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Competitive CD Rates from Ally Bank

Over the next several years, CD rates and all interest rates are moving higher so we have recommended staying invested in shorter term CD accounts to take advantage of higher rates when they do finally come. Ally Bank offers a couple of CD products (see below) that allow you to lock into a rate higher than most variable rate accounts yet still have the flexibility to take advantage of higher rates.

Opening a CD account with Ally Bank is done online since they are a "branch free" bank. Opening an account is easy to do and you can call the bank at 1-877-247-ALLY(2559) anytime day or night to speak to a representative. You can also email Ally Bank at customercare@allybank.com with any questions you may have. Like most banks these days, Ally Bank also offers a mobile app you can use to do all of your banking with Ally.



Ally Bank 1 Year CD Rates Higher at 0.99 Percent


For years now, Ally Bank has consistently been offering one of the top rates in our database for 1 year certificates of deposit. Ally Bank used to be known an GMAC Bank but changed its name several years ago. Current Ally Bank CD rates for 1 year regular certificates of deposit  are at 0.99 percent with an APY of 0.99 percent. Ally Bank's 1 year bank CD rate is higher than the current national average 1 year CD rate of 0.81 percent.

Ally's 1 year rate isn't the highest CD rate available on our rate table but there is no minimum opening deposit. The best CD rate on our 1 year rate table is from a credit union, Pentagon Federal Credit Union (PenFed), at 1.15 percent with an APY of 1.16 percent. There is a minimum opening deposit of $1,000 for a PenFed account and more importantly, you have to be eligible to join the credit union to open an account.

Ally Bank "No Penalty Certificate of Deposit"


Ally Bank's 11 month "No Penalty Certificate of Deposit" allows you to withdraw the full balance with any interest earned without incurring any penalty. You can do this any time after the first 6 days of funding your certificate of deposit. Most banks charge a penalty for any early withdrawals and most also charge 12 months of interest on a CD account of 1 year or less.

Ally Bank "Raise Your Rate CD"


Since CD interest rates are moving higher, wouldn't it be nice to lock into a higher rate for a longer term right now and still be able to increase the rate in the future? Ally Bank's Raise Your Rate CD gives you the ability to do just that. The Raise Your Rate CD is available in two terms - 2 years and 4 years.

The current rate on the 2 year Raise Your Rate CD is at 1.09 percent with an APY of 1.10 percent. The current rate on the 4 year Raise Your Rate CD is at 1.29 percent with an APY of 1.30 percent. These rates are much higher than the FDIC's current average rates for similar CD terms. The FDIC 2 year rate is at 0.33 percent and the 4 year rate is at 0.58 percent this week.

You're allowed to increase the CD rate once on the 2 year certificate of deposit and twice on the 4 year certificate of deposit. You're able to increase the rate when Ally Bank increases the rate. You can also set up and receive an email alert when rates move higher.

Current Ally Bank CD Rates


Ally Bank offers regular certificate of deposit terms ranging between 3 months and 4 years. The bank also offers jumbo CD products with terms of 3 years, 4 years and 5 years. The highest CD rates right now at Ally Bank are on 5 year jumbo certificates of deposit. The current rate is 1.59 percent with an APY of 1.60 percent. Below is a complete list of Ally Bank CD rates.

Ally Bank CD Rates as of February 10, 2014


Ally Bank Regular CD Rates



  • 3 month CD Rate 0.300% APY 0.300%

  • 6 month CD Rate 0.610% APY 0.610%

  • 9 month CD Rate 0.640% APY 0.640%

  • 1 yr CD Rate 0.990% APY 0.990%

  • 18 month CD Rate 0.940% APY 0.940%

  • 2 yr CD Rate 1.100% APY 1.090%

  • 3 yr CD Rate 1.200% APY 1.190%

  • 4 yr CD Rate 1.300% APY 1.290%

  • 5 yr CD Rate 1.600% APY 1.590%


Ally Bank Jumbo CD Rates



  • 3 Year Jumbo CD Rate 1.19% APY 1.20%

  • 4 Year Jumbo CD Rate 1.29% APY 1.30%

  • 5 Year Jumbo CD Rate 1.59% APY 1.60%


Ally Bank gets really good customer reviews which you can read on their website at ally.com. The bank also offers free tools to help you with your investment decisions, including giving you an overview of setting up a CD ladder and a CD ladder calculator.

MonitorBankRates.com also offers a free CD ladder calculator and a CD calculator to help you figure out your CD investments.
 
Author: Brian McKay
February 10th, 2014