Ally Bank (the internet banking division of GMAC) is offering a new type of 24 month CD – one that you can lock in it’s current rate of 1.50% APY now, and then if rates go up you have ONE chance to upgrade your CD account to the new rate. This is now called Ally’s Raise your Rate CD. Then if rates continue to go up you have to wait until your CD matures but at least you can participate in a major rate hike if one occurs during the next two years.

Unless there is another major financial meltdown, you can bank on CD rates increasing over the next 24 months so Ally’s upgradable CD is a good way to earn a good rate now without having to worry about not being able to participate in rate increases over the next two years.

Just for comparison sake, Discover Bank is offering a similar 24 month CD with a minimum deposit of $2500 which won’t let you upgrade and Ally’s CD is only .1% less and both banks are in the top 10 best nationwide CD rates according to BankRate.

Ally Bank is FDIC insured and compounds interest daily(you earn interest on your interest) so you money grows faster. Unlike Discover’s CD, Ally Banks CD requires no minimum deposit or balance to earn the 1.90% APY.

Ally charges you no monthly fees and for 10 days after opening your account if their rates increase, you automatically qualify for the better rate – it’s called the Ally Ten Day Best Rate Guarantee.

Warning: if you sign up for this CD, it will automatically renew at maturity so if you want to withdraw the interest as income or want to cancel the automatic renewal, you will need to let Ally know before the maturity date or 10 days after. If you need the flexibility of being able to withdraw your money, Ally Bank Money Market has a high interest rate, with debit card and checking.

Ally bank is one of the best online banks and we have written a comprehensive Ally bank review. You can also learn more about Ally Bank in our Video Review. If you like Ally Bank’s CDs, you will probably like Ally Bank’s Savings Account. Also, we now have an Ally Bank Rating page where you can see our staff ratings and user ratings.