A little while back I had reviews Ally saving account. Here I am again on ally, this time it’s the Certificate of Deposit product that is in consideration. Ally, formerly GMAC, offers suit of banking products, from checking accounts, to CD and saving accounts.
Ally offers average rates on CD accounts, and a various options. Their ‘no penalty’ CD allows you to take money out early without paying fees. The ‘high yield’ CD pays more, but has penalties if you cash out before maturity. Be careful before 
you apply for your account. If you are parking your cash for a fixed duration and don’t anticipate a need to withdraw early, go for the ‘High Yield’ option.
Ally CD salient features
- Earn a higher rate than traditional savings and get free online banking transactions.
- No minimum deposit to open
- No monthly maintenance fees
- Other fees, such as those for returned deposit items and outgoing wires, may reduce earnings
- Daily compounded interest for maximum earnings
- FDIC insured to the maximum allowed by law. Maximize your coverage
- Six transactions per statement cycle with no fees.
- Your actual variable rate will go into effect when you make your opening deposit
Ally’s Three CD Offering
Ally offers three types of CD accounts, satisfying three different needs.
High Yield CD – Offers 1.09% APY
Features
- No minimum deposit to open
- No monthly maintenance fees
- Daily compound interest for maximum earnings
- FDIC insured to the maximum allowed by law.
- Automatic renewal at maturity. If you make an early withdrawal, you will pay a penalty.
Fees
- Early withdrawal penalty if you withdraw before the CD matures. Penalty equals 60 days’ interest
No Penalty CD – Offers 0.94% APY
Features
- No minimum deposit to open
- No monthly maintenance fees
- Daily compound interest for maximum earnings
- FDIC insured to the maximum allowed by law.
- Automatic renewal at maturity.
- Get your full balance and interest any time after the first 6 days of funding your CD
Fees – None
Raise your Rate CD – Offers 1.09% APY
These are longer term CDs, typically 2 and 4 years of maturity. There is an early withdrawal penalty associated with this type of CD. This CD allows you to lock in a rate now, and have a one rate increase option within the 2 year term if rates go up.
Features
- No minimum deposit to open
- No monthly maintenance fees
- You can change your rate after your account is opened — if our rate on this CD goes up, your rate will also go up
- One interest rate increase with the 2 year term
- Two interest rate increases with the 4 year term
- FDIC insured to the maximum allowed by law.
- Automatic renewal at maturity. If you make an early withdrawal, you will pay a penalty.
Fees
- Early withdrawal penalty if you withdraw before the CD matures. Penalty equals 60 days’ interest
Verdict on Ally CD Accounts
We give these Cd “invest” rating. Though there are saving accounts and CD which give better rate for your money. You may prefer parking your money in ‘No penalty CDs’ and avoid penalty if you’re uncertain of your future cash needs. Rates are not much wider, just 0.15% between “Raise your Rate CD” and “No Penalty CD”.
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Disclaimer: Finance Product Reviews is an independent website. Although we may have advertisement relationship with financial institution we review, they do not influence our decision or rating of products. Contents of this site are not provided by any financial institution, banks, brokerages or credit card issuers. Opinions expressed here are author’s alone and are not reviewed, approved or otherwise endorsed by the product owners.
I’m glad this product got a “pass” as we have one!
Interesting. I hadn’t heard about no penalty CDs. I recentlly had a CD that was maturing while we were to be on vacation. The no penalty one might have been an option to handle that.