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IRA High Yield CD FAQs

  • What's the minimum opening deposit for an Ally Bank IRA CD and are there any fees to open an IRA CD?

    There's no minimum deposit to open an IRA CD. There's also no maintenance fees or fees to open an Ally Bank IRA CD.

  • 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 are the current rates on Ally Bank IRA CDs?

    You can view our current rates by visiting our IRA High Yield CD and IRA Raise Your Rate CD pages.

    When logged in to online banking, you can view our current rates by going to the Main Menu  at the top right of the page then selecting Explore Products & Rates.

    You can also call us at 1-877-247-ALLY (2559). Rates may change frequently.

  • 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.