Ally bank cd calculator -
Ally Bank boasts many different types of bank accounts, including savings accounts, checking accounts, a money market account and individual retirement accounts (IRAs). One of Ally's strongest offerings, though, is its wide variety of certificates of deposit (CDs). Having a number of CD choices allows you to save for specific goals, from your child's college tuition to an emergency or vacation fund. You can only access these CDs and all other Ally accounts through the bank's online and mobile platforms, as this is a completely branchless bank.
There are three types of proprietary CD accounts available through Ally. These are called the High Yield CD, the Raise Your Rate CD and the No Penalty CD. Each Ally CD compounds interest daily, which can allow your interest to grow marginally faster than an account that compounds monthly.
Prospective customers will also benefit from the "Ally Ten Day Best Rate Guarantee." With this, you’re guaranteed the most favorable rate for your term and balance tier if Ally's rate changes during the 10-day window after your account's open date. This also applies when you renew a CD.
No Ally CD accounts charge a monthly maintenance fee. You can face penalty fees for early withdrawals with the High Yield CDs and the Raise Your Rate CDs, however. If you want to make a withdrawal, you’ll have to wait for the account’s maturity date. Following that time, there’s a 10-day grace period during which you can withdraw your money without incurring charges. Should you desperately need to make an early withdrawal, you’ll lose much of the interest the account earned.
For terms up to 24 months, you’ll lose 60 days of interest if you withdraw your funds early. Three-year terms lose 90 days of interest, four-year terms lose 120 days of interest and terms of five or more years lose 150 days of interest. Of course, the exception here is the 11-month No Penalty CD, which won’t penalize you for early withdrawals.
Ally High Yield CD Rates
When you open an Ally Bank High Yield CD, you’ll have access to seven term lengths. Your interest rate will depend on the account’s term length, with rates increasing as the terms do. There are no minimum opening deposit requirements for these CDs.
|Ally High Yield CD Rates|
|3-Month||All balances: 0.15% APY|
|6-Month||All balances: 0.20% APY|
|9-Month||All balances: 0.30% APY|
|12-Month||All balances: 0.55% APY|
|18-Month||All balances: 0.60% APY|
|3-Year||All balances: 0.65% APY|
|5-Year||All balances: 0.80% APY|
Ally Raise Your Rate CD Rates
The Ally Raise Your Rate CD comes in either a two- or four-year term. Both accounts have the same APY. There are no balance tiers here, so a higher deposit won’t earn you a better rate. This means that each account will have earned the same amount of interest on the same size deposit after two years.
However, as the name suggests, you are able to raise your account’s interest rate over the course of its term. When interest rates go up, Ally will let you know with a message at the top of your Account Details page and/or with custom alerts. All you need to do is request a rate increase through your account, online chat or by calling the bank.
Both of Ally's Raise Your Rate CDs do not have minimum opening deposit.
|Ally Raise Your Rate CD Rates|
|2-Year||All balances: 0.55%|
|4-Year||All balances: 0.55%|
Save more with these rates that beat the National Average
Ally No Penalty CD Rates
The Ally No Penalty CD only comes in an 11-month term. This CD earns interest according to three balance tiers. Again, that means higher balances can earn you more favorable interest rates. This CD account offers more flexibility when it comes to accessing your funds because there is no penalty charge for withdrawing your money early. It allows you to withdraw your full balance and interest at any time after the first six days you have the account.
Ally's lone No Penalty CD offers deposit-based APY tiers, with deposits over $25,000 earning the top rate. You're allowed to open one of these accounts with any amount of money, though.
|Ally No Penalty CD Rates|
|CD Term||Less than $5,000 Opening Deposit||$5,000 Opening Deposit||$25,000 Opening Deposit|
|11-Month||0.50% APY||0.50% APY||0.50% APY|
Compare Ally Bank to Other Competitive Offers
Compare Ally Bank to Other Competitive Offers
How Much You Could Earn With an Ally Bank CD
With some of the best CD rates on the market, Ally Bank CDs earn well across the board. The High Yield CDs and No Penalty CDs earn according to balance tiers, which means you stand to earn at a higher rate with a higher deposit.
Longer CD terms typically carry higher interest rates. For example, the longest term, 60-month CD earns at an APY of 0.80%, while the shortest term of three months earns at 0.20% APY. However, there are other factors besides interest rates to consider. It’s important to open CDs according to your savings goals. If you have both short-term and long-term goals or need continuing income, it can help to ladder your CDs. This means opening up multiple CDs at a time, each with a different term length. That way, you can grow your money and then withdraw the funds at different times.
Ally Bank compounds interest daily, meaning the interest you earn then earns interest in turn. Essentially, the interest you earn today will earn interest tomorrow, that combined interest will earn more the next day and so on. Many other banks compound interest on their savings accounts monthly or quarterly, which slows your money’s growth from daily to every month or every three months.
The table below outlines what your earnings could look like according to specific accounts and interest rates. The amounts given would be your final balances, not how much extra interest you would earn. For accounts that earn on balance tiers, the lowest tier rate was used.
|Ally Bank CD Earnings|
|Initial Deposit||3-Month CD||12-Month CD||3-Year CD||4-Year Raise Your Rate CD|
How Ally CD Rates Compare to Other Banks
Ally Bank offers some of the highest rates when it comes to savings accounts, including CDs. As you can see in the table below, its rates aren’t necessarily at the very top, although they typically compete with some big names in the financial world, like Capital One and Marcus by Goldman Sachs.
What Ally can offer that many of its competitors don’t is the ability to earn according to balance tiers on certain accounts. The rates you see below for Capital One and Marcus apply to all balances, while Ally (in some cases) offers more favorable rates to those with larger amounts of money.
|Ally Bank CD Rates Comparison|
|CD Term||Ally Bank||Capital One||Marcus by Goldman Sachs|
Should You Get an Ally Bank CD?
All signs point to an Ally Bank CD being an excellent account option. You can earn at some of the best CD rates in the industry with interest compounded daily. This means you get to boost your savings a little bit more than with a competitor. Plus, this is true no matter which CD you choose to open.
Ally Bank CDs can help you save toward both short-term and long-term savings goals with its variety of term lengths. Its three account types also give you differing savings opportunities. If you want to stick to the typical CD structure, you can open a High Yield CD (or two or three, etc). If you’re holding out hope for an interest rate raise, you can open a Raise Your Rate CD which gives you the opportunity to change your rates during your term. Or if you want to open a CD but you’re worried about early withdrawal penalties, you can choose a No Penalty CD so you can more freely make withdrawals.
Just remember that Ally Bank doesn’t have any physical branches you can visit to open or manage an account. You’ll have to be comfortable managing your money virtually to take advantage of Ally’s excellent rates.
Raise Your Rate Certificate of Deposit (CD)
if you think our cd rate is set in stone you've been living under a rock.
No minimum deposit to open
Give yourself a raise.
Great rates and simple online CD management. It's a match made in heaven.
We reward you when you renew.
We’re currently giving a 0.05% Loyalty Reward when you renew your CD to any CD with us. Check back 30 days before your CD matures to see what the reward is at that time.
If our rate goes up, you can raise yours.
There’s no minimum deposit required to open your account, and you’ll always start with a great rate. Plus, you’ll have the opportunity to raise it once for the 2-Year term or twice for the 4-Year term, if our rate goes up for your term and opening balance amount. Interest is compounded daily.
Manage your CD online.
We make it easy to manage your CD online. When it’s time to renew, don’t do a thing and we’ll renew it automatically.
Features offered with every Ally Bank CD.
Digital banking tools.
It’s easy to bank anytime, anywhere with the Ally Mobile app.
Your money, FDIC-insured.
Deposits are insured by the FDIC up to the maximum allowed by law.
No monthly maintenance fees.
Don’t expect any sneaky monthly maintenance fees with us.
Open in the name of a trust.
Offer flexibility and security for the ones you care about most.
Up your saving strategy with a CD ladder
See how combining short-term and long-term CDs can help you maximize your earning potential and save smarter.
Get more for your money.
Compare the cost of banking somewhere else.
What you should know.
Our Annual Percentage Yields (APYs) are accurate as of . The APYs for other banks are provided by mybanktracker.com and are accurate as of . The APYs in this table are for the state of California.
The APY we pay is based on your opening deposit amount. Advertised APYs are subject to change.
No hidden fees, no surprises.
You shouldn't be nickel and dimed for using your own money.
We don’t charge any maintenance fees for your Ally Bank CD.
When your CD matures, you can withdraw your money at no charge during a 10-day grace period.
Withdrawals before the maturity date are subject to penalties. Partial withdrawals aren’t allowed. Are there exceptions?
Early withdrawal penalties will depend on your CD term.
Bank better, starting now.
It only takes a few minutes to open an account.
1. Tell us about yourself.
We'll need some personal details like your address, contact information and social security number.
2. Fund your account.
There’s no minimum amount to open an account, but the faster you fund, the sooner you’ll earn interest.
3. Enjoy our award-winning experience.
Get online access right away and explore everything we offer as well as other ways we can help you reach your goals.
Build a better financial future.
Whether you’re just starting out or nearing retirement, we’ve got resources and tools to help you at any life stage.
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People like it here. We think you will, too.
You don't have to do anything to get the loyalty reward.
It's automatically added when your CD, including IRA CDs, renew. Want to change terms? No problem. Your loyalty reward will be added to any term you choose for your CD, including IRA CD, at renewal. Check back 30 days before your CD matures to see what the reward is at that time.
To change terms or add funds online: Log in, choose Manage CDs. From there, you can make changes or add funds to your balance.
To change terms or add funds from the Ally Mobile App: Log in, choose after the Current Balance, select Manage CDs and then choose Make Changes.
There are no fees to open or obtain the APY on a certificate of deposit.
There's no minimum deposit to open a CD, but you may get a higher rate with a higher opening deposit.
We'll let you know when you can raise your rate by displaying a message at the top of your Account Details page. You can set up a custom rate alert in online banking.
If the current rate we offer for your term and balance tier is higher than your interest rate and you're eligible for a rate increase, you can raise your rate in one of the following ways:
- Log in to online banking and raise your rate on your account details page
- Chat with us online
- Call us at 1-877-247-2559
Once we receive your request, you'll get the highest rate we offer for your term and balance tier that day, and your new rate will go into effect the next business day. There's no fee to request this rate increase.
The penalty depends on your term.
For all CDs purchased or renewed before 12/7/2013, this table shows the penalty you could be charged, depending on your CD term, if you withdraw from your CD early.
All CDs Purchased or Renewed Before 12/07/2013 All CD terms 60 days of interest
For all CDs purchased or renewed on or after 12/7/2013, this table shows the penalty you could be charged, depending on your CD term, if you withdraw from your CD early.
CDs purchased or renewed on or after 12/07/2013, the penalty depends on your term. 24 month or less 60 days of interest 25 month - 36 month 90 days of interest 37 month - 48 month 120 days of interest 49 month or longer 150 days of interest 11 month (No Penalty CD) You can withdraw funds any time after the first 6 days from funding.
The penalty is calculated using the interest method detailed in the Ally Bank Deposit Agreement (PDF). It's first deducted from the accrued interest and then, if necessary, the principal. Keep in mind, you can't make a partial early withdrawal.
For Raise Your Rate CDs, the penalty is calculated using the interest rate in effect on your account on the day you request an early withdrawal.
If the account owner passes away or is judged legally incompetent, we'll waive the early withdrawal penalty.
To make an early withdrawal, log in to online banking and choose Manage CDs to select Early Withdrawal.
No. Once you open and fund your CD, you can't add funds again until your CD matures, but you can schedule a transfer up to one year before the maturity date. When your CD matures, you'll have a 10-day grace period -- starting on your maturity date — to transfer funds or make other changes.
To add funds to your CD online: Log in and choose Manage CDs.
To add funds to your CD from the Ally Mobile App: Log in, choose after the Current Balance, select Manage CDs and then choose Make Changes.
If you schedule a transfer prior to maturity, we'll usually initiate that transfer on your maturity date. You can transfer money from another Ally Bank account, Ally Invest account or a verified account you have at another institution.
We offer a variety of CD options to meet your needs:
High Yield CD – terms range from 3 to 60 months.
Raise Your Rate CD – 2- and 4-year terms available. Start with a great rate, plus have the opportunity to increase your rate once over the 2-year term or twice over the 4-year term if our rate for your term and balance tier goes up.
No Penalty CD – 11-month term that allows you to withdraw all of your money any time after the first 6 days following the date you funded the account, and keep the interest earned with no penalties.
Select CD - Occasionally we'll offer a promotional term that features all the benefits of a high-yield CD, but is available for a limited time.
(April 14, 2008). How do money market accounts work? Retrieved July 15, 2019 from https://money.howstuffworks.com/personal-finance/financial-planning/money-market-accounts1.htm