Ally Bank Raise Your Rate CD

Ally Bank Raise Your Rate CD Review

Ally Bank Raise Your Rate CD are offered by Ally Financial Inc., a bank founded in 2001 and based in Philadelphia, PA. Ally Bank Raise Your Rate CD are available in 50 states (and Washington, DC).

Key Takeaways

• Raise your rate. If Ally's rate for your term and opening balance goes up, you'll have the opportunity to raise it once for the 2-Year term or twice for the 4-Year term.
• Only one CD type available. Ally Raise Your Rate CD only offers traditional CD accounts.
• Very high annual percentage yield (APY). This account offers an annual percentage yield of up to 3.30%, 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.
• Limited selection of CD terms. Ally Raise Your Rate CD only offers two CD terms. This limits your options when trying to set up a CD ladder.

Pros & Cons of Ally Bank Raise Your Rate CD

Ally Bank Raise Your Rate CD FAQ

Are CD from Ally Financial Inc. federally insured?

Yes, your Ally Financial Inc. CDs 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 if you deposit a fixed amount of money for a specific term. Once the maturity date arrives, you have the option of cashing out or automatically renewing the CDs for another term.

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

The CD rates for this account have an APY of3.30% (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 Raise Your Rate CD does not require a minimum deposit.

What is the grace period for Ally Raise Your Rate CD?

There is a 10-day grace period for Ally Raise Your Rate 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 Financial Inc. 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 term ends.

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