Ally Bank offers multiple financial products, encompassing investment accounts, bank cards, mortgages, auto loans and private loans. On the banking side, Ally provides a checking account together with additional saving options, including a money market account, three sorts of certificate of deposit (CD) accounts and a high-yield savings account.
We researched the Ally high-yield savings account to offer a comprehensive review of its benefits and drawbacks, annual percentage yield (APY), fees and overall customer experience. Moreover, we examined Ally Bank’s other savings products.
Keep reading to seek out out if Ally Bank aligns together with your savings objectives.
Best high-yield savings account with tools to assist you save
Among the many best high-yield savings accounts, Ally Bank stands out for its free saving tools. You should use “buckets” to allocate funds for specific financial goals, corresponding to an emergency fund or an upcoming vacation.
Ally also offers automated savings “boosters” that include:
- Recurring transfers: Schedule automatic transfers to your high-yield savings buckets.
- Round ups: Mechanically rounds up your Ally Bank checking account debits to the closest dollar and deposits the change into your savings in $5 increments
- Surprise savings: This booster evaluates your spending habits to discover funds which can be protected to save lots of. Ally sends these funds to your account in increments of $100 or less, not more than thrice per week. This feature works with checking accounts from any financial institution.
You possibly can turn off or edit these automated savings tools at any time.
Ally Bank high-yield savings accounts pros and cons
- Competitive annual percentage yield (APY)
- No monthly maintenance fees
- No minimum opening deposit requirement
- No overdraft fees
- No money deposits accepted
- Limit of 10 withdrawals per statement cycle
- No ATM access or debit card
Pros explained
Competitive annual percentage yield (APY)
Ally Bank offers a competitive rate on its high-yield savings account, in comparison with the national average as indicated by the Federal Deposit Insurance Corporation (FDIC). Its other savings products, corresponding to the cash market account and certificates of deposits (CDs), also offer strong rates of interest.
No monthly maintenance fees
Other banks may charge a monthly maintenance fee for savings and checking accounts, which may sometimes be waived by meeting a minimum balance requirement or other conditions. Nevertheless, with Ally, there aren’t any requirements of this type. The Ally high-yield savings account has no monthly maintenance fee.
No minimum opening deposit requirement
You possibly can open any of Ally’s various savings accounts without an initial deposit. Nevertheless, you should deposit funds (of any amount) inside 30 days; otherwise, Ally Bank may close your account. You possibly can deposit funds through several methods, corresponding to online transfer from one other account, direct deposit, distant check deposit, wire transfer or check by mail.
No overdraft fees
Ally Bank doesn’t impose fees for overdrafts in your high-yield savings account. Nevertheless, in case your account lacks sufficient funds to finish a transaction, Ally Bank may decline the transaction.
Cons explained
No money deposits accepted
Some online banks with no physical branches provide a solution to deposit money, corresponding to at a neighborhood retailer. Nevertheless, Ally doesn’t support money deposits in any respect. Deposits should be made by online transfer from one other account, direct deposit, wire transfer ($20 fee), check by mail or distant check deposit.
Limit of 10 withdrawals per statement cycle
The Ally high-yield savings account has a limit of 10 withdrawals per statement cycle. There is no such thing as a fee for exceeding this limit, but Ally reserves the correct to shut your account should you violate this rule regularly.
Note that Ally Bank’s money market account allows unlimited withdrawals via debit card at ATMs. The high-yield savings account, nonetheless, doesn’t include a debit card.
No ATM access or debit card
Most high-yield savings accounts don’t typically include an ATM card for withdrawals or a debit card usable for point-of-sale purchases. While many financial institutions now provide this profit, Ally Bank’s high-yield savings account will not be considered one of them.
Ally Bank high-yield savings account offerings
Ally Bank offers online savings accounts and money market accounts that will let you deposit and withdraw funds indefinitely. It also has several certificate of deposit (CD) options.
High-yield online savings account
The Ally high-yield savings account (HYSA) offers a competitive annual percentage yield (APY) and no monthly maintenance fee or overdraft fees. While there isn’t any minimum deposit required to open the account, you should deposit funds inside 30 days or risk the closure of your account.
A serious highlight of Ally Bank’s HYSA is its multiple savings tools. These features could be edited and turned on or off at any time. Savings tools include:
- Savings buckets: Put aside funds in savings buckets for designated goals, corresponding to a house renovation or emergency fund.
- Recurring transfers: Schedule automatic transfers to your high-yield savings buckets.
- Round ups: This feature rounds up your Ally Bank checking account debits to the closest dollar and deposits that quantity into your savings in $5 increments.
- Surprise savings: Ally evaluates your checking account spending habits and identifies funds suitable for saving. Money is then transferred to your Ally high-yield savings account in increments of $100 or less, limited to not more than thrice per week. The Surprise savings feature is offered with a checking account from any financial institution.
There is no such thing as a debit card for Ally’s high-yield savings account, so you can not withdraw via ATM. As a substitute, you possibly can withdraw through a web-based transfer to a different checking account, an outgoing wire transfer ($20), by phone or by requesting a check.
Ally limits withdrawals on its HYSA to 10 per statement cycle, but there’s no fee should you exceed this amount. Note, though, that should you exceed 10 withdrawals regularly, Ally Bank may close your account.
Ally Bank certificate of deposit (CD) offerings
Ally Bank offers three sorts of certificate of deposit (CD) accounts: the high-yield CD, the Raise Your Rate CD and the No Penalty CD. While each has different pros and cons, all of them share these features:
- No minimum deposit required
- No monthly maintenance fee
- Guaranteed best available rate should you fund inside 10 days of opening
- Renew your CD at maturity for a bonus APR increase
- Fund your account via online transfer or Ally mobile app from an Ally Checking account or account from one other financial institution
Below you’ll find more information in regards to the three certificate of deposit (CD) options available through Ally Bank.
High-yield Certificate of Deposit (CD)
The Ally Bank high-yield CD provides a variety of terms, including three months, six months, nine months, one 12 months, 18 months, three years or five years. Fixed rates of interest vary by term length, with the best annual percentage yield rates offered for nine months and 1-year terms. The penalty for early withdrawal is 60 to 150 days of interest, depending on the CD term length.
Raise Your Rate Certificate of Deposit
The Raise Your Rate Certificate of Deposit (CD) offers flexible terms of two and 4 years. Should the annual percentage yield rate increase before your CD matures, you have got the choice to change to the upper rate. With Ally, you possibly can make one rate change for a two-year term and as much as two changes for a four-year term.
Nevertheless, the starting APR for this CD is barely lower in comparison with Ally’s high-yield or no-penalty CD. Moreover, the penalty for early withdrawal is 60 to 150 days of interest, depending on the length of the CD term.
No Penalty Certificate of Deposit
Ally’s no-penalty CD stands out for its 11-month term, offering greater flexibility in comparison with its other CD decisions. From day seven following your initial deposit, you possibly can withdraw all of the funds without losing any earned interest. This selection earns the best annual percentage rate amongst all of the CD offerings available at Ally Bank.
Ally Bank’s money market account offerings
Ally’s money market account offers a competitive annual percentage rate that’s barely higher than the high-yield savings account APY. Moreover, this account comes with checks and a debit card which you can use without fees at any Allpoint ATM. (Ally reimburses as much as $10 in out-of-network ATM fees per statement cycle.)
While this account allows unlimited ATM withdrawals, there’s a cap of 10 withdrawals for online or mobile banking transfers, checks and point-of-sale transactions (like debit card purchases). Note that exceeding this limit doesn’t incur a fee, but frequent breaches of this limit could lead on Ally Bank to shut your account.
Ally’s money market account has no monthly maintenance fees or overdraft fees. There’s also no minimum balance to open an account, though you should fund your account inside 30 days of opening to avoid possible closure.
Ally Bank high-yield savings account pricing
The Ally Bank high-yield savings typically comes with none fees. There aren’t any monthly maintenance fees, no overdraft fees and no charges for surpassing the withdrawal limit of 10 transactions per cycle.
Nevertheless, there are just a few costs to remember:
- Outgoing wire transfers – $20
- Expedited check delivery – $15
- Account research – $25 per hour
Moreover, Ally’s high-yield and raise-your-rate CDs have early withdrawal penalties various based on the term length.
The quantity of interest you’ll forfeit is as follows:
- Two-year term or shorter – 60 days of interest
- Three-year term – 90 days of interest
- 4-year term – 120 days of interest
- Five-year term -150 days of interest
Ally Bank high-yield savings account financial stability
Ally Bank operates under its parent organization, Ally Financial. Fitch Rankings has given Ally Financial a BBB- long-term issuer default rating and a BBB- viability rating. While these rankings are below the top-tier AAA rating, they reflect Ally’s robust financial standing and indicate a low likelihood of default.
Ally Bank high-yield savings account accessibility
Even without physical branches, Ally Bank is accessible through its website, mobile app and 24/7 customer support. You possibly can open an account nationwide and profit from a competitive Ally high-yield savings APY.
Availability
All Ally Bank high-yield savings account options can be found to U.S. everlasting residents and residents in all 50 states, plus the District of Columbia. The minimum age requirement is eighteen, and you should have a U.S. street address.
Contact information
You possibly can call 877-247-2559 to achieve Ally Bank’s 24/7 customer support line. Alternatively, log in to the Ally Bank customer portal online or via the Ally Bank mobile app to talk with a representative. Ally Bank also offers a secure email option should you don’t need real-time support.
User experience
Opening an Ally checking account throught the Ally Bank mobile app and website is an easy, streamlined process. You may also monitor your balances and handle on a regular basis transactions, corresponding to online transfers to and from other bank accounts. The digital banking interface is seamless and provides a snapshot of your accounts and access to 24/7 support.
Ally Bank high-yield savings account customer satisfaction
Ally Bank will not be accredited on the Higher Business Bureau (BBB) site, but its listing shows a mean customer review rating is 1.14 out of 5. Some customers expressed frustrations interacting with customer support or logging into their online accounts, and customers on other review sites shared similar concerns. One other third-party review site shows a similarly poor overall rating, with reviews echoing lots of the same issues.
Some positive reviews show customer satisfaction around high annual percentage yields on savings products, ease of opening an account and customer support representatives who were especially helpful.
Ally Bank high-yield savings account FAQs
Is Ally Bank FDIC-insured?
As a FDIC member, Ally ensures the protection of deposits by providing Federal Deposit Insurance Corporation coverage of as much as $250,000 per depositor. This coverage extends to every account ownership category, including individual and joint accounts. This protection offers peace of mind that your funds are protected within the event of Ally facing financial challenges.
Ally Bank is a member FDIC bank, which suggests your funds are insured as much as $250,000 per depositor, per bank by the Federal Deposit Insurance Company. Moreover, the bank has several safeguards to guard you as you do your online banking. It also keeps your data confidential.
Are online savings accounts at Ally Bank compounded day by day?
Ally compounds interest day by day on all online savings accounts. This permits you to higher profit from the results of compound interest than with less frequent compounding methods. You possibly can seek the advice of a compound interest calculator for examples.
Ally Bank is a product of Ally Financial, Inc., which is owned by shareholders. A few of these shareholders include Berkshire Hathaway, Inc., The Vanguard Group., Inc., Harris Associates LP and BlackRock Fund Advisors.
How we evaluated Ally Bank’s high-yield savings account
We evaluated Ally Bank’s high-yield savings account options based on these criteria:
- Product offerings: We checked out the range of accounts Ally Bank offers, including CDs, money market accounts and high-yield online savings accounts.
- Rates of interest: We compared Ally’s high-yield rate of interest offerings to each national average rates and competitors’ rates.
- Fees and penalties: We researched Ally Bank’s fees, corresponding to fees for monthly maintenance, overdrafts and excessive transactions. We also evaluated the penalties for withdrawing funds early from CDs.
- Account requirements: We assessed if Ally requires a minimum opening deposit or monthly balance for its accounts. We also considered eligibility for opening an account.
- Customer reviews: We analyzed the BBB and other customer review web sites to discover common positive and negative experiences coping with Ally.
- Customer support options: We evaluated Ally Bank’s online and phone support options and their availability.
- Accessibility: We examined the accessibility of Ally’s website and mobile app from a customer’s perspective. We also considered any shortcomings attributable to an absence of physical branches.
Summary of Money’s Ally Bank high-yield savings account review
The Ally high-yield savings account offers an above-average annual percentage yield, plus several free savings tools that will assist you put aside more funds. Moreover, Ally Bank charges no monthly maintenance fees, which suggests you possibly can save without worrying about fees canceling out your earned interest.
Ally Bank also offers three sorts of certificate of deposit (CD) accounts, plus a money market account. These accounts are also freed from fees, except early withdrawal penalties on CDs. Nevertheless, Ally doesn’t accept money deposits, which could also be a difficulty for some customers.
Before deciding on an insurance product, it’s sensible to explore various options, especially considering APRs fluctuate usually. If you happen to’re latest to saving, familiarizing yourself with a high-yield savings account may very well be helpful.