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Great short-term rates, and no minimum deposit
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Fact checked by Michael Rosenston
Ally Bank is one of the most well-known online banks, and it has an impressive selection of CDs. What’s especially attractive is that its most competitive rate offers usually don’t require tying your money up for multiple years, while all rates are well above the national average. Also appealing is that there is no minimum opening amount, making Ally’s products more accessible than some other online banks.
Important
The APYs listed below are up to date as of the date of publication of this article. We review CD rates every two weeks and update the information below accordingly.
Ally Bank High Yield CD Overview
| CD Term | APY | Minimum Balance |
| 3 months | 3.00% | No minimum |
| 6 months | 4.40% | No minimum |
| 9 months | 4.25% | No minimum |
| 12 months | 4.50% | No minimum |
| 18 months | 4.25% | No minimum |
| 36 months | 4.00% | No minimum |
| 60 months | 3.90% | No minimum |
Raise Your Rate CD Overview
| CD Term | APY | Minimum Balance |
| 2 years | 3.75% | No minimum |
| 4 years | 3.75% | No minimum |
No Penalty CD
| CD Term | APY | Minimum Balance |
| 11 months | 4.00% | No minimum |
See the best CD rates today before choosing the CD that is best for you.
Ally’s specialty CDs provide some extra flexibility:
- Raise Your Rate CDs let you bump up your rate if it goes up during your term—once for the two-year CD or twice for the four-year.
- The No Penalty CD allows you to access your money (plus any interest earned) six days after funding without penalty.
Note
Ally Bank is an online-only bank. Any U.S. resident who is at least 18 years old can open a CD through Ally.
Ally Bank CDs: Key Features
| APY Range | 3.00%-4.50% |
| Minimum Balance | None |
| Term Range | 3 months–5 years |
| Early Withdrawal Penalty | 60 days of interest for 24 months or less; 90 days of interest for 25 to 36 months; 120 days of interest for 37 to 48 months; 150 months of interest for 48 months or longer |
About Ally Bank
If you’re someone who has never opened a CD before or just someone who wants to give their savings a boost, Ally Bank could be a great choice. With no minimum deposit, you can start as small as you’d like. And because the longest terms aren’t necessarily the top interest rate, you don’t have to feel pressured to tie up your cash longer than you may be comfortable doing.
If you’re still hesitant to open a CD, you might consider the 11-month No Penalty CD, which lets you avoid an early withdrawal fee if you need to pull your money out.
Ally is highly rated for customer service, typically offers bank bonuses, and offers a variety of products from checking and savings to personal loans. Ally is ranked third in JD Power’s 2023 U.S. Direct Banking Satisfaction Survey, just slightly under the top two.
If you want to try doing a CD ladder, choosing a bank that has no minimum deposit like Ally can make it more convenient since you’ll be opening multiple CDs at once.
Compare CD Rates
Ally Bank stands up pretty well when compared to other online banks. It doesn’t have the top interest rate around, but because there’s no minimum balance requirement, it is more accessible than other banks that may require $1,000 or more to get started.
Other CDs with consistently high rates come from CIT Bank and Marcus. Their top rates are similar to Ally’s highest rate. However, they have minimum balance requirements of $1,000 and $500, respectively.
What Is Ally’s CD Best Rate Guarantee?
Ally wants to make sure that customers don’t miss out on a potential rate increase in the immediate days following account opening. The Best Rate Guarantee will ensure that you get the highest rate offered between your open date and the date you fund the account (within 10 days).
Is Ally Good for CDs?
Ally Bank is a good option if you’re considering opening a CD. It does not require a minimum deposit amount, rates are competitive, and there are several terms from which to choose. Opening an account online is also quick and easy.
Are Ally Bank CDs Safe?
Ally is FDIC-insured, so your money is well protected. There’s also zero liability should there be any unauthorized transactions on any of your accounts.
What Are the Downsides of Ally Bank?
Ally Bank is online only, so if you prefer a person-to-person, in- branch experience, you won’t get that. Also, while CD rates are competitive, you may find higher rates elsewhere.
Your Guide to CDs
- What Is a Certificate of Deposit (CD)?
- What Is a Brokered CD?
- What Is a CD Ladder?
- Pros and Cons of CDs
- How to Invest With CDs
- How to Open a CD
- How to Close a CD
- CDs vs. Annuities
- CDs vs. Stocks
- CDs vs. Mutual Funds
- CDs vs. ETFs
- CDs vs. Savings Accounts
- Short-Term vs. Long-Term CDs
- CD Rates News
- Best 1-Year CD Rates
- Best 18-Month CDs
- Best Jumbo CD Rates
- Best 6-Month CD Rates
- Best 3-Month CD Rates
- Best Bank CD Rates
Read the original article on Investopedia.