bank rates

Another Ally CD Rate Change In 3, 2, 1…

Ally Bank changes its CD rates frequently.If there was an award for a bank that changed its CD rates often, and by annoyingly minuscule amounts (we’re talking a hundredth of a percentage point at times), Ally Bank would win.

Hands down.

Whoever has their finger on the CD rate button at this online bank based in Charlotte, N.C., is either fidgety or manic.

Or perhaps — because other banks complained that Ally’s parent company received bailout money — Ally is required by the FDIC to offer no better than the sixth-best rate in the country, as a 2009 Wall Street Journal story suggests.

That’s not to say we don’t like Ally Bank.

It’s good to savers — better at some points than at others, but good overall.

First off, Ally Bank offers three types of CDs: high-yield CDs, no-penalty CDs and raise-your-rate CDs.

Your best bets right now are in the raise-your-rate category.

It pays 1.14% APY for these 24-month CDs and allows you to raise your rate once.

That’s just over a tenth of a percentage point less than the top nationally available 24-month CD rate on our CD Rates Leaderboard, which is offered by two banks.

One of those leaders — CIT Bank — also lets you raise your rate once, as well as add to your deposit once, but requires a $25,000 minimum deposit.

Ally has no minimum deposit requirement for any of its certificates of deposit.

The average annual yield offered by large banks and thrifts for 24-month CDs is 0.50% this week.

Ally Bank’s second raise-your-rate offering is a 48-month CD paying 1.49% APY. That’s just shy of the top nationally available 36-month CD rate, and you’re able to raise your rate twice.

Ally Bank’s high-yield CD offerings are way above average; in fact, we’ve been keeping an eye on all of these rates:

3-month CD rate is 0.44% APY versus an average rate of 0.14% APY. (Leaderboard leader is 0.66% APY.)

6-month CD rate is 0.74% APY versus an average rate of 0.20% APY. (Leaderboard leader is 0.90% APY.)

12-month CD rate is 1.02% APY versus an average rate of 0.31% APY. (Leaderboard leader is 1.15% APY.)

36-month CD rate is 1.34% APY versus an average rate of 0.66% APY. (Leaderboard leader is 1.50% APY.)

60-month CD rate is 1.74% APY versus an average rate of 1.09% APY. (Leaderboard leader is 1.91% APY.)

Ally Bank’s no-penalty CD is an 11-month CD paying 0.93% APY.

This isn’t an awesome rate, but you always take a hit for the luxury of an early withdrawal.

Ally Bank sells its CDs online, through the mail and over the phone.

You can learn more about Ally Bank at www.ally.com or call 877-247-2559.

While these rates are good, there are better deals out there. You’ll find them if you compare Ally Bank’s returns with the best CD rates from scores of other banks in our extensive database.

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