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APY GUY: Maximize Your Savings & Earnings

APY GUY: Maximize Your Savings & Earnings

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Ally Bank

Ally Bank CD Rates – Now up to 4.85% APY!

Written by: editorial staff
May 19, 2023
Fact Checked : Dan Nelson
May 19, 2023

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

image credit: ally.com

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.

CD Rates

TermAPY
3 months2.50%
6 months3.50%
9 months4.15%
12 months4.50%
13 month select4.75%
18 months4.80%
20 month special4.85%
3 years4.25%
5 years4.10%
APY = Annual Percentage Yield

Ally Bank’s CD rates were surveyed on May 19, 2023.

To give the yields above some context, the current national average for 12 month CDs and 5 year CDs sits at just 1.59% and 1.37% 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 5.00% APY and 4.50% APY mark for the same respective terms.

The 20 month CD is a promotional term available through August 15, 2023. This will automatically renew into an 18 month CD upon maturity. Read more here.

The 13 month Select CD is another promotional deposit that is available June 13, 2023. This will automatically renew into a 12 month CD upon maturity. Read more here.

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.

Compounding Interest

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.

Grace Period

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

TermAPY
2 year3.75%
4 year3.75%
APY = Annual Percentage Yield

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

TermAPY
11 months4.25%
APY = Annual Percentage Yield

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:

  1. the term you choose,
  2. its APY (annual percentage yield), and
  3. 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 $10,000.

CD TermAPYTotal Interest Earned
6 month3.50%$173.49
12 month4.50%$450.00
20 month special4.85%$821.33
5 year4.10%$2,225.13
APY = Annual Percentage Yield

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

BankMin. DepositBest CD Rate
Ally Bank$5,0004.85%
Chase$1,0004.00%
Bank of America$100,0004.50%
Citibank$5004.75%
Wells Fargo$1,0004.51%
CD rates surveyed May 19, 2023.

Ally vs other Online Banks

BankMin. DepositBest CD Rate
Ally Bank$5,0004.85%
Crescent Bank$1,0004.90%
CFG Bank$5005.25%
Bread Savings$1,5005.20%
Sallie Mae$2,5005.00%
CD rates surveyed May 19, 2023.

Final Thoughts

Ally Bank keeps their CDs simple and rewarding with no monthly maintenance fees, no opening deposit requirements and even the opportunity to open a “no penalty CD” with fee-free access to your deposited funds.

Their CD rates beat the national average handily although Ally has pulled back their top yields slightly as they used to offer a 5.00% APY promotional CD earlier this year.

Frequently Asked Questions

Still have questions about Ally Bank’s certificates of deposit? See what other consumers are asking and our responses below.

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 CD rates higher than Capital One 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:

AllyCapital One
6 months3.40%3.30%
12 months4.50%4.15%
60 months4.10%4.10%
CD rates surveyed May 19, 2023.

Are Ally Bank’s CD rates going up?

Not at the moment. Ally Bank’s CD rates rose substantially throughout the second half of 2022 and into the beginning of 2023, however, they peaked towards the end of Q1, 2023 with a 5.00% APY (annual percentage yield) offer before dropping down their top yield to the current 4.85% APY shortly thereafter.

Filed Under: CD Rates Tagged With: Ally Bank

Ally Bank Money Market Account – Now up to 3.30% APY!

Written by: editorial staff
January 10, 2023

[📌 Update January, 2023: Ally Bank’s money market account and online savings account continue to see their variable rates rise. Both accounts now provide an APY (annual percentage yield) of 3.30% APY. This is up from 3.00% APY in December. See more account details below.]

Ally Bank is a one-hundred percent digital institution that has practically become synonymous with online banking itself.

After rebranding themselves from GMAC (General Motors Acceptance Corporation) in 2009 to Ally Bank following the 2008 financial crisis, they’ve gone on to position themself front and center in the online banking world.

In September of 2019, they announced that they had soaked up over $100 billion in consumer deposits just months after their 10th year anniversary.

Today, Ally Bank offers a full suite of FDIC-insured deposit accounts with competitive APYs that always stay in-line or ahead of their peers.

Ally Bank’s variable-rate deposit account consists of an interest checking account, an online savings account and a money market account. Their fixed-rate, certificate of deposit accounts consist of standard CDs and a handful of specialty CDs.

For the purpose of this review, we will focus on Ally Bank’s variable-rate money market account.

Ally Bank Money Market Account Details + APY

image credit: ally.com

Ally Bank’s money market account is about as hassle free as they come. It has no minimum deposit requirement to open the account and no monthly balance requirement once the account is opened. The account also has no monthly fees to worry about and features a decent APY.

The APY is tiered based on balance amount, however as of the time of this writing all balances come with the same yield. As the savings rate environment continues to heat up throughout the remainder of 2022, this may change.

Market Account Rate

BalanceAPY
$0 – $5,0003.30%
$5k – $24,999.993.30%
$25k or more3.30%
APY = Annual Percentage Yield

To put the yields above in perspective, the current national average for a savings account sits at just 0.30% APY and the national average on a money market account sits at 0.38% APY, according to FDIC data.

That said, there are a number of money market accounts featuring APYs above 4.00%.

Interest is compounded daily for maximum growth. Keep in mind though that this rate is variable and is subject to change at any time without notice.

Accessing Your Cash

Per Federal Regulation D, you are limited to just 6 withdrawals or transfers per statement cycle. If you exceed this amount, Ally Bank will charge $10 for each additional transaction after the sixth. Please note, that due to COVID-19 Ally Bank is currently refunding these excessive transaction fees. We will update this post when Ally Bank’s policy changes on this matter.

Despite limited digital withdrawals and transfers, you are allowed an unlimited amount of monthly ATM withdrawals.

Upon opening the Ally Bank money market account, Ally will send you a debit card that should arrive in the mail no later than 10 business days after your initial deposit. Your first order of checks will also come within this time frame.

With your Ally Bank ATM card you can make unlimited cash withdrawals from your account for free at any of the 43,000+ Allpoint ATMs across the country. Ally Bank will also reimburse you up to $10 per statement cycle for fees charged at other ATMs.

Adding funds to your money market account is quick and easy with Ally Bank’s mobile app for Android or IOS phones. With the Ally Bank eCheck Deposit feature you can snap a photo of your check and deposit it on the go.

If you have any issues accessing your funds or with the account in general, Ally Bank features 24/7 support with live, actual people.

You can get in contact with them a number of ways outlined on their contact page, or you can give them a call directly at 1-877-247-2559. You’ll notice Ally Bank even shows the estimated customer support wait time at the top, right-hand corner of their homepage.

Fee Schedule

Depending on how you use your Ally Bank money market account, you may encounter various fees from time to time. Below is a complete breakdown of how and where you may encounter these.

Ally Bank Fee Schedule

ActionFee
Returned deposit item$7.50
Overdraft item (paid or returned)$25
Excessive transaction fee$10 (currently reimbursed)
Expedited delivery$15
Outgoing domestic wires$20
Account research fee$25

Unlike many online banks and credit unions, Ally Bank does not charge for incoming wires – either foreign or domestic.

With Ally Bank, you’ll also be entitled to free standard or expedited ACH transfers, copies of online statements, postage paid deposit envelopes, and free cashier checks and regular checks.

Money Market VS Online Savings

Ally Bank’s online savings account is a similar product to their money market account in many ways.

The accounts pay the exact same APY and have the exact same balance tiers. They also have identical fee schedules and nearly identical account features.

Money Market Rate Vs Online Savings Rate

Money MarketAPYOnline SavingsAPY
$0 – $5,0003.30%$0 – $5,0003.30%
$5k – $24,999.993.30%$5k – $24,999.993.30%
$25k or more3.30%$25k or more3.30%
APY = Annual Percentage Yield

So what’s the difference?

Three automated savings tools that are only found with the online savings account.

The difference is in the tools and access that each provides. The online savings account offers 3 automated savings tools that the money market account does not. These are:

  1. Recurring Transfers – Set up automatic transfers into your savings account that works for your budget. This can be a fixed dollar amount or percentage of deposit.
  2. Round Ups – This feature is powered by an Ally Bank algorithm. It tracks your Ally Bank interest checking account transactions and determines when it can round-up to the nearest dollar. Once you’ve built up $5.00 in ’round-ups’ the feature will deposit these funds into your online savings account.
  3. Surprise Savings – Another algorithm feature, this tool analyzes your linked interest checking account for funds it determines as “safe-to-save.” Then it transfers these to your online savings account.

The money market account offers easy ways to access your cash at any time. These include:

  1. Debit Card. This can be used at 43,000+ AllPoint ATM locations nationwide. Ally will also reimburse you up to $10 per month for third party ATM charges.
  2. Check writing capability. The money market account also allows you to write checks.

Filed Under: Money Market Tagged With: Ally Bank

Primary Sidebar

The Big Banks

  • Bank of America CD Rates
  • Capital One CD Rates
  • Citibank CD Rates
  • Chase Bank CD Rates
  • Wells Fargo CD Rates
  • U.S. Bank CD Rates

Noteworthy Credit Unions

  • Navy Federal Credit Union CDs and Savings
  • Patelco Credit Union CDs and Savings
  • PenFed CDs and Savings
  • Connexus Credit Union CDs and Money Market

Brokered CDs

  • Edwards Jones
  • Charles Schwab
  • Fidelity
  • Vanguard

Alternatives

  • 12 Alternatives to CDs and Savings Accounts

Real Estate Investment Platforms

  • Yieldstreet - Avg 10.61% Returns

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