Review of Ally Bank’s Savings Accounts and CD Rates

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Ally Bank is an award-winning online-only bank. Minimal fees and no minimum balance requirements across its deposit accounts make it an ideal option for a streamlined and flexible banking experience. 

Ally Bank’s checking, savings, CD and money market account rates are competitive with both conventional brick-and-mortar banks and other online banks. Though you won’t be able to access any assistance in a physical branch, the accounts and all of their perks are supported by 24/7 customer care.

In this article we will cover:

Ally Bank account features 

Ally Bank makes it easy to access and grow your money across its range of account types, which include checking, savings, IRA savings, money market and CD accounts. The bank has seemingly given a lot of consideration to convenience when it comes to its digital banking tools, from displaying support wait times online to providing segmented savings accounts to help you better organize your funds. Ally Bank keeps its fees transparent and doesn’t charge for monthly maintenance on any of its accounts.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.15*%--Ally Bank5 Year High Yield CD
1.10*%--Ally BankIRA Online Savings Account (Traditional, Roth, SEP)
1.10*%--Ally BankOnline Savings Account
1.05*%--Ally Bank3 Year High Yield CD
1.00*%--Ally Bank12 Month High Yield CD
0.95*%--Ally BankNo Penalty 11 Month CD
0.50*%--Ally BankMoney Market Account
0.50*%$15k-Ally BankInterest Checking Account
OTHER TIERS: 0.10% Up to $15k
Rates as of July 3, 2020.

Opening an account with Ally Bank is simple, with no minimum balance requirements for its checking, savings, IRA savings, money market and CD accounts. You’ll have 30 days to fund your account, and even longer for some CD and IRA online savings accounts. The sooner you fund your account the better though — Ally Bank’s accounts feature daily compounded interest so your money grows faster.

Ally Bank Interest Checking account

Ally Bank’s Interest Checking account includes free online bill pay, mobile check deposit, ATM fee reimbursement (up to $10 per statement cycle), free incoming domestic and international wires and no monthly maintenance fees. It requires no minimum deposit to open an account, and you can fund your account via wire transfer; transfers from other Ally Bank accounts or accounts from other institutions; or by check, either by mail or mobile deposit. 

  • Deposit limits: Deposits into Ally Bank’s Interest Checking accounts are unlimited. Ally eCheck Deposit?, Ally Bank’s secure mobile deposit feature, allows for deposits up to $50,000 per day and up to $250,000 every 30 days. 
  • Minimum balance: You can open an account with no minimum opening deposit, and there is no minimum balance requirement. However, your account will be closed if it isn’t funded within 30 days. Additionally, a higher APY is offered for daily balances of more than $15,000.
  • Withdrawal limit: The daily ATM withdrawal limit for Interest Checking accounts is $1,000. Unlike with Ally Bank’s savings and money market accounts, you can make unlimited transactions. 
  • Overdraft fees: Overdraft protection comes free if you link your Ally Bank savings account to your checking account. Otherwise, Ally Bank charges a single $25 fee per day, even if you have multiple overdrafts. 

Ally Bank Online Savings account

Ally Bank’s Online Savings account offers competitive variable rates with daily compounded interest and no minimum balance requirements. This account type includes features for convenience, such as “buckets” that allow you to segment your savings account in up to 10 dedicated parts. Organizing your savings into these buckets allows you to save for specific projects and purposes, like vacations or renovations, while still earning interest on your total balance.

Moving money into your savings account is made easy with the ability to set recurring transfers. Overdrafts and international transactions will incur additional fees, but there is no fee for monthly maintenance.  

  • Deposit limits: You can use Ally’s mobile app to deposit checks totaling up to $50,000 per day or $250,000 every 30 calendar days. You can also send checks by mail. 
  • Minimum balance: There is no minimum opening balance required for an Ally Bank savings account. Accounts not funded within 30 days will be closed. 
  • Withdrawal limit: Transactions for this account type are limited to six per statement cycle by federal law. You’ll be charged $10 for each excessive transaction. 
  • Overdraft fees: If you don’t have enough money in your checking account to complete a transaction, you’ll be charged an overdraft fee of $25. As with other Ally Bank accounts, you won’t be charged more than one fee per day. 

Ally Bank IRA Savings account

Other Ally Bank savings options come in the form of the IRA Online Savings account. You can choose from a Traditional, Roth or SEP plan. The rates are variable but competitive, as Ally Bank boasts up to 10 times the national average interest rate. 

Ally Bank IRA online savings accounts must be funded within 90 days, and deposits can only be sent by traditional mail, wire transfer or through transfers from another Ally Bank account. 

Just like other savings and money market accounts, you can only make six transfers or withdrawals each month. Additional transactions incur a $10 fee, and too many excessive transactions may put your IRA online savings account at risk for closure. Because this account functions as part of an IRA with Ally Bank, withdrawals can only be made by requesting a distribution. 

Your IRA Online Savings account will automatically renew at the end of your term if you don’t withdraw your funds within the 10-day grace period. 

  • Deposit limits: IRA accounts are subject to different rules than other types of accounts. The IRS allows for a $6,000 deposit limit per year for 2020, with a catch-up contribution for those over 50, which is an additional $1,000.
  • Minimum balance: There is no minimum opening balance required for an Ally Bank savings account. Accounts not funded within 90 days will be closed. 
  • Withdrawal limit: Transactions for this account type are limited to six per statement cycle by federal law. You’ll be charged $10 for each excessive transaction. 
  • Overdraft fees: If you don’t have enough money in your checking account to complete a transaction, you’ll be charged an overdraft fee of $25. As with other Ally Bank accounts, you won’t be charged more than one fee per day.
  • How to make a withdrawal: Since this is an IRA product, you need to request a distribution from Ally Bank to make a withdrawal. You can do this online, by calling at 877-247-2559 or by mailing in a distribution form that you can find on Ally Bank’s website. 

Ally Bank money market account 

The Ally Bank money market account offers competitive rates and useful features with the benefit of daily compound interest. It includes a free debit card and standard checks as well as ATM fee reimbursement, limited overdraft fees and no charge for monthly maintenance. 

  • Deposit limits: Like Ally Bank’s Online Savings and Interest Checking accounts, you can make unlimited deposits into your money market account. Ally eCheck Deposit? limits daily deposits to $50,000 total and up to $250,000 every 30 calendar days. There is no limit for checks deposited by mail.
  • Minimum balance: There is no minimum opening balance, but your account will be closed if you don’t fund it within 30 days.
  • Withdrawal limit: ATM withdrawals are unlimited and always free from Allpoint ATMs. You will be reimbursed up to $10 per statement cycle for other ATM fees. Like the bank’s Online Savings and CD accounts, federal law limits other transactions to six per statement cycle.
  • Overdraft fees: If you overdraft your account, you’ll be charged a $25 fee. Ally Bank won’t charge you more than one overdraft fee per day.

Ally Bank CD accounts

Ally Bank’s CD accounts provide a variety of rates and flexibility. All of Ally Bank’s CD accounts feature a 10-day maturity grace period and a 10-day best rate guarantee, which promises the best rate offered for your term and balance tier if Ally Bank’s rate increases within 10 days of opening your account. You have the 10-day grace period to make changes to your CD once it matures, such as rolling it over into a new CD or making a full withdrawal. 

With the Raise Your Rate CD account, you’ll be able to increase your rate once over your two-year term or twice over a four-year term if rates for your term and balance tier go up. Ally Bank also offers the High Yield CD, with terms ranging from three months to five years, that has a competitive, fixed rate. The bank’s No Penalty CD allows you withdraw all of your money within six days after funding the account and keep any interest earned without penalty; your APY depends on how large your opening deposit is.

  • Deposit limits: Like other Ally Bank accounts, there is no deposit limit. 
  • Minimum balance: You have 60 days to fund your account. You can do so by wire transfer, transfers from an Ally Bank account or an account at another institution or a check sent by mail or deposited by mobile. Once you fund your CD account, you won’t be able to add funds again until your CD reaches maturity. There is no minimum deposit requirement for any of Ally Bank’s CD accounts. The No Penalty CD account rates vary depending on your balance tier, so opening an account with a higher minimum deposit may earn you a better rate. 
  • Withdrawal limit: You’ll be able to withdraw funds from any CD account type, including interest, during a 10-day grace period at your CD’s maturity. If you don’t withdraw your money before the end of the grace period, your account automatically renews. 

Opening an Ally Bank account 

You can open an account easily with Ally Bank since you won’t have to go to a branch. There are two ways you can apply: over the phone or online. Both options take about the same amount of time to process your account. This can be anywhere from three to five business days, depending on if Ally Bank needs additional verification. 

You will need the same information whether you apply online or over the phone, including:

  • Your name
  • Address
  • Phone number
  • Date of birth 
  • Social Security number

Ideally that is all you need, but if Ally Bank needs further verification, you will have to supply either your U.S. driver's license, a valid passport, your Social Security card or permanent resident card.

At the time of writing, you can only open an Ally Bank account if you are a U.S. citizen or permanent resident.  

Overall review of Ally Bank’s banking products 

Ally Bank offers some great products. Its combination of no minimum balance requirements and 24/7 customer service makes it a solid contender for anyone interested in an online-only bank. 

Online-only banks tend to offer basic accounts and few selections, such as only offering a checking or savings account. Ally Bank, however, offers a money market account, IRA CDs, an interest-bearing checking account and many other account types that you would traditionally only see at brick-and-mortar banks, such as Chase or Wells Fargo

Overall, we would be more than comfortable recommending Ally Bank as an alternative banking solution. They seem to listen to what their customers want from an online bank and deliver on that. The fees they do have are fairly low, and their customer service (when we called) was attentive and professional. Ally Bank would be a good choice for anyone who needs a one-stop shop type of bank and isn’t concerned about visiting physical branches. 


Comments
Freddy
  |     |   Comment #1
The limit of 6 savings account transactions has been temporarily lifted.

https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200424a.htm
Burrows
  |     |   Comment #2
I put 100 into ally invest managed portfolio, anyone have any experience with that?
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