A high-interest way to save for those who don’t need ATM access.
As the popularity of digital banking continues to rise, more banks have begun to invest in online platforms. Ally Bank Online Savings Account accounts offer a simple way for you to invest your money with often higher APYs than you’ll find at your neighborhood branch.
If you’re in the market for an online savings account, Ally Bank is one of many options.
Make your savings work for you with a 1.85% APY, easy access and no hidden fees.
With an endless selection of financial institutions and products, choosing the right savings account can be tough. Ally is an online-only bank that is able to offer 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 1.85% APY, regardless of your balance.
What are the benefits of the Ally Bank Online Savings Account?
The Online Savings Account from Ally Bank comes with several competitive perks:
- High 1.85% APY. Ally’s APY is hard to beat, considering its competitors’ lowly offers of 0.05% APY.
- No monthly maintenance fees. Minimize unpleasant surprises on your monthly account statement with no associated maintenance fees.
- Daily compounded interest. Interest on your savings is compounded daily, so you’ll earn on all that you save each day.
- Security. Deposits in this account are covered by FDIC deposit insurance along with Ally’s online and mobile security guarantee.
- No hidden fees. All possible charges are outlined in the Straight Talk Product Guide to ensure you don’t run into any hidden fees.
- No minimum deposit or balance requirements. You can open this account with as little as $0 and won’t be forced to maintain any 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 is a bit trickier: It’s the effective annual rate of return that takes into account the effect of compounding interest over a year. In short, 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 won’t be able to withdraw cash at ATMs or elsewhere.
- Limited transactions. You’re limited to six transactions monthly before you’re hit with a $10 fee for all subsequent transactions.
- 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 will 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.
How do I apply?
Applying with Ally is a fully online process and you can open an account 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.
In order 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 United States
- Have a Social Security number
- Have a US mailing address
- Be at least 18 years old
When you apply for an account, you’ll be asked for the following information:
- Social Security number or taxpayer ID
- Street address
- Date of birth
- Driver’s license information
- Email address
- Phone number
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 1-888-925-2559
- Log in to your account to send a secure email
- @Ally on Twitter
What other savings options does Ally Bank offer?
Ally Bank has plenty of high-interest online savings products to offer:
- Money market. Enjoy a 1.00% 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 offer APYs of 0.75% to 3.00%.
- No-penalty CDs. With APYs between 1.75% and 2.10%, you can get higher returns than a savings account without the withdrawal penalties of a standard CD.
- IRAs. Traditional, Roth and SEP IRAs come with APYs up to 3.00% and options for both fixed and flexible rates.
Compare with other savings accounts
Ally Bank’s Online Savings Account offers a generous 1.85% 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. But before opening an account, be sure to compare your options to find the right account for your situation.