No Penalty CD (Certificate of Deposit) - Ally Bank

Ally Bank (earlier known as GMAC Bank) has a different type of certificate of deposit (CD) known as "No Penalty CD." As the name suggests you can withdraw your money before the CD matures and you will NOT be charged any penalty fees for early withdrawal. In short, you can maximize your earnings without losing flexibility over your funds.

Ally Bank No Penalty CD Review

At present Ally Bank is offering a 11 month NO Penalty CD with NO minimum amount specified for opening this CD. Some other features are:
  • No fees whatsoever.
  • Competitive High Yield APYs
  • If you want a no fee early withdrawal, you can get your full balance and interest any time after the first 6 days of funding your CD.
  • Interest is compounded daily.
  • Automatic renewal at maturity - If you don't want to renew, you can request an account closure with a check for the balance mailed to yourself.
  • Ability to withdraw and receive earned interest as income. You need to let them know before the CD maturity date or by ten days after.
  • Your CD's term and rate will go into effect when you make your opening deposit.
  • Ally Bank is FDIC Insured and has a 4 star rating from
Our Experience

We have opened a No Penalty CD with Ally Bank. Their customer service is very effective and is available 24 X 7. The best part of this deal is that Ally Bank offers extremely fast ACH transfers. Our account was funded and the balance was visible online within two business days. We know of several banks that sat on our money for at least 3 to 5 business days before it appeared in our online accounts :(.

Congrats to Ally Bank for coming up with such a neat product in these challenging times.