Banking » Compare Banks » Comparing CD Rates: Capital One vs Ally
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Comparing CD Rates: Capital One vs Ally

Capital One and Ally offers a competitive CD rates and a variety of terms. Here's a full comparison and where Ally is a clear winner
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: June 3, 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: June 3, 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

Capital One and Ally Bank are two prominent online banks that offer CDs with competitive rates and terms. Whether you are looking for a short-term or long-term investment option, Capital One and Ally Bank offer a range of CD terms to choose from.

In this article, we will compare the CD rates offered by Capital One and Ally Bank, as well as other important factors such as minimum deposit requirements, how their CDs work, and early withdrawal penalties. 

Capital One
Ally
CD Range
3.90% – 5.00%
3.00% – 4.50%
Minimum Deposit
$0
$0
Early Withdrawal penalty
3-6 months of interest
60-150 days of interest
Term
6 – 60 months
3 – 60 months

How Do CD Rates Compare?

When comparing Capital One and Ally, we can see the rates are quite similar, with a small advantage for Ally. In most terms Ally offers a slightly higher rate than Capital One offers.

On the other hand, Capital One offers more terms than Ally – there are very short term CDs of 3 months (not available with Ally) as well as options for 18 and 30 months.

If you're looking for 6-month CDs, the rates are quite similar.

CD Term
Capital One APY
Ally APY
3 Months
N/A
3.00%
6 Months
4.25%
4.40%
9 Months
4.25%
4.25%
12 Months
5.00%
4.50%
18 Months
4.45%
4.45%
24 Months
4.00%
N/A
30 Months
4.00%
N/A
36 Months
4.00%
4.00%
48 Months
3.95%
N/A
60 Months
3.90%
3.90%
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Savings Rate: 4.75% APY APY

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Capital One CD Vs Ally CD: How They Work?

The Capital One 360 CD option stands out as a flexible choice for savers, as there is no minimum deposit requirement, making it accessible to individuals who are just starting to build their savings. Interest is calculated daily and compounded, with payments made monthly throughout the term of the CD.

However, if you need to withdraw money before the term is up, you will be charged an early withdrawal penalty. The penalty can range from three months of earned interest to six months of earned interest, depending on the terms of the agreement.

Open CD Capital One
Open CD with Capital One (Screenshot taken by our team from Capital One Bank)

Besides the regular options, Ally Bank also offers a unique “Raise Your Rate” CD option that comes in either a two-year or four-year term.

While the starting rate for this CD is lower than the average rate on the High Yield CD, the benefit is that customers have the option to increase their rate once for the two-year term or twice for the four-year term if the Ally CD rate goes up during the term.

 
Ally raise your rate
(Screenshot from Ally Bank, rates are not updated)

Compare CD Early Withdrawal Penalty

When it comes to early Withdrawal Penalty, Ally is the winner.

Ally offers lower penalties compared to Capital One across the board, and actually, Ally is one of best CD options when it comes to flexibility – their penalties are among the lowest available.

CD Term
Capital One
Ally
3 Months
N/A
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
3 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
6 months of interest
150 days of interest

When It Comes to No Penalty CD - Ally Wins

Ally Bank also offers a no-penalty CD option, which boasts a higher current rate than the shorter-term Ally High Yield CDs and is considered one of the best no-penalty CD rates available.

One of the benefits of this CD is that customers are not locked into the maturity of the CD, which provides more flexibility for those who may need to access their funds before the end of the 11-month term.

Although there are no early withdrawal penalties, a withdrawal cannot be made until six days after the account is opened.

CD Term
APY
Ally Bank 11 Months – No Penalty
4.00%
Ally no penalty CD
(Screenshot from Ally Bank, rates are not updated)

About Ally Bank

For customers seeking a departure from traditional brick-and-mortar banking, Ally Bank is a highly regarded choice due to its competitive APYs and minimal fees. As a leader in online banking, Ally Bank provides a range of deposit account options, along with attractive interest rates, making it a top choice in the field.

Although Ally Bank only offers one checking account and one savings account, both are considered among the best available, and notably, there are no minimum balance requirements for either account.

About Capital One Bank

Capital One offers attractive rates and fee-free accounts to suit various banking needs. Although it has some branches and Capital One Cafés in certain locations, Capital One is primarily recognized as an online bank.

Through its Capital One 360 banking platform, customers can benefit from the high interest rates of an online challenger bank, while also enjoying the convenience of a vast ATM network and branches for in-person transactions. Capital One's simplified checking and savings accounts are competitive when compared to most other banks.

In addition to these account options, Capital One also provides savings accounts, auto loans, and a diverse range of credit cards, including those with no foreign transaction fees.

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The product offers that appear on this site are from companies from which this website receives compensation. 

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Savings Rate: 5.21% APY
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Savings Rate: Up to 5.00% APY
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Savings Rate: 4.50% APY

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Savings Rate: 4.75% APY

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CD Rate: 5.00% – 5.20% APY
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The product offers that appear on this site are from companies from which this website receives compensation.

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 CD Rates

Picture of 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.
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CD Rate: 5.00% – 5.20% APY
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