Ally Bank Ups Savings Account Rate to Highest Level Since 2011

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Deal Summary: Online Savings Account, 1.05% APY, No minimum balance

Availability: Internet Bank

This morning, Ally Bank increased the rate of its Online Savings Account by 5 bps. The new rate is now 1.05% APY. This also applies to the IRA Online Savings Account. The 1.05% APY applies to all balances. The account has no monthly maintenance fees and no minimum balance requirement.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.05*%--Ally BankIRA Online Savings Account (Traditional, Roth, SEP)
1.05*%--Ally BankOnline Savings Account
Accounts mentioned in this post. Rates as of April 27, 2017.

Last month’s Fed rate hike appears to be having some effect. On Monday, Ally increased its 5-year CD rate to a level not seen since 2011, and today Ally raises its savings account rate to its highest level since 2011. The last time Ally increased the rate of its savings account was September 2015 when the APY inched up from 0.99% to 1.00%. Its lowest rate was 0.84% during two periods in 2012 and 2013. The rate slowly increased in 2014 when it finally reached 0.99% in December 2014. The last time Ally's savings account was at 1.05% was in March of 2011.

Ally Bank’s money market account rate remains at 0.85% APY for all balances. The advantage of the money market account over the savings account is that it offers limited check writing and debit card access. For several years, Ally’s money market account used to have the same rates as the savings account. That ended in January 2014 when the savings account rate started to rise above 0.85% while the money market rate held steady.

Ally’s savings account doesn’t have a history of being a rate leader for internet banks, but it has remained competitive for many years. Plus, it has features that other internet banks don’t have. One nice feature is Ally’s online transfer capabilities. It’s easy to link multiple external accounts for transfers. Ally allows large transfers to and from external accounts, and the transfers take place in one business day.

Another nice aspect of all of Ally’s accounts is the ability to designate beneficiaries. You can choose up to 10 beneficiaries for each of your non-IRA accounts, and you can choose the designation of either “In Trust For” or “Payable On Death”. Beneficiary designations can be done online in the application or with the account management software after the account has been opened. Ally also allows customers to open an account in the name of a Trust. These feature makes it easy to maintain FDIC insurance on deposits in excess of $1 million. I described how this can be done in this blog post.

Thanks to DA reader buckeye61 who posted on the higher rate in the DA Forum.

Availability

Headquartered in Midvale, Utah, Ally Bank is currently the 23rd largest bank in the country, with assets in excess of $114 billion and over 2.2 million customer accounts. Ally offers its services and product line to individuals 18 years or older, who have a valid Social Security number and a U.S. mailing address.

Applying for an account can be done using Ally Bank’s online application or by calling Ally (877-247-2559). You can fund your new account in a few different ways:

  • Transfer from an Ally or non-Ally account
  • Check (by mail or Ally eCheck Deposit)
  • Wire transfer

Bank Overview

Ally Bank (FDIC Certificate # 57803) has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 1.76% (excellent) based on December 31, 2016 data. In the past year, Ally has increased its deposits by $11.15 billion, an excellent annual growth rate of 20.04%. Please refer to our financial overview of Ally Bank for more details.

How the Online Savings Account Compares

When compared to 211 nationally-available savings accounts from banks and credit unions tracked by DepositAccounts.com, only 5 banks offer higher rates for deposits under $10k. Four internet banks (CIT, Synchrony, GS and AloStar) and Alliant Credit Union also offer 1.05% APY on their savings accounts. The table below shows how Ally’s savings account compares with two of the top nationally-available savings accounts:

Interest RateMinimum balanceInternet Bank
1.25% APYnoneDollarSavingsDirect
1.15% APYnonePopular Direct
1.05% APYnoneAlly Bank

The above rates are accurate as of 4/21/2017.

To find the top savings account and money market rates, both nationwide and in your local area, please refer to our savings account rates table, our money market rates table or our Rates Map page.


Comments
dgdevil
dgdevil   |     |   Comment #1
Weird. Still showing 1.00% for my account when I logged in minutes ago.
Cracker
Cracker   |     |   Comment #10
Same here, but it fixed itself overnight. I hope it's effective as of yesterday for current customers because I have a sizeable balance in that account.
Really?
Really?   |     |   Comment #2
Oh Gee!! Now I can retire!! Again.....why is this news??? This rate has been available at other banks for months.....probably years. And you can even do much better. I have Redneck at 1.25%.
Why does Ally seem to get such favorable coverage?? They're ok but for rates you can do much better.
crybaby
crybaby   |     |   Comment #3
Some people complain about everything. WAAAA rates are going up!
Si
Si   |     |   Comment #4
For me personally, it's news because I'm an account holder (for a variety of reasons beyond just the rate), even while understanding that they're merely in the top 15 of nation-leading rates and not #1 overall, as you point out. I also view Ally as the most reliable and informed barometer of the prospects of future rate moves of other top-tier internet banks.
InterestYields
InterestYields   |     |   Comment #6
Yeah my first thought (I was tempted to quip with was).. Retirement here I come ;-).. but I do really appreciate this site's reporting of both bank features+interest rate trend tracking (high five Ken+contributors:). Unfortunately given inflation trends visible at http://www.global-rates.com/economic-indicators/inflation/consumer-prices/cpi/united-states.aspx not even CD rates (nearly none) have kept up with recent inflation trends, obviously impacting the real rate of return, so let's hope the FED gets more hawkish..
decades
decades   |     |   Comment #11
I was thinking about retiring 10 years ago ...then rates crashed...so I kept working ..now have twice as much money but rates are less than half what they were :( need twice as much space and half as many things !
!!!
!!!   |     |   Comment #7
As always good information and some intelligent comments, along with not so intelligent.........
Alcoholics_Anon
Alcoholics_Anon   |     |   Comment #8
Because they're really All America Bank in a donkey's clothing? Or, maybe it's because they don't offer much of anything else?
rhutnik
rhutnik   |     |   Comment #5
I'm not gonna complain when I see a Savings Account rate increase. I hopped on the No Penalty CD increase in December when they boosted it up to 1.25% APY for a short time... sadly they discontinued that, but this rate increase is a good sign of more to come.
RJM
RJM   |     |   Comment #9
This is good. Not because we will get rich over it. But because it may encourage others to increase their rates. We need competitive bidders for our deposit dollars.
Att
Att   |     |   Comment #12
They are where many other institutions have been for years with this rate. GS bank formally GE Capital bank and Synchrony are just 2 examples.
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