Banking » Compare Banks » Ally vs Discover: Which Offers Better CD Rates?
Advertiser Disclosure This website is an independent, advertising-supported comparison service. The product offers that appear on this site are from companies from which this website receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This website does not include all card companies or all card offers available in the marketplace. This website may use other proprietary factors to impact card offer listings on the website such as consumer selection or the likelihood of the applicant’s credit approval. This allows us to maintain a full-time, editorial staff and work with finance experts you know and trust. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impacts any of the editorial content on The Smart Investor. While we work hard to provide accurate and up to date information that we think you will find relevant, The Smart Investor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof. Learn more about how we review products and read our advertiser disclosure for how we make money. All products are presented without warranty.

Ally vs Discover: Which Offers Better CD Rates?

You can get competitive rates with both Ally and Discover CDs. Compare rates, minimum deposits, and early withdrawal penalties.
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
Interest Rates Last Update: January 1, 2024
The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
Interest Rates Last Update: January 1, 2024

The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.

We earn a commission from our partner links on this page. It doesn't affect the integrity of our unbiased, independent editorial staff. Transparency is a core value for us, read our advertiser disclosure and how we make money.

Table Of Content

Certificates of Deposit (CDs) are a popular way for savers to earn interest on their money while keeping it safe and secure. Two of the top choices for online banking and CD options are Ally Bank and Discover. While both banks offer competitive rates and flexible terms, there are some notable differences between the two.

In this article, we'll take a closer look at the CDs offered by Ally Bank and Discover, comparing rates, minimum deposits, early withdrawal penalties, and other features to help you decide which bank's CDs are right for you.

Ally
Discover
CD Range
3.00% – 5.25%
2.00% – 5.30%
Minimum Deposit
$0
$2,500
Early Withdrawal penalty
60-150 days of interest
3-24 months of interest
Terms
3 – 60 months
3 – 120 months

How Do CD Rates Compare?

The CD rates battle between Ally and Discover has no clear winner.

While Ally CD rates are slightly better for the short term, if you compare long-term CD rates – Discover is the winner, so it mainly depends on your chosen term. Both offer very competitive rates compared to other online banks or credit unions.

Discover terms are more diverse, and there are many more options for investors than the terms offered by Ally Bank.

CD Term
Discover APY
Ally APY
3 Months
2.00%
3.00%
6 Months
3.40%
5.00%
9 Months
5.30%
5.05%
12 Months
5.20%
5.25%
18 Months
5.00%
5.15%
24 Months
4.40%
N/A
30 Months
4.30%
N/A
36 Months
4.30%
4.25%
48 Months
4.00%
N/A
60 Months
4.00%
4.10%
120 Months
3.80%
N/A

The Top Choice for Flexible CDs: Ally's No Penalty Option

Unlike traditional CDs, which typically impose a penalty for early withdrawal, Ally's No Penalty CD allows customers to withdraw their funds without penalty at any time after the first six days of opening the account.

The rate is one of the highest in the market for no penalty CD, makes it a great choice for many investors.

CD Term
APY
Ally Bank 11 Months – No Penalty
4.55%

A Closer Look at Ally and Discover CDs

If you're looking for a reliable and competitive option for a CD, both Ally Bank and Discover are worth considering. Ally's High Yield CDs offer terms ranging from three months to five years, with a focus on longer terms. However, if you need to withdraw funds early, you'll face a penalty that varies based on the term of your CD.

Ally deposit to CD on app
Ally high yield CD option (Screenshot taken by our team from Ally app, rates are not updated)

On the other hand, Discover CDs require a minimum deposit of $2,500 and offer terms ranging from three months to ten years, with rates varying depending on the selected term. While Discover CD rates are competitive, Discover doesn't offer a no-penalty CD, so early withdrawals will result in a penalty.

Overall, Ally's High Yield CDs offer flexibility with terms and competitive rates, but you'll need to be prepared for potential penalties if you need to withdraw funds early. Meanwhile, Discover's CDs offer a range of terms and competitive rates, but you'll need to commit to the selected term since early withdrawals come with penalties.

Compare CD Early Withdrawal Penalty

Ally emerges as the champion when it comes to early withdrawal penalties.

Compared to Discover penalties, Ally imposes better conditions across all its CD offerings, making it one of the most flexible options available. In fact, Ally stands out as a top choice for CDs due to its extremely low penalty fees.

CD Term
Discover
Ally
3 Months
3 months of interest
60 days of interest
6 Months
3 months of interest
60 days of interest
9 Months
3 months of interest
60 days of interest
12 Months
6 months of interest
60 days of interest
18 Months
6 months of interest
N/A
24 Months
6 months of interest
N/A
30 Months
6 months of interest
N/A
36 Months
6 months interest
90 days of interest
48 Months
6 of months interest
N/A
60 Months
18 months interest
150 days of interest
120 Months
24 months interest
N/A

About Ally Bank

Despite its reputation as a newcomer to the banking industry, Ally Bank has actually been in operation for over a decade, having been established in 2009. As an online bank, Ally offers a full range of services, including savings and CD accounts, money market accounts, loans, mortgages, checking accounts, investments, and retirement services.

With a focus on low fees, 24/7 customer support, and highly competitive rates, Ally has earned a reputation for providing exceptional services. The addition of checking accounts to its lineup of offerings makes Ally a credible alternative to traditional banks, with the ability to handle all your day-to-day financial needs using only Ally.

Explore Ally Bank banking options
(Screenshot taken by our team from Ally app)

About Discover Bank

With a history of over 30 years, Discover has a proven track record of offering a range of financial products. While the company first gained popularity for its credit card, it has since expanded its offerings to include savings products, such as savings and CD accounts, as well as personal and home loans, IRAs, and a checking account.

Discover has a commitment to being a top digital bank and is dedicated to helping customers achieve a brighter financial future.

How We Compare CDs: Methodology

In our comprehensive certificate of deposit (CD) comparison, The Smart Investor team meticulously evaluated various CDs across four key categories to assist you in selecting the most suitable option for your savings goals.

  • CD Rates: We thoroughly examined the interest rates offered by each CD, considering their competitiveness in the market. Higher rates typically translate to greater returns on your investment over the CD's term. Additionally, we scrutinized any special promotional rates or conditions that might affect the overall value of the CD.
  • CD Features: This category focuses on the unique features and terms associated with each CD. We assessed factors such as minimum deposit requirements, early withdrawal penalties, and the availability of flexible terms. Additionally, we considered any additional perks like interest compounding frequency or options for automatic renewal.
  • Customer Experience: A positive customer experience is crucial in banking, and we evaluated each institution's performance in this regard. We looked into aspects such as the ease of opening a CD, the quality of customer service, and the availability of support channels. Reviews from reputable sources such as Trustpilot and JD Power rankings were also considered to gauge overall user satisfaction.
  • Bank Reputation: The reputation of the bank is a significant factor in the decision-making process. We examined the bank's financial stability, regulatory compliance, and public perception to assess its overall trustworthiness and reliability as a CD provider.

Compare Ally CDs

Synchrony Bank and Ally CDs offer competitive rates, including no penalty CDs. Which one is the winner? Check out our full comparison: Synchrony CDs vs Ally CDs

Citi Bank and Ally offer competitive CD rates, including no penalty CDs. Which one is the winner? Check out our full comparison: Citibank CDs vs Ally CDs

Compare Discover Certificate Of Deposit (CDs)

Discover the best CD rates Marcus and Discover offer with our comprehensive comparison, including early withdrawal penalty.

Marcus vs Discover: Which Offers Better CD Rates?

Discover and Capital One offer high CD rates on all terms. However, for each term there is a different winner – here's a full comparison: Synchrony CDs vs. Discover CDs

Synchrony Bank offers better CD rates than Discover for most terms. Compare CD rates, minimum deposit, and early withdrawal fees.

Comparing CD Rates: Capital One vs. Discover Side By Side

Compare CD Rates

Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
Search
Best CD Rates
Top Offers From Our Partners

UpgradeLogo

Savings Rate: 5.07% APY
Minimum Deposit:
$0
 
CIT-Bank-Logo
Savings Rate: 5.05% APY
Minimum Deposit:
$5,000
Quontic bank logo
Savings Rate: 4.50% APY
Minimum Deposit:
$100
 
Advertiser Disclosure
The product offers that appear on this site are from companies from which this website receives compensation.
Top Offers From Our Partners

Chase_logo

Promotion:
$300 New Chase checking customers enjoy a $300 bonus when you open a Chase Total Checking® account and make direct deposits totaling $500 or more within 90 days of coupon enrollment.. Expired on 4/17/2024
Chase Overdraft Assist
With Chase Overdraft AssistSM, you won’t be charged an Overdraft Fee if you’re overdrawn by $50 or less at the end of the business day OR if you’re overdrawn by more than $50 and you bring your account balance to overdrawn by $50 or less at the end of the next business day

UpgradeLogo

Fees:
No monthly fees No monthly fees and no overdraft fees. Plus get reimbursed for ATM fees with an active account 
Rewards:
Up to 2% cash back Up to 2% cash back on common everyday expenses for active accounts with monthly $1,000 direct deposit, and up to 1% cash back for other purchases 
Promotion:
$300 Use Promo Code “AXOS300” for a $300 bonus when you apply for a Rewards Checking account
Up to 3.30% APY
to get the maximum rate (up to $50,000) you’ll need monthly direct deposits of $1,500 (0.40% APY), 10 transaction on your debit card (+0.30% APY), average daily balance of $2,500 on Axos Invest Managed Portfolio (+1.00% APY), average daily balance of $2,500 on Axos Invest Self Directed Trading Account(+1.00% APY) and make full monthly payment on loans (mortgage, personal and auto) with Axos account (+0.60% APY).

PNC bank logo

Promotion:
Up to $400 Open a new, select Virtual Wallet product and receive $500/$2,000/$5,000 or more in qualifying monthly direct deposits within 60 days to earn a $100/$200/$400 bonus.
Subject to state availability
PNC Virtual Wallet ® is available in AL, AZ, CA, CO, DC, DE, FL, GA, IL, IN, KY, MD, MI, NC, NJ, NY, NM, OH, PA, SC, TX, VA, WI, and WV. Virtual Wallet ® is offered in the state of MO with the exception of the Greater Kansas City area. Product availability may vary based on where you open your account and the Zip code of your primary

Promotion:
Up to $4,000 New customers may earn up to $4,000 when they open an eligible HSBC Premier checking account from January 8, 2024 through March 27, 2024 and complete qualifying activities:

• Receive a cash bonus of $1,500 when you deposit or invest $100,000 – $199,999.99

• Receive a cash bonus of $2,000 when you deposit or invest $200,000 – $299,999.99

• Receive a cash bonus of $2,500 when you deposit or invest $300,000 – 499,999.99

• Receive a cash bonus of $3,500 when you deposit or invest $500,000+

• Earn an extra $500 when you set up recurring monthly Direct Deposits totaling at least $5,000 for 3 months
Wealth Products & Advice
Get access to wealth products, insights and advice from an HSBC Financial Professional through HSBC Securities (USA) Inc
Advertiser Disclosure
The product offers that appear on this site are from companies from which this website receives compensation.

Table of Contents