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Ally Bank Certificates of Deposit Review and Rates
 

Ally Bank Certificates of Deposit Review and Rates

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Ally Bank's certificates of deposit come in three flavors and all have some of the highest CD rates available right now. Ally offers regular CD accounts that have the traditional fixed CD rate until the maturity date. Regular certificates of deposit are currently available in terms of 3 months to 5 years.  Right now the best CD rates deal is on Ally's 12 month certifcates of deposit with a current rate of 1.03 percent with an APY of 1.04 percent.

The next type of certificate of deposit is Ally's No Penalty CD. With this type of CD you are allow to take a penalty-free early withdrawal any time during the CD term as long as it is after the first 6 days when the CD account is funded. This type of certificate of deposit is only available in an 11 month term. Current CD rates on this No Penalty CD are at 0.94 percent with an APY of 0.94 percent.

The No Penalty CD is a good way to lock in a higher rate than typical savings account rate or money market account rate with still having the ability to withdrawal your money at anytime without paying a penalty. The typical early withdrawal penalty on a 1 year certificate of deposit is 6 months to 12 month interest earned, basiscally any interest earned is taken away.

The last type of certificate of deposit offered at Ally Bank is their Raise Your Rate CD. There are other banks offering this type of CD account which might also be referred to as a Bump-Up certificate of deposit. At Ally Bank this CD is available in terms of 2 years and 4 years.

The 2 year certificate of deposit term allows you to raise your CD interest rate once after opening the CD account if Ally raises the 2 year CD rate. The 4 year certificate of deposit allows you to raise your rate two times if Ally Bank increases the 4 year CD rate at any time after you open the account.

With the highest CD rates right now so low it's more than likely CD rates will move higher in 2 years to 4 years so this type of CD which already has one of the best rates for the term can be a good investment if rates move higher in the future. The alternative is to close the certificate of deposit early and pay a penalty which can run over a year's interset on a 2 year CD or 4 year CD.

The current 2 year Raise your Rate CD rate is at 1.13 percent with an APY of 1.14 percent. The 4 year CD rate is at 1.43 percent with a 1.44 percent APY. These rates are considerbly higher than the FDIC's national average rates and are some of the highest CD rates available in general.

Here is a complete list of current regular CD rates at Ally Bank:

  • 3 months CD Rate 0.39% APY 0.39%

  • 6 months CD Rate 0.75% APY 0.75%

  • 9 months CD Rate 0.74% APY 0.74%

  • 12 months CD Rate 1.03% APY 1.04%

  • 18 months CD Rate 0.94% APY 0.94%

  • 3 years CD Rate 1.29% APY 1.30%

  • 5 years CD Rate 1.68% APY 1.69%


Opening and funding a certificate of deposit at Ally Bank is very easy. If you're not comfortable opening an account online you can download the application and send it in via regular mail. To open a CD account at Ally visit the bank's website here: Ally Bank Certificate of Deposit Application.

To see how Ally Bank CD rates compare with other CD rates at banks feel free to use your rate list. We list the highest CD rates at banks ranging between 1 month and 5 years.

Author: Robert Till
September 12th, 2012