Ally Bank is an acclaimed digital bank that offers a suite of competitive FDIC-insured online deposit accounts including CDs (certificate of deposits), savings accounts, interest checking and money market accounts.
In this review we will just focus on Ally Bank’s fixed-rate CDs. They have seven standard term CDs ranging from 3 months to 5 years that can be opened as standard CDs or IRA CDs. They also have two promotional CDs – the “Raise Your Rate CD” and the “No Penalty CD.”
The Raise Your Rate CD is beneficial in an ascending interest rate environment. This product gives you the opportunity to increase your rate once over a 2-year term or twice over a 4-year term if the rate for your term and balance tier goes up while your CD is active.
The No Penalty CD, as the name implies, allows you to withdraw any amount at any time after the first six days of funding the account. You can keep the interest earned with no penalties.
For those that may not remember, Ally Bank is the rebrand of GMAC – the financial arm of General Motors. Following the financial collapse of 2008, GMAC fully rebranded to Ally Bank in 2009. Since then they’ve been recognized for numerous awards for online banking innovation, customer service, and their commitment to giving back to local communities.
To see if Ally Bank’s CD rates are right for you, continue reading our review below.
Ally Bank CD Rates + Account Details
Ally Bank CDs are FDIC insured up to $250,000 per depositor or $500,000 for joint accounts. There is no minimum deposit requirement to open an Ally Bank CD.
|14 month select||5.00%|
Ally Bank’s CD rates were surveyed on July 24, 2023.
To give the yields above some context, the current national average for 12 month CDs and 5 year CDs sits at just 1.76% and 1.41% APY (annual percentage yield), respectively, according to FDIC data.
The top yields from online banks like Ally and credit unions with nationwide acceptance are now inching over the 5.50% APY and 4.50% APY mark for the same respective terms.
The 14 month Select CD is another promotional deposit that is available October 17, 2023. This will automatically renew into a 12 month CD upon maturity. Read more here.
Ally had a 20 Month Select CD that expired on August 15, 2023. They may offer this term again with a new rate, but haven’t yet as of the time of this writing.
Ally Ten Day Best Rate Guarantee
All of Ally Bank’s CDs come with a “ten day best rate guarantee.” This means that if you fund your account within 10 days of opening it and rates go up during this time, you will get Ally’s best rate for that term and your balance tier during that time. This also applies with CD renewals.
Interest is compounded daily which gives your overall APY a boost over bank deposits that compound less frequently like monthly or quarterly.
Tiered rates by deposit amount do exist in more favorable savings rate environments; however, Ally Bank CDs pay the same APY for each term regardless of your deposit amount currently.
Early Withdrawal Penalties
Early withdrawal penalties at Ally Bank vary by CD term. They are as follows:
- CD terms of 24 months or less will incur an early withdrawal penalty of 60 days’ interest.
- CD terms of 25 – 36 months will incur an early withdrawal penalty of 90 days’ interest.
- CD terms of 37 – 48 months will incur an early withdrawal penalty of 120 days’ interest.
- CD terms of 48 months or longer will incur an early withdrawal penalty of 150 days’ interest.
Ally Bank has a standard grace period of 10 days where you can withdraw, add or transfer funds without incurring a fee. If nothing is done during this period, the CD will renew under the same terms at the current APY.
Ally Bank Loyalty Rewards for CD Account Holders
Ally Bank has a little-known loyalty program for those that continue to open and/or renew certificates of deposit with them. Currently, they are giving a 0.05% APY bump when you renew any CD with them. Be sure to check back 30 days before your CD matures to see what the reward is at that time.
Raise Your Rate CD Rates + Details
The Raise Your Rate CD offered by Ally Bank is going to be best suited for a climbing interest rate environment. Given the fact that CD rates are generally fixed throughout their duration, an opportunity to give your CD rate a bump when interest rates are on the rise, can be a huge benefit. And one that many other banks do not offer.
Raise Your Rate CD Rates
The 2 year Raise Your Rate CD will give you the opportunity to increase your rate once over the life of the deposit.
The 4 year Raise Your Rate CD will give you the opportunity to increase your rate twice over the life of the deposit.
No Penalty CD Rate + Details
The Ally Bank No Penalty CD comes with only one term at the moment. The term is 11 months. You can withdraw any or all of your money from this deposit at any time after six days from funding the account.
No Penalty CD Rate
As with Ally Bank’s other certificate of deposit products this APY is the same regardless of your deposit amount. In the past Ally Bank has rewarded larger deposits with higher yields; however, rates today are the same across the board for all amounts.
[You can read a review of Ally Bank’s money market account and its current APY here.]
How Much Can You Earn with an Ally Bank CD?
How much you earn with an Ally Bank CD depends on 3 variables. They are:
- the term you choose,
- its APY (annual percentage yield), and
- your deposit size.
Below is a chart showing the total amount of earnings you’d accumulate from interest payments through the life of a few of Ally Bank’s CDs. This assumes a deposit size of $100,000.
|CD Term||APY||Total Interest Earned|
How do Ally Bank’s CD Rates Compare?
To get a better idea of how Ally’s CD rates stack up against the competition take a look at the 2 tables below. The first table compares Ally Bank’s best CD rates with other top U.S. banks and the second compares Ally’s CD rates with other FDIC-insured online banks.
Ally vs Big Banks
|Bank||Best CD Rate (APY)|
|Bank of America||4.75%|
Ally vs other Online Banks
|Bank||Best CD Rate (APY)|
Ally Bank CD FAQs
Still have questions about Ally Bank’s certificates of deposit? See what other consumers are asking around the web plus our responses below.
Can You Get 6% APY on a CD With Ally?
No, you can not get 6.00% APY on a CD with Ally Bank at this time. You can, however, get 5.00% APY on several terms with Ally (9, 14 and 18 months).
Are Ally Bank’s CDs FDIC Insured?
Yes, Ally Bank is member FDIC (#57803) and all of their deposit accounts are federally insured up to $250,000 per depositor or $500,000 on joint accounts.
Are Ally’s CD Rates Higher than Capital One’s CD Rates?
CD rates are changing rapidly due to an increasing interest rate environment. Here is a head-to-head comparison of Capital One’s CD rates vs Ally Bank’s CD rates:
Are Ally Bank’s CD rates going up?
Yes, Ally Bank’s CD rates have been trending up in 2023. That said, Ally has not lifted their CD rates since July of 2023 when a few of their terms hit the 5.00% APY mark for the first time in many years.
What is Ally Bank’s Routing Number?
Ally Bank’s routing number is 124003116.
What is Ally Bank’s Phone Number?
You can call Ally Bank and speak to a representative at (877) 247-2559.
How Do You Withdraw Funds at Maturity?
Once your CD is active you can login to Ally’s online banking portal and submit a transfer request up to 1 year prior to your CD’s maturity (or within your 10 day grace period). Ally will initiate the transfer on the CD’s maturity date if you schedule it ahead of time.
Are Ally Bank CDs Callable?
No, none of Ally Bank’s CDs are callable. Ally will never close out your CD for any reason.