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Ally Bank certificates of deposit (CDs) are an excellent choice for savers who are comfortable with digital banking. It features competitive yields and a variety of CD types and terms savers can enjoy, along with no minimum deposits or maintenance fees.

As it’s an online-only bank, however, you’ll need to be comfortable with digital means of account control. Ally does not have a brick-and-mortar presence.

Account details and annual percentage yields (APYs) are accurate as of July 19, 2024.

Overview of Ally Bank CDs

Ally Bank offers the following CD types:

  • Ally Bank High Yield certificates of deposit: These CDs have terms ranging from three months to five years, with APYs of 3.00% to 4.85%, depending on the term.
  • Ally Bank Raise Your Rate CDs: These CDs come in two- and four-year terms with a 3.75% APY on both terms and offer investors the ability to increase their rate once over a two-year term or twice over a four-year term if Ally’s rates go up.
  • Ally Bank No Penalty CD: This CD offers flexibility by allowing savers to withdraw their balance and accrued interest anytime after the first six days of funding the account. It offers a 4.00% yield.

All three offer a 0.05% Loyalty Reward. If you renew your CD, the reward increases whatever the current yield is.

Overview
Minimum opening deposit
$0
Term lengths
  • High Yield CDs: 3, 6, 9, 12 , 18 months, 3 years, 5 years
  • Raise Your Rate CDs: 2, 4 years
  • No Penalty CDs: 11 months
Compounding schedule
Daily
Early withdrawal penalty
  • Terms of less than 3 months: 30 days’ interest
  • Terms of  3 months to 24 months: 60 days’ interest
  • Terms of 25 months to 36 months: 90 days’ interest
  • Terms of 37 months to 48 months: 120 days’ interest
  • Terms of 49 months or more: 150 days’ interest
You can withdraw the full balance and accrued interest from No Penalty CDs without penalty anytime after the first six days of funding an account
Grace period for penalty-free withdrawals after maturity
10 calendar days

How much can you earn with an Ally Bank CD?

The details of a CD, including its yield, minimum deposit requirements, interest payment schedule, and fees, depend on the issuer and whether you purchase it new. The available yields are listed in the table below.

CD TERMSAPY
3.00%
4.75%
4.85%
11 months (No Penalty CD)
4.00%
4.50%
4.25%
Two years (Raise Your Rate CD)
3.75%
4.00%
Four years (Raise Your Rate CD)
3.75%
3.90%

With our CD calculator below, you can run the numbers to see how much you’d earn.

How Ally Bank CDs compare

Ally Bank’s CD rates stack up well against both brick-and-mortar and online-only competitors.

But before locking in a CD with Ally, you should shop around. Some competitors may offer better promotional rates. Here’s a look at how Ally compares to other big bank players, like Capital One 360 certificates of deposit and Discover® Certificates of Deposit.

CD TERMSALLY BANK HIGH YIELD CD RATES (APY)CAPITAL ONE 360 CD RATES (APY)DISCOVER CD RATES (APY)
Three months
3.00%
N/A
2.00%
Six months
4.75%
4.25%
4.25%
Nine months
4.85%
4.25%
5.10%
12 months
4.50%
5.00%
4.70%
18 months
4.25%
4.45%
4.40%
Three years
4.00%
4.00%
3.75%
Five years
3.90%
3.90%
3.75%

How to open an Ally Bank CD account

You can open an Ally Bank CD account in one of the following ways:

  • Online: Submit an application at allybank.com.
  • By phone: Call 1-877-247-2559.
  • By mail: Download an application and mail it to the listed address.

Documents you’ll need

You must provide the following information to open an Ally Bank CD account:

  • Your name.
  • Your residential street address.
  • Your birth date.
  • Your Social Security or tax identification number.
  • A driver’s license or other government-issued ID.

Other savings options at Ally Bank

As a full-service online bank, Ally Bank offers a variety of banking and savings products beyond CDs, including the following:

  • Ally Bank Savings Account: This account, which offers a variable 4.20% APY on all balances, allows you to organize and maximize your savings using buckets and boosters. There are no monthly maintenance fees or minimum balance requirements, but you are limited to 10 withdrawals per statement cycle.
  • Ally Bank Spending Account: This checking account offers access to bill pay, Zelle, spending buckets, checks and debit cards. The yield is 0.10% APY on balances under $15,000 and 0.25% APY on balances of $15,000 or greater. You can use any Allpoint ATM in the U.S. for free, and Ally reimburses up to $10 per statement cycle for fees charged at other ATMs. There are no monthly maintenance, overdraft or low balance fees. Ally also doesn’t charge for ACH transfers, incoming wires or official/cashier’s checks.
  • Ally Money Market Account (MMA): Here you can earn a variable 4.20% APY on all balance tiers. You will receive checks and a debit card and can make unlimited ATM withdrawals, but Ally limits certain types of withdrawals and transfers to 10 per statement cycle. There are no monthly maintenance fees, overdraft fees, ACH transfer fees, incoming wire fees or minimum balance requirements — all of which helped it make our list of the best money market accounts.
  • Retirement options: You could open an Ally CD or savings account as part of a Roth, Traditional or Simplified Employee Pension (SEP) individual retirement account (IRA).

Learn more: Interested in making Ally Bank your financial home base? Here’s our Ally Bank review.

Frequently asked questions (FAQs)

There is no minimum deposit required to open an Ally Bank CD account.

Yes, Ally Bank CDs have early withdrawal penalties, which vary depending on the type and term. Generally speaking, you can expect the following:

  • Terms of less than three months: 30 days’ interest.
  • Terms of three months to 24 months: 60 days’ interest.
  • Terms of 25 months to 36 months: 90 days’ interest.
  • Terms of 37 months to 48 months: 120 days’ interest.
  • Terms of 49 months or more: 150 days’ interest.

However, in exchange for a lower yield, the 11-month no-penalty CD allows you to withdraw the full balance and accrued interest without penalty anytime after the first six days of funding the account.

Yes, Ally Bank CD accounts are insured by the Federal Deposit Insurance Corporation (FDIC). If the bank fails, the FDIC will protect your Ally Bank deposits up to $250,000 per depositor, per qualifying account ownership category. This protection provides depositors peace of mind.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Tony Dong

BLUEPRINT

Tony Dong is a freelance financial writer with bylines in U.S. News and World Report, the NYSE, the Nasdaq, The Motley Fool and Benzinga. He lives in Vancouver, Canada and is an avid watch collector.

Joel Anderson

BLUEPRINT

Joel Anderson is a business writer who has been living and working in Los Angeles for over a decade. His work has appeared on sites like MSN.com, GoBankingRates and Equities.com, writing about subjects ranging from basic investing knowledge to tech start-ups. He’s focused on spreading financial literacy with his work, helping more people learn how to make their money work for them.

Hannah Alberstadt is the deputy editor of investing and retirement at ˽ýӳ Blueprint. She was most recently a copy editor at The Hill and previously worked in the online legal and financial content spaces, including at Student Loan Hero and LendingTree. She holds bachelor's and master's degrees in English literature, as well as a J.D. Hannah devotes most of her free time to cat rescue.