Investing News

Ally Bank CD Rates: January 2025

5 days ago
13 Views
5 Min Read

Great short-term rates, and no minimum deposit

Fact checked by Michael Rosenston

Kerkez / Getty Images

Kerkez / Getty Images

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 CD 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.

Ally Bank High Yield CD Overview

  • Raise your rate CD: Earn a relatively good 3.4% on a three year or 6 year CD with no minimum balance or deposit. Bump up your rate if it goes up during your term—once for the two-year CD or twice for the four-year.
  • No penalty CD: These 11-month CDs earn 3.75% with no minimum balance or deposit and no penalty for withdrawals after the first six months.

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.

Compare Ally Bank 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.

Ally Bank CDs: Key Features

Pros and Cons of Ally Bank CDs

Pros

  • High customer satisfaction

  • Can get rate CD with rate raising

  • Can get no penalty CD

  • No minimum balance requirement

Cons

  • Online only

  • May find more competitive rates elsewhere

Pros Explained

  • High customer satisfaction: Ally ranked third in JD Power’s 2023 U.S. Direct Banking Satisfaction Survey.
  • Can get rate CD with rate raising: 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.
  • Can get no penalty CD: The No Penalty CD allows you to access your money (plus any interest earned) six days after funding without penalty.
  • No minimum balance requirement: Ally Bank’s CDs do not have minimum balance requirements.

Cons Explained

  • Online only: Ally Bank has no branches, so if you want to do you banking in person, you may want to consider another bank.
  • May find more competitive rates elsewhere: Ally Bank does offer some good rates on its CDs, but by shopping around you can likely find even better rates.

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 ranked third in JD Power’s 2023 U.S. Direct Banking Satisfaction Survey.

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. 

Alternatives to Ally Bank CDs

  • Other high-interest CDs: Check the best CD rates currently available before making a deposit.
  • High-yield savings account: If you want to protect your funds while also earning interest, you can also consider a high-yield savings account.
  • Checking account: A checking account is another option for storing your cash, especially if you don’t want to be subject to withdrawal limits. Some high-interest checking accounts can provide more returns on your cash than traditional checking accounts.
  • Money market account: Money market accounts are similar to savings accounts, though they may also come with check-writing abilities and a debit card. You can often earn a good rate on your savings, but you might have to deal with monthly fees or minimum balance requirements. 
  • I bonds: I bonds from the U.S. government are an investment option for protecting your savings from inflation. I bonds may or may not offer a higher rate than the best CDs. When you invest, you have to commit to leaving your money in the I bond for at least a year.

Frequently Asked Questions (FAQs)

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

We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation.

Newsletter