Posted by William Charles on December 6, 2017
Savings Accounts

Published on December 6th, 2017 | by William Charles


Ally Bank CD With No Early Withdrawal Penalty – Offering Up To 1.50% APY

Top rate is now 1.5%. They also offer a ten day guarantee so if the rate increases within 10 days of funding account they will automatically increase the APY after that ten day period.

Offer at a glance

  • Interest Rate: Up to 1.5% APY
  • Minimum Balance: None
  • Maximum Balance: None
  • Availability: Nationwide
  • Insured: FDIC

The Offer

Direct link to offer

  • Ally Bank offers 11 month certificated deposits with the following rates:
    • 1% for opening deposits less than $5,00
    • 1.25% for opening deposits $5,000-$25,000
    • 1.5% for opening deposits $25,000+


The Fine Print

  • As long as the account isn’t closed within the first six days you keep the interest earned with no penalties

Our Verdict

Interest rates on savings accounts are on the increase, the best high yield savings accounts are currently offering 1.30% so this CD is slightly better at 1.5% for deposits of $25,000. My recommendation is to focus on the rewards accounts that offer up to 5% APY instead. Also as noted in the comments you must withdraw the full amount from the CD, no partial withdrawals.

Hat tip to @FiSnowball

55 Responses to Ally Bank CD With No Early Withdrawal Penalty – Offering Up To 1.50% APY

  1. deerseason says:

    Sorry, to clarify, this CD will accrue interest every month, and regardless of how early I withdraw it, I’ll still receive all the interest it had gained so far, no penalties, right?

    I already have more than this in Ally and don’t want to put more money into high interest savings accounts that have DD/min spend requirements, so sounds like I might as well put my Ally savings into this.

  2. MSer says:

    Not sure why these so-called “high inteest’ saving accounts are of any interest (excuse the pun) when it’s fairly easy to set up 2-3% checking accounts?

    • Chris says:

      Could you please elaborate on the easy to set up 2-3% options? On a big sum?? Like 100K.

      • NinjaX says:

        it takes a simple search on doc or google to see what hes talking about. FYI.

        • TBH I don’t really know of any 2-3% options that will allow 100k with easy to meet requirements.

        • APY says:

          I’m following pretty closely Doc’s posts and like many of you I’ve taken advantage of many of the account openings with a nice interest and so I have
          35K parked at the New Buffalo Savings,
          5 of the nespend account options with 1K each,
          2 of the new Insight accounts with 5K each (3rd card on the way), plus one old Insight account with 5K.
          The rest is in a 1% account, which is what I would like to move somewhere move profitable. Please give suggestions that don’t require too much monthly work. Thx!

  3. calwatch says:

    Remember that’s ALL your money, you cannot partially withdraw from an Ally CD.

  4. JuicyJosh says:

    Not to mention Ally savings account is already at 1.05% so that eliminates need for the 2 lower balance tiers.

  5. Eric says:

    There’s an option of choosing how interests will be distributed when opening the CD, and I think I should choose monthly instead of mature date if I may early withdraw my CD?

    • Chris says:

      You can, withdraw in any case. No penalty. But all of them at once.
      Also, if you select monthly check of the interest, that portion of course cannot earn you interest. If you leave it then it will. That’s the only difference.

      • Bob Miller says:

        Are you sure you will earn compound interest if you have the CD interest deposited back into the CD? I was under the impression that the APY will only apply to the initial deposit. I changed my CD settings to deposit the interest into my normal Ally Savings account that way I could earn interest on that.

    • Rick says:

      Yeah, even if you select the option to pay interest at maturity, you still get all of the interest accrued up to the point of CD closure if you decide to close early.

      I know this for certain because I just did it to upgrade from their 1.25% no-penalty CD from December to the new 1.35% one.

  6. Chris says:

    Long and informative chat with them.
    Soft pull, plus chex system.
    Initial deposit can be: wire the funds, transfer the funds or mail in your check to be deposited.
    If you plan to link your other account online after opening, then select option that you will send a check, just so you can finish the application. Then after opening, link your accounts, and after the standard verification, you could pull the money to be transferred to Ally.

  7. larry says:

    Reward accounts are pretty much useless because they have caps.

  8. Jake says:

    GS bank has a savings account at 1.20% APY. Slightly less interest but no $25,000 minimum

  9. RY says:

    It’s up to 1.5% now

  10. deerseason says:

    I put 25,000 into the 1.35% CD last week, it’s accrued like 5 dollars since. I was gonna make another 25,000 CD anyway, will definitely do so now.

    Q: If I close the 1.35% CD now (It didn’t adjust to the new 1.5% APY, in case you were curious), that’d go into my savings account along with the accrued interest, right? I don’t wanna close and lose out on that interest (yes, I know I have to wait at least 6 days before closing)

    • It says no penalties so you shouldn’t lose any accrued interest but I might be wrong.

    • Fish says:

      I would contact Ally to see if you’re still covered by the 10 day rate guarantee. Per Ally: “The Ally Ten Day Best Rate Guarantee for CDs 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.
      If you do not make your deposit within the Ten Day Best Rate Guarantee time period, your rate will be the rate
      on the day you fund and at the time the funds are deposited to your account(s).”

      • deerseason says:

        You’re right, I should be. I’ll check the rates tomorrow and give them a holler if it doesn’t change.

      • deerseason says:

        Update: I chatted with Ally and they confirmed that after 10 days with my 1.35% CD are up, on the 11th day, it will reflect the new rate (1.5%).

        Since it’s no penalty, it’s totally worth it for how simple and brainless this is. Especially if you’ve already got money elsewhere.

  11. J. says:

    No need to check. I just did and after ten days they are going to give me the new rate plus make it retroactive for the first ten days.
    Good deal.

    • Bob Miller says:

      They are going to change you from the 1.35 to the 1.5? I chatted with them and they told me I’d have to open a new CD.

  12. TG says:

    MemoryBank seems like a better option. It’s also 1.5% and since it’s a regular checking account, you can do partial withdrawals as you please.

    • Chris says:

      Thanks for the suggestion. To me the Ally seems better as Memory Bank needs some monthly work and that rate is just for the first year. Here are more details if anyone else needs to compare:

      You’ll earn 1% APY base earnings and a bonus of .5% for the first year. After the first year, the interest rate will revert to the standard 1% APY rate. You need to do the qualifying activities, even for the 1% rate.

      To be eligible for the bonus rate, you need to do the following three qualifying activities:

      Receive at least 1 electronic deposit such as payroll, transfers from other financial institutions, or even Popmoney each month
      Use your debit card for at least 5 in-person or online purchases each month
      Get your statements online

      • TG says:

        Since interest rates are going up, I’m sure in a year or less something better will come along. You can automate the deposit requirement and you can do a quick 5 Amazon reloads per month. A few minutes a month seems better than potentially closing the CD and opening another if you need part of your money.

        • Chris says:

          Exactly as you said, since interest rates are going up, and when something better comes along in a year or earlier, one can just move the funds from Ally to the better option.

          • TG says:

            And you can do the same from MemoryBank. You were listing MemoryBank’s rate for 1 year as a con but it doesn’t seem to really matter.

            And for MemoryBank, you can move partial amounts to any good high interest accounts that pop up.

  13. _here_ says:

    Closed the 1.25% CD I opened months ago and opened these. Was super easy online and only took a few minutes.

  14. Rudi Pittman says:

    You should add a comment about the 10 day guarantee to the post so folks who got one when you posted initially at 1.35% know that if they funded it within those 10 days then they get the guaranteed highest rate ie it gets bumped to 1.50 on the 11th day. I just confirmed mine would be adjusted up then.

  15. Yu says:

    if I open multiple CDs with Ally with several days apart, will they still do chex system to each of the CDs?

    • Greg says:

      I was wondering this also. I just called and every time you create a new CD they will do the Chex. However, if you just rollover a CD they won’t.

  16. Lisa says:

    It’s been 1.5 for 11 month no penalty cd for months.

  17. JDB says:

    Sallie Mae offers 1.70% APY on 12 month CD. One of the best rates I’ve seen around

    • Nick says:

      I noticed that also. Currently using CIT, which offers 1.35% Savings (any balance) and 1.55% 11 month no penalty CD. They sometimes pay a bonus for opening the savings account, so be sure to check before opening for any promo codes.

      • M says:

        Yes, there’s currently a $100 bonus for opening a CIT savings account (yields 1.35% on up to $250K) with the code “FALL17”.

  18. momosan says:

    While we’re talking about CDs, Navy Federal has two new specials to go along with the long standing Special Easy Start of $3K at 3% for 12 months.

    The two new ones are a regular Special for 15 months at 2.25% limit $50K, and an IRA or ESA Special for 32 months at 2.75%, limit $250K with a $100 bonus if it’s your first IRA at NFCU. You can add up to the limit at any time, and there are penalties for early withdrawal.

    These aren’t quite as good as the last batch of specials, but they are better than some options out there. As always, the regular $3K/3%/12 Special Easy Start is the place to start.

  19. Jatan says:

    Ally No Penalty CD is 1.60% now:

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