Allan Roth in his CBS MoneyWatch blog post
has a useful table of Ally Bank's 5-year CD with the after-penalty returns for each of the first 12 months and then every 1 year after that. As you can see in the table, this CD quickly beats short-term CDs after just 4 months.
One important downside to Ally's CDs is that they don't allow a partial withdrawal. So it's better to open multiple small CDs. That way you don't have to close the entire CD if you need some money.
Last month I did a new review
of Ally's 5-year CD comparing it to some other top long-term CDs
I first reviewed this 60-day early withdrawal penalty from Ally Bank
just over a year ago.