Ally Bank CD Rates: Comparing Options
Ally Bank offers three different certificates of deposit with some of the best CD rates available online. The current CD products include Ally Bank's High Yield CD, No Penalty CD, and Raise Your Rate CD. The rates and yield you earn on Ally's CDs vary but mostly depend on the term of the CD. The shortest-term CD, 3 months, currently has a yield of 0.75 percent while the longest-term CD, 60-months, has a yield of 2.15 percent.
One nice feature about CD at Ally Bank is they offer their "Ten Day Best Rate Guarantee." The rate guarantee basically allows you to get a better rate within 10 days of opening your account if rates move higher. Another nice feature about the CD accounts is interested is compounded daily, giving you an overall higher APY. There is no minimum opening deposit for an Ally Bank CD account, but you can earn a higher rate and yield with a higher deposit amount.
High Yield CD Rates
Ally Bank's High Yield CD are regular CD account that has a fixed term and interest rate until the CD account matures. As you can see from in the table listed above there are terms available between 3-months and 60-months. These rates are the highest rates offered but have less features than Ally's No Penalty and Raise Your Rate CDs.
As with regular CDs, Ally's High Yield CDs are subject to early withdrawal penalties. The penalty amount always depends on the term of the CD account. Shorter-term CDs have lower penalties and higher-term CDs. The penalties on High Yield CDs range from 60 days to 150 days of interest earned.
No Penalty CD
The No Penalty CD only has one CD term available which is 11 months. As the CD name suggests, there is no penalty if you decide to cash your CD in before the 11-month term is up. Having this option is a nice feature if you need access to your money before the CD matures. The No Penalty CD has a higher CD yield than short-term High Yield CDs. When compared to a 12-month High Yield CD the rate is only 10 basis points lower ($25,000 min deposit).
Again, this No Penalty CD is geared towards people who want to earn a higher yield than a savings account but have the flexibility of having access to funds early if needed.
Raise Your Rate CD
With the Raise Your Rate CD you have the ability to increase your rate during the CD term, once for a two-year term and twice for a four-year term. Of course, to have this option rates would have to go up in general, you can't just decide you want a higher rate.
The current yield on these Raise Your Rate CD accounts are slightly better than the comparable term High Yield CD. There are early withdrawal penalties, the 2-year term has 60 days of interest penalty and 4-term has 120 days of interest penalty. Partial withdrawals aren’t allowed.