IRA Raise Your Rate Certificate of Deposit (CD)

 

Features Give your retirement savings a raise

  • No minimum deposit to open
  • Competitive rates
  • Start with a great rate, plus have the opportunity to increase your rate once over the 2-Year term or twice over the 4-Year term if our rate goes up on these CDs
  • Grow your money faster with interest compounded daily
  • Get the best rate we offer on the day you open or fund your IRA CD when you fund within 90 days
  • Available for Roth, SEP and Traditional IRAs. Find the IRA for you
  • Flexible funding options, including rollover to Roth and Traditional IRAs
  • Your deposits are insured by the FDIC up to the maximum allowed by law. Maximize your coverage

Want to know more? Download our Straight Talk Product Guide

Managing your account is easy

Get the service you need, when you need it. Talk to a real person 24/7, and enjoy the convenience of Online Banking and Mobile Banking.

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Rates Get more for your money

We offer rates that are consistently competitive.

See how we compare

2 Year
4 Year
1.20 % APY

Estimate your earnings

Annual Percentage Yield Estimated Earnings for 2 Years Estimated Total Savings

What we're showing you

Our Annual Percentage Yields (APYs) are accurate as of 10/25/2014 . The APYs for other banks are provided by mybanktracker.com and are accurate as of 10/20/2014. The APYs in this table are for the state of California. Not your state?

If you make an early withdrawal, you may pay a penalty. An additional IRS tax may also apply; please consult your tax professional.

Fees No surprises

We don’t charge any maintenance fees for your Ally Bank CD. When your CD matures, you can withdraw your money at no charge during a 10-day grace period. If you decide to renew your CD, don’t do a thing, and we’ll automatically renew it.

Early Withdrawals

Withdrawals before the maturity date are subject to penalties. Partial withdrawals aren’t allowed. Are there exceptions?

If you redeem your CD before the maturity date, the penalty we charge will depend on your CD term (see penalty schedule). How is the penalty calculated?

See the Ally Bank Deposit Agreement for full details on how we calculate the withdrawal penalty.

IRA Raise Your Rate CDs Purchased or Renewed Before 12/07/13

All

60 days of interest

IRA Raise Your Rate CDs Purchased or Renewed on or After 12/07/13
The penalty we charge will depend on your CD term.

2 years

60 days of interest

4 years

120 days of interest

Your withdrawal may be subject to an additional 10% Internal Revenue Service (IRS) tax if it's made before you reach age 59½. You may want to check with a tax professional before making withdrawals from your IRA CD.

Ally Bank It's good to be different

We’re an online bank, which means we don’t have physical bank locations. By eliminating the costs associated with traditional brick-and-mortar banks, we can offer great rates and outstanding customer care.

With Ally Bank, you get everything you expect from a traditional bank and more:

  • Peace of mind. No hidden fees. No maintenance fees. No minimum balance required
  • Raise your rate online. Get convenient alerts to find out when your rates go up, and easily raise your rate on your account dashboard
  • Keep track. Access your account anytime, anywhere with Ally Online & Mobile Banking
  • Ally Ten Day Best Rate Guarantee. When you renew your CD, you automatically get the best rate we offer within 10 days beginning with the CD renewal date. Most banks offer only one rate – the one you get the day you renew.
  • Interest compounded daily. We grow your money faster with interest compounded daily. Many others compound monthly, quarterly, or even annually.

Learn more about the benefits and conveniences of Ally Bank.

24/7

Live customer care
always available

#1

"Best Online Bank" 3 Years in a Row
MONEY® Magazine 2011, 2012, 2013

FAQs We have answers

  • Can I add additional funds to an IRA CD?

    No. You can only make an initial funding deposit into your IRA CD. After you've made an initial funding deposit, you won't be able to add more money until the CD reaches maturity. You'll have a 10-day grace period, starting at the maturity date, to make any changes.

    Annual IRA contribution limits may apply. Consult your tax professional for advice.

  • What happens if the IRA CD rate changes after I open a new account?

    With our IRA High Yield CD and IRA Raise Your Rate CD, you get the best rate we offer on the day you open or fund your IRA CD when you fund within 90 days – whichever is higher. If your CD has not been funded after 90 days, we will close it.

    Our IRA Raise Your Rate CD gives you the option to raise your rate once over the 2-year term and twice over the 4-year term, if our rates on these IRA CDs go up.

    Note: The Ten Day Best Rate Guarantee does not apply when opening an Ally Bank IRA CD. However, at maturity, the Ten Day Best Rate Guarantee is applicable.

  • What types of IRA CDs do you offer?

    Ally Bank offers IRA CD options to meet your needs.

    IRA High Yield CD – Choose terms that range from 3 to 60 months.

    IRA Raise Your Rate CD – You have the option to raise your rate once over the 2-year term and twice over the 4-year term, if our rates on these IRA CDs go up.

  • What is the penalty for an early withdrawal from my IRA CD?

    If you redeem your IRA CD before it matures, a penalty according to the fee schedule below will apply. Please keep in mind that you can only make a full withdrawal from a CD. Partial withdrawals aren't allowed – unless taking a Required Minimum Distribution (RMD).

    CDs Purchased or Renewed Before 12/07/2013
    All CD terms 60 days of interest
    CDs Purchased or Renewed on or After 12/07/2013
    The penalty we charge will depend on your CD term.
    2 years or less 60 days of interest
    3 years 90 days of interest
    4 years 120 days of interest
    5 years or longer 150 days of interest

    This penalty is calculated using the interest method detailed in the Ally Bank Deposit Agreement (PDF). It’s first deducted from the accrued interest and then – if necessary – the principal.

    For our IRA Raise Your Rate CD, the penalty is calculated using the interest rate in effect on your account on the day you request the early withdrawal.

    Exceptions

    We’ll waive the early withdrawal penalty for an IRA CD if the account owner:

    • Passes away
    • Is judged legally incompetent
    • Takes RMD – we’ll waive the early withdrawal penalty for partial withdrawals up to the RMD amount

    Your withdrawal may be subject to an additional 10% Internal Revenue Service (IRS) tax if it’s made before you reach age 59½. You may want to check with a tax professional before making a withdrawal from your IRA CD.

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