Ally High-Yield Savings Account
APY Savings
Minimum Deposit
Our Rating
Fees
Ally High-Yield Savings Account
APY Savings
Minimum Deposit
Our Rating
Fees
If you’re interested in getting the highest rate on your savings, there are numerous hsya available. One account that is getting a lot of attention is the Ally High Yield Savings Account.
The Ally high-yield savings account is a solid account choice with very few potential drawbacks. Ally compounds interest daily, so you can maximize your savings.
Apart from being limited to six withdrawals per month, the account offers great flexibility and you can even arrange your account into “buckets” so you can use the one account to save for a variety of financial goals.
Pros | Cons |
|---|---|
Earn over 10 Times the National Rate | Maximum Withdrawals Per Month |
No Monthly Maintenance Fees | No Cash Deposits |
No Minimum Balance Requirements | No Branches |
24/7 Support | |
Savings Organization Tools | |
Safe to Save |
What Does The Ally High-Yield Savings Account Offer?
Here are the main features you can expect when opening an Ally High-Yield savings account:
- No Monthly Maintenance Fees: Ally does not impose a monthly maintenance fee, unlike many checking and savings accounts. So, you don’t need to worry about costs eating away at your savings.
- No Minimum Balance Requirements: No balance requirements exist to open or maintain your account. You can earn interest on your account balance regardless of whether it is $1 or $10,000.
- 24/7 Support: You can chat, email, or call the Ally customer support team anytime, day or night. You’ll also be able to speak to a real person, not a bot if you have an issue.
- Savings Organization Tools: The top savings accounts offer this feature, and Ally is not behind. Ally has “buckets” which you can use to organize your savings. You can set up different buckets for different savings goals within the same account. This eliminates the need to open and manage multiple accounts.
- Safe to Save: This feature analyzes your linked checking account for any funds that are safe to save. This is a great way to identify areas to boost your savings balance.
- Round Ups: Ally tracks your Interest Checking account for any transactions that can be rounded up to the nearest dollar. For example, if you have a debit card transaction for $8.45, it would be rounded up to $9, or if you had a bill for $89.33, it would be rounded up to $90. When you accrue a minimum of $5 in your round-ups, the funds will be transferred to your High Yield Savings Account.
What Are The Limitations?
No account is perfect and the Ally High Yield Savings account does have some limitations. These include:
- Maximum Withdrawals Per Month: As this account is classified as a high yield savings account, you are limited to a maximum of six withdrawals in any month. So, if you need more frequent access to your savings, this is not the right account for you.
- No Cash Deposits: Since Ally is an online bank, depositing cash into your account is impossible. If you have cash that you want to put into your account, you’ll need to deposit it into another account and then transfer the funds.
- No Branches: This follows on from the previous point, but as an online bank, Ally has no branches. While you can access customer support 24/7, if you prefer face to face customer service, Ally is not a good fit for you.
Ally High Yield Savings vs. Marcus Savings
Ally and Marcus savings accounts are some of the most popular online banks. While may appear the same, there are some key differences.
The Similarities | The Differences |
|---|---|
Interest Rates | Marcus Has No Checking Account |
No Minimum Deposit | Withdrawal Limits |
No Monthly Service Fees | |
No Cash Deposits |
- Interest Rates
Ally and Marcus savings rate (4.40% APY) are quite similar, both offer much more than the national average.
- No Minimum Deposit
Neither account has a deposit requirement to open or maintain the account. This means that you don’t need a large fund to access the higher than average rates.
- No Monthly Service Fees
Like Ally, Marcus does not impose a monthly maintenance fee on its savings account.
- No Cash Deposits
You cannot deposit cash with either the Ally High Yield or the Marcus savings account.
- Marcus Has No Checking Account
Since Marcus does not have a checking account, it does not offer the same savings tools.
However, Marcus does have “Insights” which allows you to track your spending and cash flow via the Marcus app to identify savings opportunities.
- Withdrawal Limits
Unlike the Ally High Yield Savings, the Marcus savings account does not have any withdrawal limits.
Ally High Yield Savings vs Amex Savings
On the surface, these two accounts also appear similar, but there are some differences to note.
The Similarities | The Differences |
|---|---|
High Yield Accounts | Auto Closure |
Monthly Fees | ATM Cards |
24/7 Support
|
- High Yield Accounts
Both accounts are classified as a high yield savings account (Amex offers 4.30% APY), which carries some limitations such as the maximum number of withdrawals per month.
- Monthly Fees
Unlike many traditional banks, both Ally and Amex offer no-fee savings accounts.
- No Minimum Deposits
Both accounts have no minimum balance requirements to open or maintain your account.
- 24/7 Support
Both companies offer round the clock support, with Amex proclaiming they offer “superior” customer support.
- Auto Closure
If you leave your Amex savings account with a zero balance for 180 days, it will be automatically closed.
- ATM Cards
Unlike Ally, the Amex savings account is not supplied with an ATM card, making it tricky to withdraw cash from your savings.
How to Deposit and Withdraw Money From Ally High Yield Savings
Deposit | Withdrawl |
|---|---|
Remote Check Deposit | Outgoing Wire Transfer |
Online Transfers | ATM |
Direct Deposit |
Funds Transfer |
Wire Transfers | Telephone Transfer |
Mail | Check Request |
- Deposits
Although you cannot deposit cash or visit a branch, Ally has several ways for you to deposit funds into your account. This includes:
- Remote Check Deposit: Ally has eCheck Deposit, which allows you to remote deposit checks into your savings account.
- Online Transfers: You can transfer funds from other bank accounts into your Ally account.
- Direct Deposit: Ally allows account holders to direct deposit funds into their high-yield savings account
- Wire Transfers: You can wire transfer funds into your account, but you are likely to incur fees from the sending bank.
- Mail: This is the slowest deposit method, but you can mail in deposits and they will be processed and applied to your account. Additionally, you cannot use this method to deposit cash.
- Withdrawals
Ally also has several withdrawal methods including:
- Outgoing Wire Transfer: This option is available, but the current fee is $20 per wire transfer. However, the funds will be in the receiving account almost immediately.
- ATM: The account is provided with an ATM card, so you can withdraw cash.
- Funds Transfer: You can use the Ally dashboard or app to organize a funds transfer into another Ally or third party bank account.
- Telephone Transfer: You can call the Ally team and request a transfer. The Ally customer support team will need the details of your account and the recipient information, but they can guide you through the process.
- Check Request: You can also request a check to be sent to you in the mail.
Should I Open an Ally High Yield Savings Account?
The Ally High Yield Savings Account is a solid choice for those looking to get the most attractive savings rates.
However, it is not perfect. To determine if it is a good fit for you, there are a few questions that you’ll need to ask yourself.
- Do You Use Cash? If you tend to frequently have cash that you’ll need to deposit into your savings account, you may find that the lack of a direct option with Ally to be frustrating. You’ll need to deposit the cash into another account and then initiate a transfer to your Ally savings account.
- Will You Need Frequent Withdrawals? If you’re planning on leaving the funds in your Ally savings account relatively undisturbed, this is not an issue, but if you will need to make six or more withdrawals per month, this is not the right account for you.
- Do You Need Branch Access? Ally does offer 24/7 support, but this financial institution does not have a branch network. This means that if you like the reassurance of being able to call into a branch if you have a query or want to perform a transaction, Ally is not going to work for you.
- Are You Comfortable with Online/App Account Management? This point follows on from the previous one, but you’ll need to be comfortable with managing your account online or via the app. However, you can access phone support if needed.
How to Open an Ally High Yield Savings Account?
You can open an Ally savings account over the phone or by downloading an application and mailing it in. However, the simplest way is online. You can complete the online application process in a few simple steps.
- Visit the Product Page: You can start the account opening process by visiting the Ally official website and clicking on the high yield savings account product page. You can read through all the account details to confirm you’re happy to go ahead and then click the “Apply” button.
- Complete the Application Form: You’ll need to provide your basic personal information including your full name, address, email and phone number. Ally will also need your social security number.
- Verify Your ID: As with all financial institutions, Ally needs to comply with federal regulations and verify the identity of all account applicants. This means that you’ll need to submit a copy of documentation to verify your identity. Suitable forms of ID include a valid driver’s license, a valid passport or a state issued photo ID.
- Choose Your Funding Options: You will also have the option to choose your preferred funding options, but this is an optional step.
- Await Email Confirmation: Once you submit your application, you will need to wait for Ally to send you an email confirming your application has been approved and your account is now open.
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FAQs
Does Ally offer an IRA savings account?
Yes, Ally does offer an IRA savings account for those who want to plan for retirement.
Does Ally offer a health savings account?
Yes, Ally has a HSA account.
Can you direct deposit into Ally savings account?
Yes, you can direct deposit funds into your Ally savings account.
How do you close an Ally High-Yield Savings?
If you want to close your Ally savings account, you’ll need to call the customer support line or put your request in writing and mail it to the Ally customer care department.
How much can I withdraw from Ally High-Yield Savings?
There is no official limit to the amount you can withdraw from your account, but you can only make a maximum of six withdrawals per month.
Can I transfer my IRA to Ally High-Yield Savings?
You can transfer your IRA to an Ally account, but you’ll need to consider the tax implications.
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How We Rate And Review Savings Account: Methodology
The Smart Investor team has conducted an in-depth analysis of savings accounts offered by banks and credit unions tailored to the needs of savers. Our review focused on four key categories, with specific considerations for savers, and here's how we rated them:
- Savings Rates and Terms (40%): We thoroughly examined the interest rates provided by financial institutions, along with any unique terms and conditions attached to their savings accounts. Higher scores were awarded to banks and credit unions, offering competitive rates, reasonable minimum deposit requirements, and minimal fees, ensuring savers get the best value for their money.
- Savings Account Features (30%): This category assessed the array of features designed to cater to savers' needs, including fees, minimum deposit requirements, mobile app functionality, ATM access, and withdrawal options. Financial institutions providing a diverse range of features and convenient banking solutions received higher ratings in this category, reflecting their commitment to meeting the specific needs savers.
- Customer Experience (20%): The ease of account opening, the responsiveness of customer service, the usability of mobile apps (thoroughly tested by our team), and the bank's policies for assisting customers were evaluated in this category. Banks and credit unions offering seamless account opening processes, efficient customer service, and user-friendly digital platforms were rated higher, ensuring a positive banking experience for savers.
- Bank Reputation (10%): We considered the reputation of each financial institution, incorporating ratings from trusted sources such as JD Power, TrustPilot, and local Better Business Bureau reviews. Higher scores were awarded to banks and credit unions with positive reputations and satisfied customers, reflecting their reliability and trustworthiness.
By weighing these categories appropriately and focusing on factors relevant to savers, our review provides valuable insights to help residents of the state make informed decisions when selecting a savings account.
