Bank
FAQ: Ally Bank CDs
Ally Bank’s current CD rates range from 3.00% to 4.50% APY, depending on the CD and chosen term. However, if you have a particularly large deposit, you may receive a higher interest rate.
You can’t get 6% on a CD with Ally according to its advertised rates; however, it may be possible with a large opening deposit. For more information, you would want to speak with an Ally Bank financial advisor.
Compared to its peers, Ally Bank beats many of its competitors, but there are a few that offer higher rates. The highest rate available today is 5.43%.
Yes, an Ally CD is safe. Ally Bank is a member FDIC, and therefore every CD is insured up to the maximum amount.
*Data accurate at time of publication
**Rates accurate as of November 14, 2024
Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.
Editor’s Note: Parts of this story were auto-populated using data from Curinos, a research firm that collects data from more than 3,600 banks and credit unions. For more details on how we compile daily rate data, check out our methodology here.