Ally Bank

It’s not always easy to get the best CD rates when you don’t have a lot of money to deposit. But Ally Bank offers competitive CD rates with no minimum deposit. CD rates are fixed for the full term. Other features of Ally Bank’s certificates of deposit include:

• Daily compounded interest
• No monthly fees
• The ability to withdraw and receive earned interest as income if the bank is notified before the maturity date of the CD or within 10 days after that
• FDIC insured
• Automatic renewal when the CD matures

The best CD rates at Ally Bank, as of July 10, are for terms of five years (3.4% annual percentage yield), four years (2.9% APY), and three years (2.7% APY). But CD rates for one year are 2.1% APY and for 18 months, 2.15% APY. The term and CD rates take affect when a deposit is made.

Ally Bank charges you a fee for withdrawing money from a CD early. The early withdrawal fee for CDs with terms of 12 months or less equals three months’ interest. Early withdrawals from CDs with terms of 18 months or longer result in a fee equal to six months’ interest.

Certificates of deposit can be opened online or by phone. Ally Bank also offers a calculator that shows you how your savings can grow with different CD rates.

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