Ally Bank Ups Savings Account Rate to Highest Level Since 2010

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Deal Summary: Online Savings Account, 1.15% APY, No minimum balance

Availability: Nationwide (internet bank)

This morning, Ally Bank increased the rate of its Online Savings Account by 10 bps. The new rate is now 1.15% APY. This same rate change also took effect on the IRA Online Savings Account. The 1.15% APY applies to all balances. The account has no monthly maintenance fees and no minimum balance requirement.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.15*%--Ally BankIRA Online Savings Account (Traditional, Roth, SEP)
1.15*%--Ally BankOnline Savings Account
Accounts mentioned in this post. Rates as of August 16, 2017.

It’s yet another example that the recent Fed rate hikes are having an effect. The last Ally savings account rate hike was on April 21st when the APY increased from 1% to 1.05%. It’s nice to see the rate increase by 10 bps this time. It’s a sign that as we see additional Fed rate hikes, deposit rate increases should accelerate. Eventually, savings account rate hikes of 25 bps or more may become common as the Fed continues its rate hikes. We saw those savings account rate hikes back in 2005 during the last rising rate environment.

The title of this post may look familiar. When I reported on Ally’s April rate hike, the 1.05% APY was the highest rate on the Ally savings account since 2011. The new 1.15% APY is now the highest since November 2010 when the APY was 1.19%. We probably are going to have to wait a long time before I’m able to say “highest since 2009”. In early January of 2010, the Ally savings account APY was 1.50%.

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. Today’s rate hike continues this trend.

One reason Ally is able to attract and retain deposits without being a rate leader is due to its online banking features that most other internet banks lack. One important online banking 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. I can give an example of the one-day transfer. Yesterday, I initiated a transfer at Ally just before 7:30pm ET, and the funds are now available in my Ally Checking account.

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 features make 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.

Ally Bank Money Market and Interest Checking Accounts

Ally Bank’s money market account rate still 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.

APYMINMAXINSTITUTIONPRODUCTDETAILS
0.85*%--Ally BankMoney Market Account
Accounts mentioned in this post. Rates as of August 16, 2017.

An important similarity between the money market account and the savings account is the 6-per-month withdrawal limitation. If you need to exceed this number of withdrawals, the Ally Interest Checking Account is useful. Like the MMA, there was no change in Ally's Interest Checking rates. It has two balance tiers (0.60% APY for $15k+ and 0.10% for under $15k). These rates have held steady since May 2014.

APYMINMAXINSTITUTIONPRODUCTDETAILS
0.60*%$15k-Ally BankInterest Checking Account
OTHER TIERS: 0.10% Up to $15k
Accounts mentioned in this post. Rates as of August 16, 2017.

Ally Bank CDs

For savings and money market accounts, it has been a long time since Ally has been a rate leader. However, for CDs, Ally currently has a product which ranks as the best short-term CD deal, and due to its unique nature, you don’t see it mentioned in many places. The product is the 11-month No Penalty CD which currently has a top rate of 1.50% APY for balances of $25k+. The rate on the $5k balance tier is also competitive (1.25% APY). The 1.50% is close to the best 1-year CD rates, but the no-penalty feature of this CD makes it a much better deal than a standard 1-year CD. Since it can be closed at anytime after 6 days of opening without a penalty, it can be made to have any term from 7 days to 11 months. I have more discussion in my recent Ally No Penalty CD review. Please note, the 1.50% APY is unlikely to last long. When Ally came out with a top rate on this CD in December, it lasted less than three weeks. The 1.50% APY has been in effect now for 10 days.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.50*%$25k-Ally BankNo Penalty 11-Month CD
OTHER TIERS: 1.00% Up to $5k | 1.25% $5k - $25k
Accounts mentioned in this post. Rates as of August 16, 2017.

The other good Ally CD deal is its 5-year CD (2.25% APY on all balances). It isn’t a rate leader, but it’s close enough to the 5-year rate leaders to be a good deal due to Ally’s mild early withdrawal penalty (5 months of interest). You can see how this CD compares to other 5-year CDs and to short-term CDs in our CD Early Withdrawal Penalty Calculator.

APYMINMAXINSTITUTIONPRODUCTDETAILS
2.25*%--Ally BankHigh Yield 5 Year CD
Accounts mentioned in this post. Rates as of August 16, 2017.

Availability

Headquartered in Midvale, Utah, Ally Bank is currently the 21st largest bank in the country, with assets in excess of $122 billion and over 2.3 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 Ally 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 1.70% (excellent) based on March 31, 2017 data. In the past year, Ally has increased its non-brokered deposits by $11 billion, an excellent annual growth rate of 18.63%. Please refer to our financial overview of Ally Bank for more details.

How the Online Savings Account Compares

When compared to 206 nationally-available savings accounts from banks and credit unions tracked by DepositAccounts.com, only 8 banks offer higher rates for deposits under $10k. Three internet banks (CIT, Synchrony, and Barclays) also offer 1.15% APY on their savings accounts. The table below shows how Ally’s savings account compares with three of the top nationally-available savings accounts:

The above rates are accurate as of 6/30/2017.

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.

Related Pages: Salt Lake City savings accounts, savings accounts, nationwide deals, Internet banks

Comments
Att
Att   |     |   Comment #1
I like Ally's website but it took me over a week to setup an account. They pulled the funds from my checking account but yesterday did not show up yet and the balance is $0. Unable to log on all day to check my accounts because the site can not show accounts (That is the message I get).
583949497
583949497   |     |   Comment #2
try logging out and logging back in, seems like that forces the site to update
NanaToTwo
NanaToTwo   |     |   Comment #13
Wow! I was able to set mine up immediately and have the transfer show up within 24 hours, all done from my phone. I haven't had any other issues.
I hope you don't encounter any more problems!
Att
Att   |     |   Comment #3
The site is up. Was down from about 8am to 1pm EST. The balance is showing up now too
8675309
8675309   |     |   Comment #4
Awesome! Have been waiting for this.
RJM
RJM   |     |   Comment #5
Good. Except I'm loaded up at 1.5% no penalty's CDs.
deplorable 1
deplorable 1   |     |   Comment #6
Note to Ally: You need to raise the interest rate on the Demand note account to 2% to compensate us investors for default risk and not being FDIC insured. Four interest rate hikes yet this account is still lingering at it's all time low. I hope they are not going to ditch the account like GE did to their interest plus account. It's nice to actually be able to pay all my bills with one account that earns interest without running into that lame 6 withdrawal per month limit that all savings account have. Also it is nice not to have to jump through rewards checking account hoops like debit card transactions just to earn a little interest. This is very frustrating as this account used to earn rates similar to 5 year CD's.
Hillary
Hillary   |     |   Comment #7
I'm sure that they're getting right on it for you...
deplorable 1
deplorable 1   |     |   Comment #9
Hillary: I was just pointing out that is is very strange that Ally would be paying the same 1.5% rate on a FDIC insured MMA as on their $50,000 tier non FDIC insured Demand note account. Then they have an even higher yield on their 11 month no penalty CD 1.5%. This just doesn't make any logical sense to me unless they are planning to ax the Demand note program which would be a really bad idea IMO.
anitaphoto
anitaphoto   |     |   Comment #8
Thank you for the very detailed update, much appreciated.
Matt
Matt   |     |   Comment #10
Just made the move to ally no penalty cd and savings account. Best rate I can find.
#11 - This comment has been removed for violating our comment policy.
#12 - This comment has been removed for violating our comment policy.
Ally Bank Again Increases the Rate on Its 11-Month No Penalty CD

Deal Summary: 11-month No Penalty CD: 1.50% APY, $25k minimum (increase of 15 bps).

Availability: Nationwide

For the second time in the last week, Ally Bank raised the rates of its 11-month No Penalty CD. This is an especially pleasant surprise since last week’s rate hike was such a good deal. You’ll need a minimum deposit of at least $5k to benefit from this rate increase. The top-tiered rate increased 15 basis points to 1.50% APY while the mid-tiered rate increased 20 basis points to 1.25% APY....

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Ally Bank’s 11-Month No Penalty CD Rate at Highest Level Since 2010

Deal Summary: 11-month No Penalty CD: 1.35% APY, $25k minimum (increase of 25 bps).

Availability: Nationwide

Ally Bank just raised the rates of its 11-month No Penalty CD. This CD has three rate tiers, and rates for all three tiers increased. The top tiered rate had the most dramatic increase. Below is a summary of the new tiered rates and how these rates have changed:

  • 1.35% APY, $25k min (was 1.10%)
  • 1.05% APY, $5k min (was 1.00%)
  • 1.00% APY, no min (was 0.90%)

The last time Ally Bank’s No...

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Ally Bank Increases Rates of 1-Year CD and 2-Year Raise Your Rate CD

Deal Summary: 1-year CD, 1.35% APY (increase of 5 bps); 2-year Raise Your Rate CD, 1.50% APY (increase of 10 bps).

Availability: Nationwide

Ally Bank increased the rate of its 1-year CD (1.35% APY) by 5 basis points and the rate of its 2-year Raise Your Rate CD (1.50% APY) by 10 basis points. Both of these CDs currently have no rate tiers. There is no minimum deposit to qualify for the top rates.

The above CDs are also available as IRAs (Traditional, Roth or SEP), earning the same...

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Ally Bank Ups Savings Account Rate to Highest Level Since 2011

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.

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,...

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Ally Bank Ups 5-Year CD Rate to Highest Level Since 2011

Deal Summary: 60-month CD, 2.25% APY, No minimum deposit

Availability: Internet Bank

Today, Ally Bank increased the rate of its 5-year High Yield CD by 25 bps. The new rate is now 2.25% APY, with no minimum deposit. This change also applies to Ally’s 5-year IRA CD.

This new 5-year CD rate is the highest at Ally since August 2011. It’s a positive sign that we may actually be at the start of a rising interest rate environment.

Ally’s 5-year CD has gone through a few rate and tier...

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