Ally Bank 11-Month No Penalty CD at 1.50% APY for $25k+, 1.25% APY for $5k+


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

  • 1.50% APY at $25,000 minimum opening deposit
  • 1.25% APY at $5,000 minimum deposit
  • 1.00% APY at no minimum deposit.

The 11-month No Penalty CD is unique in that while the 1.50% 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.

1.50% APY for $25k+ is higher than any other liquid savings account rate, while there are a handful of banks that beat the 1.25% rate for $5k balances. However, the rates on savings accounts can change at any time. Here the the top banks right now:

  • DollarSavingsDirect at 1.30% APY
  • BankPurely at 1.30% APY

What’s notable about these banks is that they are both “clones” of existing banks (Emigrant Direct and iGoBanking, respectively) which have lower interest rates. So they have a history of enticing new customers with high rates, and then lowering the rates on existing customers while hoping that they are too lazy or forgetful to move away. If you move funds over, be vigilant and ready to move out.

1.50% APY is also right at the top for most 12-month CDs that do come with early withdrawal penalties, although some have lower minimum deposit requirements in the $5k range.

This can be a great companion acount with 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 6/20/17.


  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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