Ally Bank Best CD Rates

Ally Bank has many options for the average investor. They offer some of the most competitive CD rates on the market today. Ally Bank offers certificate of deposits from 3 months to as long as 60 month (5 Years). Ally Bank also offers a ‘Raise Your Rate CD’ and they also have a ‘No Penalty CD’, meaning that you can close the CD without paying part of your interest back. One of the issues with longer term CDs is that if you want to close the CD early, you will have to pay an ‘Early Withdrawal Penalty’ for taking your money out. Here is a list of the most common CD Early Withdrawal Penalties:

  • 30 days = All Interest
  • 2-18 Month CDs = 3 Months Interest
  • 2 Years+ CDs = 6 Months Interest

Some banks have stricter penalties, so be sure to read the fine print!

Ally Bank’s No Penalty CD is only available in the 11 Month term, with a current rate of 1.35 percent. This is a pretty good rate since you can take your money out at any time after the first 6 days without paying a penalty. This 11 Month CD currently beats many 12 Month CDs from major banks, Credit Unions are the exception.

Ally Bank’s Raise Your Rate CD is only available for the 2 Year term, with a rate of 1.92%. With this CD, you have the option of raising your rate once within the 2 year term. If rates go higher than 1.92% you can bump your interest rate up to the higher level.

Here is a list of all of Ally Bank’s CD Rates:

CD Rates are constantly changing, so to find the most up to date rates, visit Ally.com


Discover Bank Offers Competitive CD Rates

These Discover Bank CD rates are out of date. Please check our CD Rates page for the most up to date rates from the top Banks.

You can always sign up for Discover Bank CDs here.

Discover Bank is offering some of the highest CD rates in the nation. The current 12 month CD rate from Discover Bank is 1.50% APY, while the national average for the same term is around 0.83%. You can still find better rates with other lenders such as Ally Bank.

One of the advantages of going through Discover Bank for your CD is their Early Withdrawal Fees. Most banks charge hefty fees for withdrawing your money before the end of the term, such as Chase Banks Early Withdrawal Penalty. Discover Bank will only charge:

  • 3 months interest on any CD of less than one year
  • 6 months interest of terms from one year to 5 years
  • And 9 months interest of any CD greater than 5 years

Be careful for any bank’s Early Withdrawal Penalty.

Here is an example of Chase Bank’s early withdrawal penalty:

For terms of one year or more, the early withdrawal penalty is equal to $25.00 plus 3% of the amount withdrawn.

With Discover Bank the fee is pretty standard for most banks and institutions.

Here are the most popular CDs from Discover Bank

  • 3 Month CD Rates 0.65% APY 0.65%
  • 6 Month CD Rates 1.14% APY 1.15%
  • 9 Month CD Rates 1.14% APY 1.15%
  • 12 Month CD Rates 1.49% APY 1.50%
  • 18 Month CD Rates 1.59% APY 1.60%
  • 24 Month CD Rates 1.88% APY 1.90%
  • 30 Month CD Rates 2.03% APY 2.05%
  • 3 Year Bank CD Rates 2.23% APY 2.25%
  • 4 Year Bank CD Rates 2.42% APY 2.45%
  • 5 Year Bank CD Rates 2.96% APY 3.00%


Watch Out For Chase’s CD Early Withdrawal Penalty

chase logoWe have all heard stories about hidden bank fees from ATMs and overdrafts, but there is another fee that savers need to worry about and that is the early withdrawal penalty of a certificate of deposit (CD). This penalty usually varies depending on the length of cd and what bank the cd is with. Usually for a long term CD the typical penalty is six months of interest. However, the early withdrawal penalty at Chase Bank is much more severe.


Last year if you had a CD at 5% with WaMu and that CD is now maturing as a Chase CD, it is very important to NOT allow it to automatically renew. You have a choice to not allow your CD to renew automatically, while some banks do not practice auto renewed cds, there are still those banks who like to keep your money as long as they can. This story comes from the site Bank Deals who reported about Chase’s early withdrawal penalty.

“A friend of mine had a Chase/WaMu CD flip over. It used to be at WaMu. To Cancel this Chase $100k CD, Chase wants $3k + $25. At the new interest rate of 0.20 for 12 months, that is a 15 YEAR interest penalty for canceling the CD. I know of no other bank in the world that charges this.”

Let’s say if you are on vacation and your $100k CD or even a $10k CD is coming up to maturity date. If you forget to close the CD during the grace period or the CD automatically renews, you will be liable for the early withdrawal penalty if you decide to try to get out of a second CD term. As Bank Deals’ reader found out, the penalty is much more than the usual six months of interest. Here is Chase’s disclosure (page 11), of the early withdrawal penalty for a 12 month CD:

‘For terms of one year or more, the early withdrawal penalty is equal to $25 plus 3% of the amount withdrawn.’

Plus your penalty may eat into the principal:

‘Early withdrawal penalties may require a reduction in the principle amount if the amount of accrued and unpaid interest on the deposit is less than the penalty.’

So by missing the grace period and doing an early withdrawal of the full amount, you will have to pay a large penalty to get your money out of the CD. An example is a $10k CD for more than 1 year you will have to pay a fee of $325.

Currently the Chase CD rates are not competitive, you can easily find better deals, higher interest and less penalties by going with a different bank.

Chase’s standard 12 month CD rate for Texas is only 0.25%, which you can find better rates just by searching for them. One positive note about Chase is they are a very financially sound bank and your money will be safe.