Table Of Content
Citibank and Ally Bank are two financial institutions that offer competitive CD rates to their customers. However, understanding the details of each bank's CD offerings, including early withdrawal fees and minimum deposit requirements, can be critical in making the most of your investment.
In this article, we'll compare Citibank and Ally Bank's CD rates and explain how they work. We'll also delve into the details of early withdrawal fees and minimum deposit requirements, giving you the knowledge you need to make an informed decision about where to invest your money.
Here's a general CD comparison:
Ally Bank CDs | Citi Bank CDs | |
|---|---|---|
CD Range | 3.00% – 5.15% | 0.05% – 5.65% |
Minimum Deposit | $0 | $500 – $2,500 |
Early Withdrawal penalty | 60-150 days of interest | 90 -180 days of interest |
Term | 3 – 60 months | 3 months – 5 years |
Compare CD Rates: Ally Bank vs. Citibank
The table compares the CD rates offered by Ally Bank and Citibank for specific terms.
Based on the comparison, Ally Bank generally offers higher CD rates than Citibank for most CD terms, except for the 3-month term. The differences are significant in other terms, so unless you need a short-term CD, Ally is the winner here.
CD Term | Ally Bank APY | Citi Bank APY |
|---|---|---|
3 Months | 3.00% | 0.05% |
6 Months | 3.50% | 1.10% |
9 Months | 5.00% | 4.30% |
12 Months | 5.00% | 4.30% |
18 Months | 5.15% | 2.50% |
24 Months | N/A | 2.50% |
30 Months | N/A | 0.10% |
36 Months | 4.25% | 2.50% |
48 Months | N/A | 2.50% |
60 Months | 4.10% | 2.50% |
No Penalty CD: Ally Is The Winner
Both Ally and Citibank offer a no-penalty CD, which is a great advantage since this type of CD is not so common.
When it comes to rates, Ally is the winner here as well as you can see in the following table.
Ally Bank | Citi Bank | |
|---|---|---|
11 Months | 4.55% | N/A |
12 Months | N/A | 4.25% – 4.75% |
Early Withdrawal: Ally's Penalty Wins
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.
When withdrawing a CD early, the table below shows that Ally Bank is the superior option, as the required penalty is lower than Citibank.
CD Term | Ally Bank | Citi Bank |
|---|---|---|
3 Months | 60 days of interest | 90 days of interest
|
6 Months | 60 days of interest | 90 days of interest |
9 Months | 60 days of interest | 90 days of interest |
12 Months | 60 days of interest | 90 days of interest |
18 Months | N/A | 180 days of interest |
24 Months | N/A | 180 days of interest |
30 Months | N/A | 180 days of interest |
36 Months | 90 days of interest | 180 days of interest |
48 Months | 6 of months interest | N/A |
60 Months | 150 days of interest | 180 days of interest |
CD Alternatives: What Do Citibank And Ally Offer?
Citi Accelerate Savings | Ally High-Yield Savings | |
|---|---|---|
Savings Rate | 4.25% | 4.25% |
Minimum Deposit | $0 | $0 |
Fees | $4.50/$10 per month
Can be waived if you maintain an average combined monthly balance of $500/$1,500 in your eligible accounts, make one enhanced direct deposit or one qualifying bill payment per statement period
| $0 |
Promotion | $100 – $5,000
Minimum deposit of $10,000 – $1,000,000+ needed. Expired on 07/07/2023
| None |
If you are looking for alternatives to CDs, both Ally and Citi offers competitive rates on savings account, which is the main alternative to CDs.
Citi's Accelerate Savings Account is a flexible and simple option that provides a competitive interest rate of 4.25% with no minimum deposit requirement or complex fees.
It offers an all-in-one banking solution and features like overdraft protection, automated savings, and mobile check deposit. This account is perfect for those who want to manage their finances in one place and set up automated transfers.
In contrast, Ally High-Yield Savings offers a high interest rate, no minimum balance or maintenance fees, 24/7 customer support, and unique features like Safe to Save, Round Ups, and buckets to organize multiple savings goals. It is ideal for individuals who want to grow their savings without worrying about extra costs.
