An In-Depth Review of Ally Bank’s Rates

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Updated on Tuesday, September 1, 2020

Ally Bank CD Rates

Interest Checking Account Ally Bank’s CD features three products: the High Yield CD, the Raise Your Rate CD and the No Penalty CD. The APYs currently available range from 0.20% to 1.00%, depending on your opening deposit and term length. All accounts have no minimum balance requirement, though rates will vary depending on the term and amount deposited.

All of Ally Bank’s CDs have a Ten Day Best Rate Guarantee. If their rate goes up within 10 days and you make a deposit within 10 days of account opening, you may get the better rate. This rate also applies when you renew your CD account. Interested is compounded daily with all accounts and your account will be automatically renewed when your CD matures. If you choose to close a CD account, you have a 10-day grace period after the maturity date.

Ally Bank’s CD rates are lower than some of its competitors. You can easily find a 12-month CD at 1.65% APY and three-year at 2.00% APY with only a $500 minimum, as of the date of publishing this review. Other banks also offer higher APYs but require minimum deposits, often $2,000.

High Yield CD Rates

 

Up to $5K

$5K-$25K

$25K+

3 months

0.20% APY

0.20% APY

0.20% APY

6 months

0.40% APY

0.40% APY

0.40% APY

9 months

0.50% APY

0.50% APY

0.50% APY

12 months

0.75% APY

0.75% APY

0.75% APY

18 months

0.75% APY

0.75% APY

0.75% APY

3 years

0.75% APY

0.75% APY

0.75% APY

5 years

1.00% APY

1.00% APY

1.00% APY

The High Yield CD is more a traditional CD featuring a fixed term and interest rate until maturity. You can choose terms anywhere from 3 months to 5 years, with varying APYs. This type of CD has the highest rates compared with the Raise Your Rate and No Penalty CD. The best rate is 1.00%  APY for a five-year term, with no minimum deposit.

With the High Yield CD however, you are subject to an early withdrawal penalty. The penalty charged depends on your CD terms. Usually the longer the term, the more interest you’ll be charged. Currently, the maximum you may be penalized is 150 days of interest. If the interest you’ve earned so far is less than the penalty, the rest will be deducted from the balance in your CD.

Raise Your Rate CD

Term

APY

2 years

0.75% APY

4 years

0.75% APY

The Raise Your Rate CD gives you the option to raise your rate during your term, once for a two-year term, and twice for the four-year term. You’ll get the opportunity to do so if the rate goes up and your balance tier increase. Currently, the APY is lower than the High Yield CD, which could mean that you earn less in interest.

Like the High Yield CD, you will also be subject to early withdrawal penalties. For a two-year term, you’ll be charged 60 days interest; it’s 120 days of interest for the four-year term. Like the High Yield CD, the penalty may de deducted from your CD’s balance if the interest you’ve earned is lower than the penalty amount.

You also cannot make partial withdrawals.

No Penalty CD

 

Up to $5K

$5K-$25K

$25K+

11 months

0.60% APY

0.60% APY

0.60% APY

The No Penalty CD is only offered for 11 months. This type of CD may be suitable for those who may want to withdraw their money before the term is up — for instance, in an emergency or when you reached your short term savings goal. Compared with the High Yield CD, the APY is higher when looking at the shorter terms, which max out at 0.60% APY for a nine-month term with a minimum deposit of $25,000.

There is no penalty for withdrawing your money early, after the first six days. However, if you don’t plan on withdrawing your money for a few years, you may want to consider the other two options for higher interest rates.

Ally Bank Checking and Savings Rates

Ally Bank Savings Account

APY

Minimum Amount to Open

Monthly Fee

0.60% APY

No minimum

none

There are virtually no fees with an Ally Bank savings account, no minimum balance requirements and high interest rates. You can access funds online or via their app by making an ACH transfer (wire transfers are subject to a fee) or by requesting a check. You can make deposits either with an ACH transfer or via Ally eCheck DepositSM.

However, you do not get a debit card with a savings account, meaning you cannot deposit or withdraw cash from your account. You’re also limited to six withdrawals per statement cycle, although you can make unlimited deposits. If you make more than six, you’ll be charged $10 per transaction. Other fees include overdraft fees, cross border transactions, expedited delivery and returned checks.

Other online banks listed on our site have higher APYs as high as 1.30%, as of time of publishing, with no minimums and monthly fees. However, not all banks offer a mobile banking option.

Ally Bank Checking Account

APY

Minimum Balance Amount

Minimum Amount to Open

Monthly Fee

0.10%

none

none

none

0.25%

$15,000

none

none

Ally Bank’s interest checking account gives you access to online bill pay, transfers between bank accounts, an option to send money to others, as well as free checks and a debit card. There are no minimum amounts to open an account but you’ll get a higher APY if you can keep your minimum balance at $15,000. Compared with other banks, their APY is on the low end.

But, as previously noted, if your minimum balance amount is greater than $15,000, Ally Bank will offer a better rate.

You can send money to friends and family with Popmoney®. All you need is the person’s mobile number, email address or bank information, and funds will be transferred via Ally Bank’s app or online. If you link your account to a savings account, you can get free overdraft protection. And you can make unlimited transactions, unlike with the online savings account.

In addition to online transfers, you also get a MasterCard® debit card. Although you cannot make cash deposits, you can easily withdraw cash from any ATM. There are no fees if you take money out from any AllPoint ATM in the U.S. For other domestic ATMs, you’ll get reimbursed a maximum of $10 per statement cycle.

However, if you use your debit card outside the U.S., you’ll be charged a 1% transaction fee. If you want same-day or overnight bill pay, you’ll be subjected to a fee. Other fees include stop payments, rush delivery (debit card/checks) and returned deposits.

Ally Bank Money Market Account Rates

Ally Bank Money Market Account

APY

Minimum Amount to Open

Monthly Fee

0.50% APY

none

$0

Ally Bank’s money market account rate isn’t the greatest rate you’ll find out there by a long shot — you can easily find rates as high as 1.30% APY elsewhere, as of date of publishing. You can even score a better rate by parking your cash in a regular Ally Bank savings account, which earns 0.60% APY.

Still, Ally Bank’s Money Market Account has some useful features. You get a free debit card and checks with a money market account. There are no fees if you withdraw cash from any Allpoint ATM, but you will be reimbursed up to $10 per statement cycle for fees charged at other cash machines nationwide. You’re also limited to six transactions per statement cycle like the online savings account, though you get unlimited ATM withdrawals.

Ally Bank IRA CD Rates

Ally Bank’s IRA CDs come in terms from three months to five years. Accounts are available as a Traditional, Roth of SEP IRA and interest is compounded daily. When the IRA CDs mature, you have a 10-day grace period to withdraw your money or it’ll be automatically renewed. You also have the option to do a rollover to Traditional or Roth IRAs. Both IRA CDs will offer the best rate within 90 days after account opening, or when you fund your account.

As listed on our site, other banks offer higher rates, some as high as 1.62% APY with a $5,000 minimum, as of date of publishing. However, there are no minimums at Ally Bank.

IRA High Yield CD Rates

 

Up to $5K

$5K-$25K

$25K+

3 months

0.20% APY

0.20% APY

0.20% APY

6 months

0.40% APY

0.40% APY

0.40% APY

9 months

0.50% APY

0.50% APY

0.50% APY

12 months

0.75% APY

0.75% APY

0.75% APY

18 months

0.75% APY

0.75% APY

0.75% APY

3 years

0.75% APY

0.75% APY

0.75% APY

5 years

1.00% APY

1.00% APY

1.00% APY

The High Yield CD IRA is best for those looking for a short-term option or seeking a higher rate for longer terms. The highest rate offered is for the five-year term with no minimum deposit. For those interested in creating CD Ladders, this type of account offers an excellent opportunity.

However, there are early-withdrawal penalties which vary depending on your CD IRA terms. You’ll be charged more the longer the term. The minimum you’ll be charged is 60 days of interest with a IRA 18 months or less, and 150 days of interest with terms longer than 48 months. Usually the longer the term, the more interest you’ll be charged. Currently, the maximum you may be penalized is 150 days’ interest.

IRA Raise Your Rate CD

Term

APY

2 years

0.75% APY

4 years

0.75% APY

The Raise Your Rate CD IRA gives you the chance to increase your rate if your balance tier or the rate for your term increases. You can do this once for a two-year term account and twice or a four-year account. This account is best for those who believe interest rates will go up.

There are no minimums with this account but you may be subject to a maximum amount depending on the type of IRA you choose. You’re also subject to early-withdrawal penalties. A two-year IRA will be charged 60 days of interest; it’s 120 days for a four-year account. If you’re under the age of 59.5, you may also have to pay another 10% to the IRS.

Ally Bank IRA Online Savings Account

APY

Minimum Amount to Open

Monthly Fee

0.60% APY

none

none

The rate for the IRA Online Savings is variable, meaning it may change after you open an account. Though the rate is lower compared with the other IRA options, you’re not subject to an early-withdrawal penalty, though the IRS may tax you if you’re under 59.5.

If you do make early withdrawals, you’re only allowed a maximum of six per statement cycle. You get charged $10 for each transaction over that amount. To access your money, you’ll need to request a distribution.

Conclusion

You don’t need to rely on your brick-and-mortar bank for competitive rates, products and customer service. Ally Bank provides products at competitive rates, with convenient access via their mobile app or online portal.

Ally Bank’s no-minimum opening deposits and fees make it more accessible to everyone. Its online accounts for checking and savings cover all the basics, and with no maintenance fees.

Because there are a growing number of alternative online banks these days, it’s important to compare rates at a number of banks to find your best option. Depositaccounts.com, also owned by LendingTree, is a great research tool you can use to compare rates easily online.

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