Saving money for big one-time purchases or to have in case of an emergency is an important part of money management that everyone should be taking part of to help secure a solid financial future for themselves or their family. A high-yield savings account can be a useful in these cases, offering a larger annual percentage yield (APY) than a just a ‘regular’ savings account along with the safety of federal insurance. Above all, if you are looking for a high-yield, interest-bearing savings account with good rates and low fees, an online savings account from Ally Financial may be the right fit for you.
What is an Ally Online Savings Account ?
Ally is a full-service online bank with very competitive rates and 24/7 customer support. Furthermore, Ally online savings accounts have no minimum balance requirements or service fees. As of July 2021, Ally currently offers its members a 0.50% APY on any amount held in their savings accounts with interest that compounds daily.
What are the Account Fees for an Ally Online Savings Account?
Because Ally is an online-only banking experience, it doesn’t have to put money into physical branches; therefore, Ally is able to offer better rates and fees than brick-and-mortar institutions and can invest more in its products.
Furthermore, here is the current rate schedule for Ally Online Savings Accounts:
|Monthly maintenance fee||$0|
|Standard or expedited ACH transfers||$0|
|Copies of online statements||$0|
|Incoming wires (domestic or international)||$0|
|Postage-paid deposit envelopes||$0|
|Official/ Cashier’s Checks||$0|
|Return deposit item||$7.50|
|Overdraft item paid or returned (1 fee max. per day)||$25|
|Excessive transactions||$10/ transaction|
|Outgoing domestic wire||$20|
|Account research fee||$25/hour|
What Are The Benefits of an Ally Online Savings Account?
In this section, we’ll discuss what current customers have most often said are the advantages of their Ally online savings account.
- Higher than average APY
- No maintenance fees or minimum deposit required to open the account (Minimum balance for APY is $1)
- Access to your account any time via online or mobile banking
- Easy to electronically deposit checks, make free electronic transfers, and pay bills
- 24/7 customer support
- You can open as many savings accounts as you want – which is a great tool if you are saving for multiple goals
- Works with Amazon Alexa. Just say “Alexa, open Ally” and ask for your balance, make a transfer, hear recent transactions or get today’s rates
What Are The Disadvantages of an Ally Online Savings Account?
In this section, we’ll discuss what current customers have most often said are the disadvantages of their Ally online savings account.
- Ally savings account are online only – there are no physical branches.
- You can’t deposit cash. They only accept transfers or mobile-check deposits.
- Ally charges $10 for every outbound transfer after the sixth one in a billing cycle.
- No ATM card for their savings accounts.
Although 0.50% APY is one of the best ones you will find in the current market, there are some competitors with higher.
As of July 2021, here are some rates from competitors that you may want to check out:
- Aspiration Bank – 1.00% APY
- Vio Bank – 0.57% APY
- CIBC Bank – 0.52% APY
- Ally Bank – 0.50% APY
- Citi Accelerate – 0.50% APY
- First Foundation Bank Online Savings – 0.50% APY
- Goldman Sachs – Marcus Account – 0.50% APY
- Synchrony Bank – 0.50% APY
- TAB Bank – 0.50% APY
- TIAA Bank – 0.50% APY
- American Express Personal Savings – 0.40% APY
- Barclays Bank – 0.40% APY
- Capital One 360 Performance Savings – 0.40% APY
- CIT Bank Savings Builder – 0.40% APY
- Citizens Access – 0.40% APY
- Discover – 0.40% APY
- MySavingsDirect – 0.25% APY
- HSBC Direct – 0.15% APY
Is An Ally Online Savings Account FDIC-Insured?
Yes. Ally Bank is a FDIC member. Therefore, funds deposited in an Ally Savings Account are insured up to the maximum allowed by law. Although it doesn’t have physical locations like traditional banks, Ally follows the same rules and legal regulations.
The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation providing deposit insurance to depositors in U.S. commercial banks and savings institutions. The FDIC insures deposits according to ownership category (such as individual, joint or accounts with beneficiaries). That said, the current maximum amount is $250,000 per depositor, per insured bank, for each account ownership category.
How Do You Open An Ally Online Savings Account?
The application process for an Ally Online Savings account usually takes the average member 5-10 minutes to complete the application online. In other words, signing up is a quick and convenient process!
First, visit Ally.com
Next, click “Open Account” to be redirected to the Account Application
Then, fill out your personal details
and finally, fund your account.
Furthermore, since there’s no minimum opening deposit required, you don’t need to do this immediately. When you’re ready, you can start depositing money into your new savings account.
That’s it! Once your account is active, you can log on any time 24/ 7 to deposit and withdraw funds or make changes. After that, you can also set up automatic deposits into your account to effortlessly build your savings.
How To Access Your Ally Online Savings Account:
Online: Access your account by logging in with your username and password on: https://www.ally.com
Mobile Device: Bank on your phone/tablet through their mobile app – which you can find in the iTunes App Store or Google Play, for instance.
Phone: You can call Ally at the following phone numbers 24/7:
Within the U.S.: 1-877-247-2559
Outside the U.S.: +1 757-247-2559
Hearing impaired: 1-877-320-255
In conclusion, Ally Bank is one of the most reputable online banks in the industry. Even though they are an online-only bank with no physical branches and they do not accept cash deposits, their savings accounts do not require you to make a minimum deposit or require you keep a certain amount in your account, and there are no maintenance fees. Above all, it’s an excellent choice for someone who wants to bank on-the-go while enjoying a higher than average APY and daily compounding interest with the security of federal insurance.
Banking Health Score
There are many banks and financial institutions to choose from and it is important to be able to distinguish the good from the bad. Our team reviews each bank on a monthly basis to ensure that the information we share is as up to date as possible. Not only is the financial strength of a company important, but also how well their customer service is rated by actual customers like you.
We also believe that in order to determine how well a bank is functioning, that several sources should be utilized to compare one bank to another.
That said, here is a list of scores from trusted sources that you should consider before making your banking decisions.
Ally – Bank Health Scores
Bank Professor’s Bank Score = ⭐⭐⭐⭐⭐ 5 stars out of 5 stars
- Bankrate’s Safe and Sound Rating: 4.4 out of 5 stars
- BauerFinancial Star Rating: 5 out of 5 stars
- BankTracker Troubled Asset Ratio: 4.89
- FDIC: Actively insured
More about the rating system:
- BankProfessor rates banks monthly on a one-to-five scale based on revenue, net income, total assets, total equity, capital ratio, customer reviews, rating agency scores, profitability, and troubled asset ratio.
- Bankrate.com ranks banks and credit unions quarterly on a one- to five-star system, with one being the lowest rating and five the highest. The rating is given based on regulatory filings about the financial institution’s capital adequacy, asset quality, profitability and level of cash available. It compares those levels with peer and industry norms.
- BauerFinancial offers a similar star rating system as Bankrate (a one- to five-star system, with one being the lowest rating and five the highest).
- BankTracker was created by the Investigative Reporting Workshop of American University and MSNBC.com. They determine a bank’s troubled asset ratio. According to the site, the ratio is “a strong indicator of severe stress inside a bank because it shows the bank’s ability to withstand loan losses”. In other words, the higher the ratio, the more “trouble” they are in.
How to Close An Account with Ally Bank
If you wish to close your account with Ally Bank, you will first need to make sure that all pending transactions have cleared before you start transferring any money out of the account. Then, contact the bank at 1-877-247-2559 or send correspondence via mail to Ally Bank Customer Care P.O. Box 951 Horsham, PA 19044
All account closure requests will need to be made in writing (even if you call first). When you speak with a customer service representative, make sure to ask if they prefer written requests to be received via standard mail or e-mail or fax.
You should receive a response or confirmation of account closure within a few business days.
Ally Bank also states in their Customer FAQ’s that you will be able to still access your closed account information online for 60 days and you’ll have the ability to still view statements and tax forms for the last 7 years online.
Ally Financial is a bank holding company currently headquartered in Detroit, Michigan. The company was founded in 1919 by General Motors (GM) as the General Motors Acceptance Corporation (GMAC) to provide financing to automotive customers. Then, in May 2010, GMAC re-branded itself as Ally Financial. Furthermore, the current offerings from Ally are: car financing, online banking, mortgages, credit cards and brokerage firm. Ally is ranked 19th on the list of largest banks in the United States by assets, and is the currently the largest car finance company in the U.S. by volume.