What is Ally Bank Raise Your Rate 2-Year CD?
Ally Bank's Raise Your Rate 2-Year CD is an excellent investment option for individuals looking to earn higher interest rates while keeping their funds safe. This 2-year CD offers a fixed interest rate for two years, with no monthly maintenance fees and minimum deposits as low as $0.01.
But unlike traditional CDs which have static interest rates, Ally's Raise Your Rate 2-Year CD allows you to boost your interest rate once if market rates increase during the term of your CD. This gives you the opportunity to earn more interest without exposing your funds to market fluctuations or risking your principal.
The option to raise your rate is available to you once during your entire 2-year term and the new rate will be higher than the current rate for the remainder of the term. This feature can be particularly useful in a rising interest rate environment, as it allows you to lock-in a rate that will adjust to the market when needed.
Ally Bank is known for its competitive rates and outstanding customer service. This Raise Your Rate 2-Year CD offered by Ally Bank could be a great investment choice for individuals looking for a low-risk investment option with the potential to earn higher interest rates.
Frequently Asked Questions about ally bank raise your rate 2-year cd
If our rate goes up, you can raise yours.
There's no minimum deposit required to open your account, and you'll always start with a great rate. Plus, you'll have the opportunity to raise it once for the 2-Year term or twice for the 4-Year term, if our rate goes up for your term and opening balance amount.
Ally Bank CD Rates: October 2023
| CD Term | APY | Minimum Deposit |
|---|
| 12 Months | 5.00% | $0 |
| 18 Months | 5.15% | $0 |
| 36 Months | 4.25% | $0 |
| 60 Months | 4.10% | $0 |
Ally Bank High Yield CD Overview
| CD Term | APY | Minimum Balance |
|---|
| 12 months | 5.00% | No minimum |
| 18 months | 5.15% | No minimum |
| 36 months | 4.25% | No minimum |
| 60 months | 4.10% | No minimum1 |
Rates as of September 22, 2023. The unusual rate hike this weekend was the 75-bp rate increase of Ally's 11-month No Penalty CD. The 11-month No Penalty CD now has a 4.75% APY. The media may not notice this rate as unusual since many online banks now offer 12-month standard CDs with a 5.00% APY.
A bump-up CD, sometimes called a raise-your-rate CD, is a certificate of deposit account that gives you the option to “bump up,” or increase, your APY during the CD's maturity term. You can ask the bank to raise the APY on your CD before it matures to take advantage of rising interest rates.
Several banks and credit unions offer a CD paying 6% APY. Read more about the opening requirement for each financial institution, below.
Ally's CD rates are competitive. Ally has slightly fewer options for long-term CDs than some other banks, but it's still easy to establish a CD ladder. Online banks such as Bread Financial and Live Oak Bank offer higher rates on a one-year CD, for instance. But unlike Ally, they also have minimum deposit requirements.
However, two financial institutions are paying at least 7% APY on checking accounts: Landmark Credit Union, and OnPath Federal Credit Union.
- OnPath Credit Union High Yield Checking.
- Landmark Credit Union Premium Checking.
- What does a 7% interest rate on a savings account mean?
Best 2-Year CD Rates
- Newtek Bank – 5.60% APY.
- Vibrant Credit Union – 5.50% APY.
- Prime Alliance Bank – 5.50% APY.
- La Capitol Federal Credit Union – 5.50% APY.
- Luana Savings Bank – 5.47% APY.
- MapleMark Bank – 5.40% APY.
- Chartway Credit Union – 5.30% APY*
- Pelican State Credit Union – 5.27% APY.
Several economists have made interest rates forecasts for 2023, which give some insights for the direction of CD rates. Bankrate forecasts high but steady interest rates for 2023, with a federal funds rate between 5.25% and 5.50% and a national average for 1-year CD rates of 1.63%.
Best CD rates of October 2023
- Ally Bank®: Earn up to 5.00% APY.
- Barclays®: Earn up to 5.00% APY.
- Bread Savings™ (formerly Comenity Direct): Earn up to 5.35% APY.
- Marcus by Goldman Sachs®: Earn up to 4.85% APY.
- Quontic Bank: Earn up to 5.30% APY.
- Synchrony Bank: Earn up to 5.40% APY.
Right now, there aren't any financial institutions offering 7% interest on a CD. Alpena Alcona Area Credit Union, a local financial institution in Michigan, previously offered a 7.19% APY on a 7-month CD special, but that offer has ended. There are a few financial institutions with CDs paying 6% APY or more, though.
A two-year certificate of deposit (CD) can be a useful financial tool for those looking to secure a higher interest rate on their savings without committing to locking up their money long term. It may also pay a higher rate of return than a high-yield savings account.
Despite higher inflation, CDs are only worth it when they fit your investment goals. CDs are best for conservative investors or those looking to dampen their portfolio volatility. As you age, you should shift your investment focus from growth to capital preservation.
CD rates rose throughout 2023 as the Fed hiked interest rates. The Fed decided to raise rates to its highest level in 22 years in its July meeting, before pausing its rate increases during its September confab.
A two-year certificate of deposit (CD) can be a useful financial tool for those looking to secure a higher interest rate on their savings without committing to locking up their money long term. It may also pay a higher rate of return than a high-yield savings account.
