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When choosing a bank for your CD, it's important to compare interest rates and fees to ensure you're getting the best deal possible. Two popular options for CDs are Ally Bank and Synchrony Bank, both of which offer competitive rates and flexible terms.
In this article, we'll take a closer look at the CD rates and early withdrawal fees for both banks, as well as the terms and features of their CDs. Here's a general CD comparison:
Synchrony Bank CDs | Ally CDs | |
|---|---|---|
CD Range | 2.25% – 5.00% | 2.00% – 4.80% |
Minimum Deposit | $0 | $0 |
Early Withdrawal penalty | 90 – 365 days of interest | 60-150 days of interest |
Term | 3 months – 5 year | 3 – 60 months |
Synchrony vs. Ally: Compare CD Rates
The table compares the CD rates offered by Synchrony Bank and Ally Bank for specific terms.
As you can see, the differences are minor, and there is no clear advantage for any banks. For some terms, Ally offers a slightly higher rate, while on others – Synchrony is better. So, it mainly depends on which term you want to invest in and understanding which offers more.
CD Term | Synchrony Bank APY | Ally Bank APY |
|---|---|---|
3 Months | 2.25% | 2.50% |
6 Months | 5.00% | 3.50% |
9 Months | 4.80% | 4.15% |
12 Months | 4.50% | 4.50% |
18 Months | 4.50%
| 4.80% |
24 Months | 4.30% | N/A |
36 Months | 4.30% | 4.25% |
48 Months | 4.00% | N/A |
60 Months | 4.00% | 4.10% |
Ally Has Higher Rate On No Penalty CD
If you're looking for a no penalty CD, both companies can be a perfect fit for you.
While Ally's rate is a bit higher, both banks offers a competitive rate on no penalty CD and it can be a good idea if you may need the money before maturity and want to avoid early withdrawal penalty.
Synchrony Bank | Ally Bank | |
|---|---|---|
11 Months | 4.10% | 4.25% |
Which Is Better If You Need An Early Withdrawal?
The penalty amount can either be a percentage of the earned interest or a fixed number of days' worth of interest. Its purpose is to compensate the institution for the costs associated with the early withdrawal, including lost interest and administrative expenses.
Ally Bank imposes lower early withdrawal penalties on CDs compared to Synchrony Bank, as evidenced by the table below. So, in case you need your money earlier than expected, Ally is a better bank for you.
CD Term | Synchrony Bank | Ally Bank |
|---|---|---|
3 Months | 90 days of interest | 60 days of interest
|
6 Months | 90 days of interest | 60 days of interest |
9 Months | 90 days of interest | 60 days of interest |
12 Months | 90 days of interest | 60 days of interest |
18 Months | 180 days of interest | N/A |
24 Months | 180 days of interest | N/A |
36 Months | 180 days of interest | 90 days of interest |
48 Months | 365 days of interest | N/A |
60 Months | 365 days of interest | 150 days of interest |
CD Alternatives: What Do Ally And Synchrony Offer?
Ally High-Yield Savings Account | Synchrony High Yield Savings | |
|---|---|---|
Savings Rate | 3.85% | 4.15% |
Minimum Deposit | $0 | $0 |
Fees | $0 | $0 |
Promotion | None | None |
Ally High-Yield Savings account offers an interest rate over 10 times the national average, no monthly maintenance fees, no minimum balance requirements, and 24/7 customer support.
It also has savings organization tools, such as “buckets” for different savings goals, Safe to Save feature to boost savings balance, and Round Ups to round up transactions to the nearest dollar and transfer the funds to the High Yield Savings Account.
On the other hand, Synchrony online savings account offers high-yield rates over 10 times the national average APY, no minimum balance requirements, free ATM access up to $5 per month, and no maintenance fees. The account also offers multiple withdrawal methods and a savings goal calculator.
