Ally Bank Offers 3.90% APY on Six-Month CDs

Ally Bank, a prominent online financial institution, offers a variety of certificate of deposit (CD) options with competitive rates. As of July 14, 2025, Ally Bank provides several types of CDs, including standard CDs, Raise Your Rate CDs, no-penalty CDs, and IRA CDs. These CDs are designed to cater to different financial needs and preferences, with no minimum opening deposit required for any of them.

Ally’s standard CDs come in seven different term lengths, ranging from three months to sixty months. The annual percentage yield (APY) for these CDs varies by term length, with the highest APY of 3.90% offered for the six-month and nine-month terms. The APY for the three-month term is 2.90%, while the twelve-month, eighteen-month, thirty-six-month, and sixty-month terms offer APYs of 3.85%, 3.65%, 3.50%, and 3.50% respectively. Early withdrawal penalties for standard CDs range from 30 days of interest for terms less than three months to 150 days of interest for terms of 49 months or more.

Raise Your Rate CDs are another option offered by Ally Bank, allowing customers to increase their CD rate without penalty if Ally’s CD rates go up during their term. These CDs are available in two-year and four-year terms, with an APY of 3.50% for both. The two-year CD allows for one rate increase, while the four-year CD allows for two rate increases. Ally will automatically alert customers when they are eligible for a rate increase, eliminating the need for frequent rate checks.

For those who may need access to their funds before the CD matures, Ally Bank offers an 11-month no-penalty CD with an APY of 3.40%. This CD allows customers to withdraw their principal and any interest earned after the first six days of having the account funded, making it a suitable option for those with upcoming expenses.

Ally Bank also provides IRA CDs, which are similar to their non-retirement CDs but come with additional tax advantages. These CDs are available as a Roth, simplified employee pension (SEP), or traditional IRA, with term lengths ranging from three months to five years. The APY for IRA CDs varies by term length, with the highest APY of 3.90% offered for the six-month and nine-month terms. Early withdrawal penalties for IRA CDs are the same as those for standard CDs, and customers may also face additional fees from the IRS if they withdraw their money before age 59½.

When compared to other competitors, Ally Bank’s CD rates are competitive, particularly for shorter-term CDs. For example, Ally Bank’s six-month CD offers an APY of 3.90%, while Northern Bank Direct offers an APY of 4.60% for the same term. However, Ally Bank’s nine-month CD offers a higher APY of 3.90% compared to Northern Bank Direct’s 4.50% and Discover Bank’s 4.00%.

Ally Bank is one of the largest online financial institutions in the U.S., with over 11 million customers and $182 billion in consolidated assets. In addition to its CDs, Ally Bank offers a range of financial products and services, including checking accounts, savings accounts, money market accounts, credit cards, investing and retirement services, mortgages and refinancing, and auto financing. All of Ally Bank’s deposit accounts are FDIC insured up to the maximum $250,000 per account holder, providing customers with peace of mind and security.