Ally Bank No Penalty CD Review

Ally Bank No Penalty CD is offered by Ally Financial Inc., a bank founded in 2001 and based in Philadelphia, PA. Ally Bank No Penalty CD is available in 50 states (and Washington, DC).

• Small selection of CD account types. Ally No Penalty CD only offers traditional and CDs.
• Very high APY. This account offers an annual percentage yield of up to 1.20%, which is much higher than the national average for a CD account.
• High minimum deposit. You must deposit a minimum of $25,000, which is high compared to most CD accounts.
• Limited selection of CD terms. Ally No Penalty CD only offers one CD terms. This limits your options when trying to set up a CD ladder.

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?

The CD rates for this account have an APY of1.20% (APY stands for annual percentage yield, rates may change). This is higher than the typical APY for online-only checking accounts, which is around 1% APY.

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

Ally No Penalty CD requires a minimum deposit of $25,000 to open an account.

What is the grace period for Ally No Penalty CD?

There is a 10-day grace period for Ally No Penalty 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 No Penalty 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.