Ally High-Yield Savings Account
Ally High-Yield Savings Account
If you’re interested in getting the highest rate on your savings, there are numerous high yield accounts 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.
Earn over 10 Times the National Rate
Maximum Withdrawals Per Month
No Monthly Maintenance Fees
No Cash Deposits
No Minimum Balance Requirements
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 a Ally High-Yield savings account:
- Earn over 10 Times the National Rate: According to FDIC Monthly National Rates as of November 2022, the Ally High Yield savings account provides over 10 times the national average.
- No Monthly Maintenance Fees: Unlike many checking and savings accounts, Ally does not impose a monthly maintenance fee. So, you don’t need to worry about fees eating away at your savings.
- No Minimum Balance Requirements: There are no balance requirements 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 at any time of the 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. Essentially, you can set up different buckets for different savings goals all 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 where you could 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, it is not possible to deposit cash into your account. If you do have cash that you want to put into your account, you’ll need to deposit it into another account and then transfer the funds over.
- 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 may appear the same, but there are some key differences.
Marcus Has No Checking Account
No Minimum Deposit
No Monthly Service Fees
No Cash Deposits
Ally and Marcus savings rate (3.75% APY) are quite similar, both offer much more than the national average.
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.
Like Ally, Marcus does not impose a monthly maintenance fee on its savings account.
You cannot deposit cash with either the Ally High Yield or the Marcus savings 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.
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.
High Yield Accounts
Both accounts are classified as a high yield savings account (Amex offers 3.75% – 4.50% APY), which carries some limitations such as the maximum number of withdrawals per month.
As with Ally, there is no monthly maintenance fee for the Amex savings.
Both accounts have no minimum balance requirements to open or maintain your account.
Both companies offer round the clock support, with Amex proclaiming they offer “superior” customer support.
If you leave your Amex savings account with a zero balance for 180 days, it will be automatically closed.
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
Remote Check Deposit
Outgoing Wire Transfer
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.
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 rates between online banks.
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.
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.