Ally Bank 11-Month No Penalty CD at 1.60% APY for $25k+, 18-Month CD 1.75% APY


Updated. Ally Bank raised the rate on their 11-month No Penalty CD. Here are the new interest rates under their tiered structure:

  • 1.60% APY at $25,000 minimum opening deposit
  • 1.35% APY at $5,000 minimum deposit
  • 1.15% APY at no minimum deposit.

The 11-month No Penalty CD is unique in that while the 1.60% APY rate is locked in at deposit, you can still withdraw your principal and interest without penalty at any time (well, you do have to wait at least 6 days from the deposit date). In other words, your interest rate can never go down, but you can still jump ship if rates rise or if there is a better promo elsewhere.

If you have an existing No Penalty CD, this means you may consider closing it and then opening up a new one at a higher rate. You will have to withdraw everything at once – there are not partial withdrawals. If you have an Ally savings or checking account, you can close the old CD, see the deposit in your savings/checking, and open up a new CD all in minutes online. (Note that savings accounts are limited to 6 withdrawals per month, so us checking if you have it.) You will be extending the term out another 11 months, but since you can also close it at any time it isn’t much of a concern.

1.60% APY for $25k+ is higher than nearly all other liquid savings account rates. Some are close, though17. You may also prefer the liquidity of savings account, but the rates on savings accounts can change at any time. It is also interesting to compare with their 12-month CD at 1.65% APY and 18-month CD at 1.75% APY. Is it worth the higher interest rate and longer guaranteed period to be locked in?

Another competitive option to consider is the CIT Bank 11-Month No Penalty CD, which is currently at 1.55% APY but with a lower $1,000 minimum deposit. I don’t think it was a coincidence that Ally increased their top rate from 1.50% to 1.60% APY, just edging out CIT Bank. Hopefully the competition ends up benefiting savers.

Ally No Penalty CDs can be a great companion to the Ally Bank Online Savings and Interest Checking accounts, which are my primary bank accounts. I’ll have to decide quickly how much to move over into this 11-month CD as the rate may not last.

Rates as of 12/10/17.


  1. I am trying to understand this offering. Is there a reason for me not to move most of my Ally Savings account money over to several $25K CDs? I can then move them back one by one whenever I need the money? This seems to increase my interest by 50% with very little effort and no down side.

    • Yes, it wise to put it in $25k amounts as partial withdrawals are not allowed on the No Penalty CD. If you’re alternative is the Ally online savings, then the only cost is the hassle of applying and “breaking” the CD early. Good news that applying is quite easy for existing Ally customers.

      • I did it. Very easy, thanks for the tip. I am now earning 1.5% on most of my short-term savings / emergency fund.

  2. Anthony says:

    If there is no penalty, will you still receive all accrued interest at time of withdrawal?

    • Yes, this is quoted from the Ally website:

      With our No Penalty CD, you will not be charged a penalty for early withdrawal. You can withdraw your full balance and interest any time after the first 6 days following the date you funded the account.

  3. That’s what it says.

  4. Can you compare this product to, say, their current 5-yr CD offering (w/ early termination fee) which is currently at 2.25%?

    • @Dan – The 5-yr has a 5 month early termination fee. So the break even point (to earn a round 1.5% interest accounting for the early termination fee) is 15 months.
      If you close it out in 11 months , you will end up with a rate of about 1.23%.

  5. Synchrony 15 month is 1.55 but yes money stays locked for 15 months

  6. (ok, ok, I think I just got called out as lazy for having left money in my Emigrant account…….. closed it now 🙂

  7. I saw this yesterday on their website, closed out my current 11 month no-penalty CD which was giving me 1.25% and opened a new one right away which now gives me 1.5%. Since i am an existing Ally customer, it was a very seamless experience.

    I agree that the 11 month no-penalty CD is like a liquid account if you can keep a tab on it.

  8. I’m going to convert my Alley savings account (1.05%) to a handful of these right after I get my savings account interest payment on the 25th.

  9. Jacob Blumberg says:

    I just opened the CD, super easy to open and change options. Thanks!

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