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


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.

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.


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, 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 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 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.

Ally Bank Offers Another Limited-Time Select CD
Availability: Internet Bank

It’s not only Columbus Day, but it’s also National Online Bank Day. This was a day that Ally Bank first promoted last year to highlight the benefits of internet banks. Most brick-and-mortar banks are closed for Columbus Day, but many internet banks (including Ally) are open with customer service taking calls.

To celebrate the occasion, Ally Bank is offering a new Select CD, which features a limited time promotional rate and term (1.25% APY 15-month).

Features of this 1.25% APY 15-month Select CD include :

    Promotional rate and term...

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Ally Bank Adds Limited-Time 30-Month Select CD
Availability: Internet Bank

It’s Labor Day Weekend – summer is winding down, the now-downgraded Hurricane Hermine is somewhere in the Atlantic, college football season has begun. In other words, I really wasn’t expecting any good deals to pop up during this holiday weekend; I was wrong.

DA’s guest contributor, Charles Rechlin (aka ChasR) posted in the Forum about Ally Bank’s (Ally) limited-time 30-month Select CD (1.50% APY).

I did a Live Chat to confirm the details and learned that:

    The 30-month Select CD is available through September 15, 2016.

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Ally Bank’s New Cash Back Credit Card

Ally Bank has just introduced its first credit card. It’s a cash back credit card in which Ally Bank deposit customers can earn a bonus cash back rate. The cash back percentages are nice, but I wouldn’t call them great. If you’re active with cash back credit cards, this new Ally credit card probably won’t excite you. Nevertheless, it’s nice to see this new offering from Ally Bank. For those who prefer to keep things simple with all of their banking needs at one bank, this new credit card makes...

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