Ally Bank Increases 18-Month and 3-Year CD Rates

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Availability: Internet Bank

Ally Bank increased the rates of two of its High Yield CDs today. The rates increases are small, but it’s another positive sign that we may finally be at the start of a rising interest rate environment.

The rates increased by 5 basis points for the top balance tiers ($25k+) of both the 18-month CD (1.35% APY) and the 3-year CD (1.60% APY). Rates for the lower tiers did not change, except for the mid tier ($5k-$25k) of the 3-year CD which increased by 3 basis points to 1.55% APY.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.60*%$25k-Ally BankHigh Yield 3 Year CD
1.35*%$25k-Ally BankHigh Yield 18-Month CD
Accounts mentioned in this post. Rates as of December 1, 2016.

These CDs are also available as IRAs (Traditional and Roth) earning the same APYs, with the same funding requirements.

The early withdrawal penalty (EWP) for the 18-month CD is 60 days of interest, and the EWP for the 3-year CD is 90 days of interest.

Availability

Headquartered in Midvale, Utah, Ally Bank is currently the 3rd largest internet bank and the 22nd largest bank in the country, with assets in excess of $114 billion and over 2.1 million customer accounts. Ally offers its services and product line to individuals 18-years or older, who have a valid Social Security number and a U.S. mailing address. Opening Ally’s CDs can be done online or by phone (877.247.2559).

Bank Overview

Ally Bank (FDIC Certificate # 57803) has an overall health grade of "A+" at DepositAccounts.com, with a Texas ratio of 1.51% (excellent) based on June 30, 2016 data. In the past year, Ally has increased its total deposits by $10.89 billion, an excellent annual growth rate of 17.61%. Please refer to our financial overview of Ally Bank for more details.

How the CDs Compare

Ally Bank’s 18-month and the 3-year CDs are now fairly competitive compared to other internet banks. When compared to the best CDs from easy-to-join credit unions, they are a little less competitive.

When compared to 203 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationally, only eight institutions have 3-year CD rates higher than Ally Bank’s 3-year CD rate. A sample of these are shown below:

Interest RateCD Length of TermCredit Union/Bank
1.85% APY37-Month Special CD ($1k min)RTN Federal Credit Union
1.65% APY3-Year CD ($10k min)Popular Direct
1.60% APY3-Year High Yield CD ($25k min)Ally Bank

When compared to 152 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationally, only nine institutions have 18-month CD rates higher than Ally Bank’s 18-month CD rate. A sample of these are shown below:

Interest RateCD Length of TermCredit Union/Bank
1.60% APY16-Month CD ($250 min)Consumer Credit Union
1.40% APY18-month CD ($10k min)Popular Direct
1.35% APY18-month High Yield CD ($25k min)Ally Bank

The above rates are accurate as of 11/29/2016.

To look for the best CD rates, both nationwide and state specific, please refer to our CD rates table or our Rates Map page.

Comments
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