Ally Bank Online Savings Account review
Make your savings work for you with a 0.8% APY, easy access and no hidden fees.
finder.com’s rating: 4.4 / 5.0
With an endless selection of financial institutions and products, choosing the right savings account can take time. Ally is an online-only bank that offers competitive rates and low fees by avoiding the overhead costs of physical branches. The result is an easily accessible online savings account with low fees and a 0.8% APY, regardless of your balance.
Minimum deposit to open
Peter Carleton is a writer that covers banking and investing, breaking down what you need to know about where you put your money. When Peter's not thinking about cutting-edge banking apps and robo-advisors, he runs a creative agency and spends his spare time cooking or reading.
Ally Bank’s Online Savings account is best for those looking for a high-yield account. It offers a generous 0.8% APY with no monthly maintenance or other hidden fees.
It allows you to easily manage your money from your computer, tablet or phone, but it lacks the support of a traditional brick-and-mortar bank. If you’re looking for a hassle-free, convenient way to save and don’t need the amenities of a bank branch, this online savings account could be a good way to save.
What are the benefits of the Ally Bank Online Savings Account?
The Online Savings Account from Ally Bank comes with several competitive perks:
- High 0.8% APY. Ally’s APY is hard to beat, considering some competitors offer a low 0.05% APY.
- No hidden fees. Avoid unpleasant surprises with Ally’s Straight Talk product guide that outlines all its fees.
- Daily compounded interest. Interest on your savings is compounded daily, so you’ll earn on what you save each day.
- Security. Deposits are covered by FDIC deposit insurance along with Ally’s online and mobile security guarantee.
- No minimum deposit or balance requirements. You can open this account with as little as $0 with no minimum balance.
What’s the difference between an interest rate and an APY?
Your interest rate is the simple interest paid on an account or investment over the period of a year. If you invest $2,500 into an account that comes with 1% interest, you’ll earn $25 on that investment at the end of a year.
The annual percentage yield (APY) is a bit trickier: It’s the interest rate compounded daily or monthly over the course of a year.
What should I look out for?Ally Bank Online Savings Account is a convenient, on-the-go banking option. But keep these potential drawbacks in mind.
- No debit card or ATM access. You can’t withdraw cash at ATMs.
- Over transaction limit fee. Ally typically charges a $10 fee each time you make more than six outgoing transactions a month. But contact customer service to see if it’s waived temporarily due to the coronavirus.
- Outgoing wire transfer fee. You’ll pay $20 per outgoing wire transfer with this account.
- 30 days to fund the account. While the account doesn’t have a minimum balance requirement, you’ll need to make a deposit of any amount within 30 days or it will be closed.
- No cash deposits. Ally doesn’t have any branches or ATMs, so you won’t be able to deposit cash.
If you’re looking for an account with branch locations or one that comes with a card, you’ll want to keep looking. As always, compare your options when choosing a savings account.
Compare with other savings accounts
How do I apply?
Applying with Ally is done all online, and in as little as 10 minutes:
- Go to Ally’s website.
- Select Bank, then Online Savings.
- Select Open account.
- Select whether you’re new to Ally, a current customer or have already started an application. Click Next step.
- Indicate the account you’re interested in and your opening deposit. Then click Add this product.
- Proceed through the rest of the steps, entering your personal information, financial details and finally enrolling in online banking.
To open the online savings account, you’ll need to meet Ally’s eligibility requirements:
- Be a citizen or a legal permanent resident of the US.
- Have a Social Security number.
- Have a US mailing address.
- Be 18 or older.
When you apply for an account, you’ll be asked for the following information:
- Social Security number or taxpayer ID.
- Name and contact information.
- Date of birth.
- Driver’s license information.
How do I deposit or withdraw money?
Despite being an online-only bank, Ally offers a number of ways to access your money:
- Remote check deposit.
- Online transfers.
- Direct deposit.
- Wire transfers.
- Check deposits by mail.
- Online transfers to other accounts.
- Outgoing wire transfer.
- Telephone transfer.
- Request a check.
How do I get in touch with customer service?
While you won’t be able to visit a branch, there are a handful of ways you can contact Ally customer service:
- Log in to your account for online chat.
- Call 888-925-2559.
- Log in to your account to send a secure email.
- @Ally on Twitter.
What other savings options does Ally Bank offer?
You’ll find plenty of high-interest online savings products at Ally Bank:
- Money market. Enjoy up to 0.5% APY, no monthly fees and unlimited deposits and ATM withdrawals with this high-interest savings account.
- High-yield CDs. Terms range from three months to five years and offers APYs of 0.2% to 1%.
- No-penalty CDs. With a 0.75% APY, you can get higher returns than most savings accounts without the withdrawal penalties of a standard CD.
- IRAs. Traditional, Roth and SEP IRAs come with APYs up to 1.25% and options for both fixed and flexible rates.
Common questions about the Ally savings account
Savings account ratings
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