Longer-term certificates of deposit (CDs) generally mean higher annual percentage yields (APYs) and decreased flexibility of access. For example, 2-year CD rates tend to be higher than 1-year CD rates, but if you need to make an early withdrawal, you may have to pay a penalty. So the debate about whether to opt for longer-term CDs essentially comes down to whether you:

  • Can afford to be without access to your money for the term of the CD, unless you're willing to pay an early withdrawal penalty.
  • Want to secure a rate for a given term, knowing that you may miss out on a potentially better rate during the CD's term.

You might not know that among FDIC-member banks, online banks tend to have higher rates than those traditional banks offer. At Ally Bank, we don't have the overhead costs associated with brick-and-mortar banks and we're able to pass that savings on to customers in the form of great rates. In fact, according to rates published by Bankrate, our 2-year CD rates are some of the most competitive in the country. Take a look what Ally Bank has to offer:

  • High Yield CDs You can open and fund an Ally Bank High Yield CD with any amount: Some banks only offer their best rates to depositors who make a large deposit and commit to a longer term, but we consistently offer great CD rates, regardless of how much you deposit.
  • Raise Your Rate CDs: With these CDs, you have the option of a one-time rate increase if our 2-Year CD rate goes up; you have the option to increase your rate twice (two times) if our 4-Year CD rate goes up.

Ally Bank has straightforward terms, online convenience and our Ally Bank Ten Day Best Rate Guarantee, which gives you the best rate we offer for your CD term during the ten days starting with your CD open date, provided you fund your CD within that time. Learn more by visiting Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.

Ally Bank, Member FDIC

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