Ally Savings Account Interest Rates: March 2024

Fact checked by Michael RosenstonReviewed by Samantha Silberstein

Ally Savings Account Interest Rates

A savings account can be a great way to set aside money for a rainy day or to save for your financial goals. And when you choose a high-yield savings account like the Ally Bank Savings Account, you’ll be able to earn interest on your savings while knowing your money is safe. Ally Bank has one of the most popular savings accounts on the market, thanks to its high interest rates, its buckets feature, and more.

See the best savings account rates today:

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Ally Savings Accounts: Key Features

The Ally Bank Savings Account has several features that make it popular with consumers. First, while Ally doesn’t have the highest APY on the market, it’s certainly a competitive rate. There is no minimum deposit, no monthly minimum balance, and no monthly fees.

Like other savings accounts, there are some limitations with Ally’s. For example, Ally only permits up to six monthly withdrawals from certain types of accounts, including savings accounts.

Warning

Be careful not to exceed the six maximum withdrawals per month accidentally. You’ll be stuck with a $10 fee for each transaction above the allowed number.

One interesting feature of the Ally Bank Savings Account is its “buckets” feature. With it you can create several digital envelopes, known as buckets, to organize your money and track progress toward savings goals.

Another Ally Bank savings account feature—“boosters”—lets you automate your savings in a few ways:

• Recurring transfers: Schedule recurring transfers from another account.
• Round-ups: Set up round-ups from your Ally Bank Interest Checking account. You can round your transactions to the nearest dollar and when you hit $5 in accrued round-ups, the money will be transferred to your savings. 
• Surprise savings: Ally Bank can move surprise savings from your checking with extra money it finds by analyzing your account.

About Ally Bank: Other Savings Options

Ally Bank is an online bank that’s available to all U.S. citizens and permanent residents in the country, regardless of what state you’re in. Its parent company, Ally Financial, offers a variety of financial products, including deposit accounts, credit cards, brokerage and retirement accounts, mortgages, auto loans, and personal loans.

As far as savings products, Ally Bank has several options to choose from:

• Spending Account: Earn some interest on your checking account balance with Ally’s no-fee account. You’ll also get early direct deposit, ATM reimbursements, and more.
• Money Market: Earn a decent rate on your savings with no fees, ATM withdrawals, and other features.
• High-Yield CD: Earn a competitive rate on a CD term from three months to five years, with no minimum balance or deposit. 
• Raise Your Rate CD: Earn a relatively good rate on a two-year or four-year CD with no minimum balance or deposit.
• No Penalty CD: Check out 11-month CDs with no minimum balance or deposit and no penalty for withdrawals after the first six months.

Compare Savings Account Rates

Ally Bank offers attractive rates on its high-yield savings account and some of its CDs. Compare Ally’s rates with some other savings accounts and find the one that’s best for you.

Is Ally Bank FDIC Insured?

Ally Bank is insured by the Federal Deposit Insurance Corporation—the FDIC—which means that money in deposit accounts is backed by the agency. FDIC insurance covers up to $250,000 per account holder per ownership category at each bank. Ownership categories include single account, joint account, trust accounts, and similar.

Because the limit is based on ownership category, you could have accounts with $250,000 in multiple categories and have them all covered. However, if you have $250,000 in a single savings account and $250,000 in a checking account at the same bank, only half of your deposits would be covered.

Is Ally Bank a Good Bank for Savings?

Ally Bank can be an excellent bank for savings. It has a competitive APY. It also has the popular buckets feature, which allows you to visually divide your money within the account. Finally, if you also have a checking account with Ally, there are several creative ways to boost your savings.

However, Ally doesn’t have the highest APY of any high-yield savings account. So if your goal is to earn the highest interest possible, Ally may not be the right choice.

How Much Interest Does Ally Pay on Savings?

Ally Bank typically pays a competitive rate on its high-yield savings accounts, although it’s not usually the best available—check the best high-yield savings account rates here. You could also earn an even greater return on a Ally Bank money market account or Ally Bank CD.

Does Ally Bank Have Hidden Fees?

Ally Bank doesn’t charge many of the banking fees that other competitors do, including monthly maintenance fees, overdraft fees, ACH transfer fees, incoming wire fees, or cashier’s check fees. It does charge some fees but is very transparent about them. Here are the fees Ally Bank charges on its savings accounts:

• Excessive transaction fee: $10 per transaction
• Expedited delivery fee: $15
• Outgoing domestic wire fee: $20
• Account research fee: $25 per hour

Read the original article on Investopedia.