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Ally Bank CD Review

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  • Financial Rates: 5.0 Star Icon
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  • Variety of Terms: 5.0 Star Icon
  • Opening Required Amount: 5.0 Star Icon
0.65%APY
1 Year CD

Pros:

  • No opening required amount
  • Competitive interest rates on CDs
  • A wide variety of CD terms
  • Ten Day Best Rate Guarantee

Cons:

  • No Penalty CD has a high opening amount
  • Interest earned credited annually
  • Some CDs have tiered interest rates
  • Must withdraw entire amount of No Penalty

What You Need to Know

All Ally high yield CDs do not have a required amount to open the account. You can open each of the CDs with any amount. The Raise Your Rate CDs and the No Penalty CD do not have a set amount required to open.

Ally CDs offer competitive interest rates. The rates are competitive with other online CD accounts. The interest rates for Ally CDs are much higher than typical bank rates.

There are a wide variety of CDs offered through Ally. They offer seven high yield CDs. Those terms range from three months to five years. Ally offers a Raise Your Rate CD. These CDs are available in two-year and four-year terms. They also offer a No Penalty CD. This CD is an eleven-month term.

Ally offers a Ten-Day Best Rate Guarantee for each of the different CDs. When you open your CD, you have ten days. If interest rates go up within that time, so does your interest rate for the CD. The best rate guarantee is also available when you are renewing your CD.

The No Penalty CD has high opening amounts to earn the most competitive rates. Balances under $5,000 earn the lowest rates. To earn the most competitive rate for the CD requires a minimum opening balance of $25,000. Balances over $5,000 but less than $25,000 receive an interest rate between the two rates.

Interest earned from Ally CDs is generally credited annually. If your CD is a one-year term or less, they credit your interest at the CD maturity. If your CD term is longer than one year, they credit your interest at your CD terms year-end. You can make some changes to your CDs through the Ally website.

Some Ally CD accounts have tiered interest rates. To earn the most competitive interest rate for your account requires a balance of $25,000. There is not a required amount to open these CDs, but the higher the account balance, the higher the rate you earn.

The Ally No Penalty CD allows you to withdraw your money anytime after the first six days. You cannot make a partial withdrawal of the funds. If you are going to withdraw the money, you must withdraw the entire CD balance.

Cool Things

Raise Your Rate CDs

The Raise Your Rate CD offers two-year or four-year terms. With these CDs, you have the option to raise the interest rate during the CD term. You can raise the interest rate once during a two-year CD term. With a four-year CD term, you have the option to raise the interest rate twice.

No Penalty CD

Ally offers an 11-month No Penalty CD. This CD has tiered interest rates. To earn the most competitive rate requires an opening balance of at least $25,000. You can withdraw money any time after the first six days of the account being open. There is no penalty for withdrawing the money, but you must withdraw the entire CD balance. You will keep all the interest you earn on the account.

History

Ally started in 1919 in New York City as GMAC. They first helped auto dealers with their financing and inventory demand. By the 1950s they were financing automobiles, locomotives, and appliances. In 1977 Ally financed their 75 millionth automobile.

In 2000 GMAC Bank launched and it was in 2009 that GMAC Bank turned into Ally Bank. The bank was an online bank, and by 2012 there were more than 1 million Ally Bank customer accounts. In 2016 Ally launched the Ally cashback credit card.

Today, Ally offers banking products online, and in 2017 they launched Ally Invest. This is a wealth management and investment program. Ally Bank has over 1.5 million customers and over $100 billion in customer deposits. They are a top 25 U.S. financial holding company and have over $173 billion assets.

Awards and Recognition

  • Best Online Bank by GOBankingRates in 2019
  • Ally CDs ranked among the Best CD Accounts by GOBankingRates in 2019
  • Best Internet Bank by Kiplinger’s Personal Finance in 2018
  • Best Online Bank by Money Magazine in 2018

Giving Back

Ally Financial, Bank of America, and Barings are investing over $70 million in the city of Charlotte, North Carolina. The money is to create more affordable housing in the area. It will help finance below-market loans and assisting affordable housing projects. The money will also help fund grants, and they plan to donate land to help make affordable housing a reality.

In 2018, Ally donated school supplies to help underserved youth in Detroit. Volunteers put together more than 800 backpacks for The Children’s Center. The backpacks consisted of supplies, uniforms, and hygiene products. In 2017 they donated over 1,000 backpacks to students in Charlotte, North Carolina.

Frequently Asked Questions

Is Ally FDIC insured?

Yes. Ally Bank is FDIC insured. The FDIC is an agency of the United States government that protects funds deposited in banks, up to $250,000 per customer, per bank. The money deposited in FDIC insured banks means money is backed by the full faith and credit of the United States government.

How many different terms does Ally offer?

Ally offers seven high yield CD terms. They offer a Raise your Rate CD in two-year and four-year terms. They also offer a No Penalty CD in an 11-month term.

What is the required amount to open a CD with Ally?

There is not a set amount to open the high yield CDs through Ally Bank. But, to earn the best interest rates does require a high balance. The No Penalty CD requires a minimum opening amount of $25,000 to earn the best rate.

How do I deposit money into Ally CDs?

You can transfer money electronically from another Ally account or an external account. You can deposit checks through Ally eCheck Deposit, mail in a check, or through a wire transfer. You can deposit more than one check through the eCheck Deposit. All the checks must be uploaded by 7 p.m. of the day you open the account. The total amount will be added to your Ally CD.

How do I access my money?

Once your CD reaches maturity, you can access your money. You can transfer your money to another Ally account or an external verified account. You can request Ally send you a check. You can plan what happens to your CD up to one year before the maturity date through the Ally website.

Do I have to open other Ally accounts before I can open a CD?

No. You can open only a CD without opening other Ally accounts first.

Do Ally CDs offer competitive interest rates?

Yes. Ally Bank CDs offer competitive interest rates. The rates are competitive with other online accounts. They are much higher than typical bank rates.

Can I choose how to receive my interest payments from Ally CDs?

Yes. You can choose how your interest is credited. Make those changes through online banking on the Ally website.

What percentage am I charged if I withdraw money before the maturity date?

For CD terms under two years, the penalty is 60 days of interest. The penalty for five-year CDs is 150 days of interest. The other CD terms vary depending on the term length. But the penalty is between 60 and 150 days of interest.

How do I make changes during the grace period?

You can set up what happens to your CD online through the Ally website. You can make changes to your accounts or make a deposit during the grace period.

How will I know my Ally CD is nearing maturity?

You can contact customer service to find out. You can also log on to the Ally website to decide what happens to your CD at maturity.

How long is the grace period between renewal?

The grace period is ten days.

Are Ally CD rates guaranteed for the entire term?

Ally offers fixed interest rates. They look for the highest rate during the first ten days of the account being open. After those ten days, the rate received is the rate you earn for the life of the CD term. The Raise Your Rate CD allows for one or two rate increases, depending on the term you open.

Does Ally offer mobile banking?

Yes. With the mobile app, you can make deposits, transfer money, find ATMs. You can view your account balance and account history through the app.

Is Ally a good bank?

The interest rates are competitive. They offer a good variety of CD terms including a Raise Your Rate CD and a No Penalty CD. There are no required amounts to open Ally CD. But, to get the highest interest rates requires a large account balance.

Is Ally secure online?

Ally offers firewalls and Secure Socket Layering systems. Customers can download free anti-virus and anti-malware software. They offer account monitoring and security guarantee. Customers are not held responsible for unauthorized transactions reported within 60 days.

What is the shortest Ally CD term offered?

The shortest term is a three-month term.

What is the longest Ally CD term offered?

The longest term available is the five-year CD.

Does Ally offer accounts other than CDs?

Yes. Ally offers a wide variety of other accounts. Those include checking, saving, and money market accounts. They offer credit cards and loans as well.

Can I use Ally CDs for my business accounts?

No. Only personal deposit accounts are available.

How do I reach customer service?

Contact customer service through phone, email, mail, or online chat. You can follow Ally on Facebook, Twitter, YouTube, Google Plus, and LinkedIn.

Bank Contact Information

Ally Bank Customer Care
P.O. Box 951
Horsham, PA 19044
1-877-247-2559

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