Ally Bank High Yield CD Review

Ally Bank High Yield CD is offered by Ally Financial Inc., a bank founded in 2001 and based in Philadelphia, PA. Ally Bank High Yield CD is available in 50 states (and Washington, DC).

• Only one CD account type available. Ally High Yield CD only offers traditional CD accounts.
• Very high APY. This account offers an annual percentage yield of up to .85%, which is much higher than the national average for a CD account.
• No minimum initial deposit. There is no minimum balance required to open an account.
• Wide selection of CD terms. Ally High Yield CD allows you to create a CD ladder by spreading your cash across certificates with different terms. This combines the benefits of frequent access to funds and higher rates of return on your savings.

Are cd accounts from Ally Financial Inc. federally insured?

Yes, your Ally Financial Inc. cd accounts are insured up to $250,000 per person by the Federal Deposit Insurance Corporation (FDIC #57803). The FDIC is an independent agency of the United States government that protects you against the loss of your insured deposits if an FDIC-insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government.

What types of CDs does Ally Financial Inc. offer?

• Traditional CDs. These CDs pay a fixed interest rate i you deposit a fixed amount of money for a specific term. Once the maturity date arrives, you have the option of cashing out or rolling over the CD for another term.

What CD rates does Ally Financial Inc. offer on its CDs?

Ally High Yield CD offers an APY starting at 0.20% and ranging up to .85%. APY stands for annual percentage yield and shows the interest rate paid by the CD after taking into account compounding.

What is the minimum deposit to open a CD account with Ally Financial Inc.?

Ally High Yield CD does not require a minimum deposit.

What is the grace period for Ally High Yield CD?

There is a 10-day grace period for Ally High Yield CD. A grace period is a period of time during which you can withdraw the money in your CD without paying an early withdrawal penalty. A grace period starts the day after a CD’s maturity date, or the final day a CD is opened. Standard CDs renew automatically at the same term if you don't withdraw your money after the 10-day grace period. Note that the new CD rates probably won’t be the same as the original.

What types of fees, such as early withdrawal penalties, does Ally High Yield CD charge?

Financial institutions don't typically charge many fees on CDs. However, most charge a fee if you choose to withdraw your money before the CD term ends.

Ally Financial Inc. does not charge an early withdrawal fee.