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Ally Bank (Member FDIC) is known for operating entirely online.
The bank offers a wide range of CD types, and it's praised for paying some of the best CD rates for accounts with no minimum opening deposit.
Ally CD Rates Today
When you open a High Yield CD, the rate you receive upon opening is fixed. Ally High Yield CDs pay 3.00% to 4.85% APY (Annual Percentage Yield).
Learn more about current Ally CD rates, below.
| Account | Annual Percentage Yield (APY) |
| Ally 3 Month High Yield CD | 3.00% APY |
| Ally 6 Month High Yield CD | 4.75% APY |
| Ally 9 Month High Yield CD | 4.85% APY |
| Ally 1 Year High Yield CD | 4.50% APY |
| Ally 18 Month High Yield CD | 4.25% APY |
| Ally 3 Year High Yield CD | 4.00% APY |
| Ally 5 Year High Yield CD | 3.90% APY |
Ally High Yield CD Rates
Ally High Yield CDs pay more than average CD rates, regardless of your chosen term. Other online financial institutions might have even more competitive rates than Ally. That said, Ally is still an overall good option a far as popular online banks go.
Ally Raise Your Rate CD Rates
When you open a Raise Your Rate CD, you have the option to increase your rate during the term if Ally's rates go up. Here are the Raise Your Rate terms and current rates:
- 2 years: 3.75% APY. You may increase your rate once during the two-year period.
- 4 years: 3.75% APY. You may increase your rate twice during the four-year period.
You might want a bump-up CD if you expect rates to rise in the future. You won't have to wait until your CD matures to take advantage of a better rate.
Ally No Penalty CD Rates
If you open a No Penalty CD and withdraw from the account before the term ends, you won't have to pay an early withdrawal fee. Ally No Penalty CDs come with an 11-month term and pay 4.00% APY.
Ally has one of the best no-penalty CD rates overall.
Ally CD Pros and Cons
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Ally CDs: What You Need to Know
Ally offers regular CDs, bump-up CDs, and one no-penalty CD. We provide an overview of how each Ally CD works, as well as cover other important factors about banking with Ally.
Types of Ally CD Offerings
With Ally, you can choose from three types of CDs: High Yield CDs, Raise Your Rate CDs, and No Penalty CDs.
High Yield CDs are the bank's regular account offerings. Ally offers a standard range of CD terms. You can choose between terms ranging from 3 months to 5 years.
Raise Your Rate CDs, and No Penalty CDs are specialty CDs you won't find at every bank. Raise Your Rate CDs are a type of bump-up CD. These CDs allow you to ask for a rate increase on a 2-year or 4-year term if rates rise during the term. A No Penalty CD lets you make early withdrawals from a CD without facing any early withdrawal fees.
Online Banking Experience
Ally doesn't have physical locations, and you can't deposit cash. A brick-and-mortar bank will be more suitable if you prioritize these features in your banking experience.
If you're interested in an online banking experience, Ally stands out from competitors because it has 24/7 customer support by phone. This may be beneficial if typical bank hours don't usually work for you.
Low Minimum Opening Deposit
You don't need a minimum opening deposit for any Ally CDs. Banks generally require at least $1,000 to open a CD. This makes Ally an especially strong option for anyone who is looking for lenient CD opening requirements.
Lenient Early Withdrawal Penalties
If you choose a High Yield CD or Raise Your Rate CD and withdraw from the account before your term ends, you'll face the following penalties:
- 60 days interest penalty for a CD term of 24 months or less
- 90 days interest penalty for a CD term of 25 months to 36 months
- 120 days interest penalty for a CD term of 37 months to 48 months
- 150 days interest penalty for a CD term of 49 months or more
Ally's early withdrawal penalties are more lenient than other banks.
Factors Affecting Ally CD Earnings
The amount of interest you'll earn in a year is the CD's APY. The APY of an account can fluctuate over time. Indirect factors like economic conditions can affect the APY.
Your choices can also affect your total CD earnings. We'll explain more about that below.
Market and Economic Conditions
You might notice that Ally CD rates often change during the year. That's because Ally CDs are indirectly impacted by economic conditions. Generally, Ally CD rates go up when the Federal Reserve raises the rate. You'll see Ally CD rates drop when the Federal Reserve cuts rates.
The Fed holds meetings several times a year, which is when they adjust the federal funds rate. To get a better understanding of economic conditions, you can review what will happen at the next Fed meeting.
CD Term Lengths
Each Ally CD term has a specific APY. Usually, Ally's long-term CDs pay the most competitive APY. However, short-term CD rates have higher interest rates than long-term CD rates right now. That's why Ally's 9-month, 1-year, 14-month, and 18-month terms have higher rates than the bank's long-term options.
Experts recommend choosing a CD term based on your goals. You can also build a CD ladder if you're interested in opening multiple CDs with different term lengths. Using this strategy will allow you to take advantage of the highest rates and have more flexibility.
Opening Deposit
Ally CDs only let you deposit money upon account opening. You won't be able to make an additional deposit until your CD reaches maturity. Hence, the money you deposit initially will determine how much you'll earn in the long run. You'll get more interest if you deposit more money into a CD.
How Ally CD Rates Compare
Ally CD Rates vs. CIT Bank CD Rates
Ally doesn't require an opening deposit, but CIT Bank calls for a minimum initial deposit of $1,000. CIT also charges higher penalties if you withdraw from your account before it matures.
Ally and CIT Bank both offer a variety of traditional CD terms and a no-penalty CD. The highest-paying CDs at Ally is the 14-month term while the highest CIT Bank CD rate is 3.50% APY on the 13-month term.
CIT Bank Review
Ally CD Rates vs. Discover CD Rates
While Ally is ideal for savers who don't have much money upfront, Discover® requires an opening deposit of $2,500.
If you can swing the $2,500 deposit, your choice will likely come down to what you want out of a CD.
Discover offers high-yield CDs with longer terms than Ally does, all the way up to 10 years. However, it doesn't have CDs that allow you to raise your rate, and there aren't any no-penalty CDs.
Discover CD rates are comparable to Ally CD rates.
Discover Bank Review
Ally CD Rates vs. Marcus CD Rates
Ally doesn't require an opening deposit or a minimum account balance. If you open a CD with Marcus by Goldman Sachs, you must make an initial deposit of at least $500.
Ally's early withdrawal penalties are more affordable than Marcus' penalties. However, both offer no-penalty CDs. Ally only has 11-month No Penalty CDs, and your rate is determined by how your balance. Marcus gives you the option to open a 7-month, 11-month, or 13-month no-penalty CD, and each comes with a different rate.
Marcus CD rates are similar to the rates at Ally. The highest Marcus CD rate is 5.15% APY on its 1 Year CD.
Marcus Bank Review
Are Ally CDs the Right Fit for Your Savings?
Ally is one of the best online banks and an excellent choice for CDs. Its CDs stand out from competitors because they have $0 opening deposit requirements, standard-to-low early withdrawal penalties, and great CD rates.
Ally is also a solid choice if you're looking for a special type of CD that doesn't charge an early withdrawal penalty or lets you request a rate increase.
Why You Should Trust Us: How We Reviewed Ally CDs
We rate bank accounts on a scale from zero to five stars. For our CD review, we used our CD methodology which looks at interest rates, minimum opening deposits, early withdrawal penalties, CD variety, customer support availability, mobile app ratings, and the ethics of the company.
Ally CDs FAQs
Are Ally CD rates typically competitive?
Ally High Yield CDs pay higher rates than average CDs. The no-penalty and bump-up CDs are especially competitive when looking at offerings from competitors.
How often do Ally CD rates change?
Ally can decide to change Ally CD rates at any time, although rates are usually impacted by economic conditions. If you have an Ally CD open, the rate will remain fixed until it reaches maturity. Renewed CDs may offer a different rate from your previous account, though.
What is the highest CD rate at Ally Bank?
The highest CD rate at Ally Bank is the Ally 1 Year High Yield CD with 4.50% APY.
Does Ally have any unique types of CDs?
Ally has two Raise Your Rate CDs and a No Penalty CD. Raise Your Rate CDs are bump-up CDs, which allow you to ask for a rate increase while your account is open. A No Penalty CD lets you withdraw for free before your CD reaches maturity.
Do I need an Ally bank account to open an Ally CD?
No, you don't need an Ally bank account to open an Ally CD. You can apply for an Ally CD and make an ACH transfer from an external bank.
What is Ally's CD early withdrawal penalty?
Ally High Yield CDs and Raise Your Rate CDs have early withdrawal penalties. Penalties range from 60 days to 150 days of interest, depending on the term.
Banking Editor
Sophia Acevedo is a banking editor at Business Insider. She has spent three years as a personal finance journalist and is an expert across numerous banking topics.ExperienceSophia leads Personal Finance Insider's banking coverage, including reviews, guides, reference articles, and news. She edits and updates articles about banks, checking and savings accounts, CD rates, and budgeting and saving. She is highly knowledgeable about long-term trends in rates and offers at banks across the U.S.Before joining Business Insider, Sophia worked as a journalist at her college newspaper and was a freelance writer. She has spent seven years writing and editing as a journalist.Sophia was nominated for an Axel Springer Award for Change in 2023 for her coverage of ABLE accounts, tax-free savings accounts for people with disabilities. She was also a winner of a 2018 California Journalism Awards Campus Contest for her photography.She loves helping people find the best solutions for their unique needs and hopes that more people will find the tools to solve their financial problems. She’s inspired by stories of everyday people adapting to their financial circ*mstances and overcoming their fears around money.ExpertiseSophia's expertise includes:
- Bank accounts
- Savings and CD rate trends
- Budgeting
- Saving
- How banks operate
EducationSophia graduated from California State University Fullerton with a degree in journalism and a minor in political science.She is an avid reader across a variety of genres, and she started running in 2021. She ran in the 2024 Los Angeles Marathon.
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Evelyn He is a Compliance and Operations Associate on the Personal Finance team to ensure content accuracy and editorial independence so readers get up-to-date and objective financial advice.The compliance team's mission is to provide readers with fact-checked and current stories so they can make informed financial decisions. The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.
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