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Review of Ally Bank’s IRA Bonus for New Deposits


It's common for banks and credit unions to offer IRA promotions early in the year. Most people can make IRA contributions for 2014 through April 15, 2015. Last year Ally Bank began offering this type of IRA promotion, and it’s doing it again this year. In the new promotion, Ally Bank is offering an incentive of up to $500 to consumers who rollover or transfer funds from outside Ally Bank to a new or existing Ally IRA CD or IRA Online Savings account before May 31, 2015.

1.75*%$25k-Ally BankIRA High Yield 5-Year CD (Traditional, Roth, SEP)
1.00*%--Ally BankIRA Online Savings Account (Traditional, Roth, SEP)
Accounts mentioned in this post. Rates as of October 23, 2016.

Bonuses of $100, $250 and $500 can be earned based on the size of the deposit:

  • $100 for deposits of $25,000 to under $50,000
  • $250 for deposits of $50,000 to under $200,000
  • $500 for deposits of $200,000 and over

The deposits can include rollovers, trustee-to-trustee transfers and contributions (up to annual contribution limits). Also, you can make multiple deposits across IRA accounts to meet the minimum deposit requirements.

If you meet the deposit requirements, your bonus will be paid by July 31st, 2015 into your Ally IRA Online Savings Account or IRA CD. Qualifying funds must remain on deposit until the bonus is paid. Bonus is not applied toward contribution limits.

For the full bonus and IRA details, please refer to Ally’s IRA web page.

My Take

This looks like an easy bonus without many requirements. Ally Bank doesn’t have any fees for closing the IRA and transferring out the funds. According to the FAQs for the IRA Online Savings Account, you have to request a distribution to make a withdrawal. This can be done by logging into your Ally account and requesting a distribution. It can also be done by filling out Ally’s paper distribution form.

The IRA CDs have the same early withdrawal penalties as the regular CDs. The only exception unique to the IRA CD is that Ally will waive the EWP when you need to take a Required Minimum Distribution (RMD). Ally will waive the EWP for partial withdrawals up to the RMD amount.

How Ally Bank’s IRA Compares

The first important thing to note about Ally Bank’s IRA is that your only options for what you can invest in are CDs and the savings account. Ally Bank is not a broker so there are no options for stocks, bonds or mutual funds.

A deposit bonus is nice, but it may not offset many years of subpar yields. Ally Bank has rarely been rate leaders, but it has a long history of remaining competitive for both its CDs and savings account. Currently, Ally’s savings account is the most competitive compared to other IRA savings accounts. Ally’s 5-year CD is the least competitive, but it should be noted it has the smallest early withdrawal penalty (150 days of interest).

To search for the best IRA CD and IRA savings account rates in the nation or in your state, please refer to our IRA rates table.

Other banks, credit unions and brokerages have offered IRA bonuses in the past that are similar to this Ally incentive. If you have seen IRA bonuses from other institutions, please leave a comment.

Related Pages: Ally Bank, Salt Lake City, IRA rates

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Anonymous   |     |   Comment #1
I believe Ally's website says the $100 bonus applies to transfers of 25,000 to 49,999---- not 10,000 as stated above.
srockgibson   |     |   Comment #4
I believe there were some comments on earlier 2014 posts detailing this, but it's important to note the new rules for IRA rollovers went into effect on Jan. 1.  Direct trustee-to-trustee transfers are not effected, so if you take advantage of this bonus, you may want to use the trustee-to-trustee route:
Anonymous   |     |   Comment #6
Whats the fee for closing the account or transferring out?
Anonymous   |     |   Comment #7
Leave $1 in the account