Ally Bank is now making use of its new rate tiers for some of its CDs and IRA CDs. There were a few CD rate increases at Ally today, and most of the rate increases were associated with the new top tiers that require minimum deposits of $5,000 and $25,000. The savings account, money market account and some of the CDs continue to have just one rate for all balances. It’s nice to see that the new tiers are only resulting in higher rates.
Ally notified customers last month that it was implementing new balance tiers effective November 7th on its savings accounts, money market accounts and CDs. Until today, the rates were the same for all balances.
Below is a list of the CDs which now have higher rates on the top rate tiers. Note, the 18-month CD had the largest rate increases. For a minimum deposit of $5,000, the rate increased from 1.19% to 1.25% APY, and for a minimum deposit of $25,000, the rate increased from 1.19% to 1.30% APY. The 1.30% APY is now quite competitive for an 18-month CD.
|1.55*%||$25k||-||Ally Bank||High Yield 3 Year CD|
|1.30*%||$25k||-||Ally Bank||High Yield 18-Month CD|
|0.69*%||$25k||-||Ally Bank||High Yield 9-Month CD|
|0.67*%||$25k||-||Ally Bank||High Yield 6-Month CD|
|0.39*%||$25k||-||Ally Bank||High Yield 3-Month CD|
The same rates currently apply to Ally’s IRA CDs.
The 2-year Raise Your Rate CD also had a rate increase, but it was small (1.29% to 1.30% APY). For this 2-year CD, the new rate applies to all balances. If you currently have a 2-year Raise Your Rate CD, you may want to consider using your raise-your-rate option. Not only should you consider the amount of the rate increase, but also the remaining time before maturity.
Even though Ally’s CD rates are not always the best, they do have many nice features such as Ally’s Ten Day Best Rate Guarantee and below-average early withdrawal penalties. Below is an overview of Ally’s early withdrawal penalties:
- 3, 6, 9, 12, 18 and 24 month CDs – 60 days of interest
- 3-year CDs – 90 days of interest
- 4-year CDs – 120 days of interest
- 5-year CDs – 150 days of interest
For more details about the early withdrawal penalties and other CD terms and conditions, please refer to Ally’s "Straight Talk Product Guide". I have more details on these guides in this post.
Headquartered in Midvale, Utah, Ally Bank is an internet bank that offers its product line to everyone who has a Social Security number, a US mailing address and who is at least 18 years old.
Ally Bank has an overall health rating of "A+" at DepositAccounts.com, with a Texas Ratio of 1.49% (excellent), as of September 30, 2015 data. In the past year, Ally Bank has increased its total deposits by $7.12 Billion, an excellent annual growth rate of 12.53%. It’s one of the largest US internet banks with total deposits of $61.84 Billion as of June 30, 2015. Please refer to our financial overview of Ally Bank for more details. The bank has been a FDIC member since 2004 (FDIC Certificate # 57803).
How the CDs Compare
Ally Bank’s 18-month CD is now the most competitive of its CDs. Thus, I’ll just compare Ally’s 18-month CD with other similar CDs. When compared to the 103 similar length-of-term CDs tracked by DepositAccounts.com that require a similar deposit and are available nationally, Ally Bank’s 18-Month CD currently ranks sixth.
The above rates are accurate as of 11/30/2015.
To search for nationwide CD rates and CD rates in your state, please refer to the CD rates section of DepositAccounts.com.