Ally Online Savings Account Review
One of Ally Bank’s strongest products is their Online Savings Account. The Online Savings Account offers a higher rate of interest than savings accounts at traditional brick-and-mortar banks.
High Interest Rate
The most attractive feature of Ally’s Online Savings Account is their comparatively high interest rates than other savings accounts. The current rate is 0.87% APY, when many other banks offer 0.01% of interest or less. Interest is compounded daily and your savings account keeps a running total of interest earned throughout the year, so you can quickly see how your money grows.
Limited Fees
Another great feature of the Online Savings Account is their transparent fee schedule. Not only is there no minimum balance, but there are no monthly maintenance fees. There are also no fees for transferring money out to a non-Ally account or receiving domestic and international wires.
However, Ally does charge regulatory fees and fees for less frequently used features. Like all U.S. savings accounts, the Online Savings Account is limited to a maximum of six telephone and electronic transfers and withdrawals per billing cycle. Transactions over this limit in the same billing cycle will be charged $10.00 per transaction.
Other fee services include outgoing wires ($20.00), returned deposit items ($7.50), and overdraft item paid or overdraft item returned ($9.00). Please note that all these fees are current as of publication and are subject to change at any time. Please see Ally’s Straight Talk Product Guide (http://www.ally.com/resources/pdf/bank/ally-bank-straight-talk-osa-guide.pdf) for the most current rates and fees.
Excellent Customer Service
Despite the lack of physical bank branches, Ally offers multiple options to contact their customer service. They have 24/7 live customer care that can be reached via online chat or by phone at 1-877-247-ALLY (2559). Their website offers a handy estimate of call wait time, which is rarely 3 minutes or higher.
Ally also offers customer support via email and mail, although these options are slower than chat and phone support.
Easy Account Access
Ally offers an easy-to-use and attractive website, as well as apps for iPad, iPhone, Android, and Windows phone. For non-supported mobile devices, Ally also offers an attractive mobile version of their website.
On the mobile apps, you can view your balances and transaction history, make deposits using their easy Ally eCheck Deposit system, transfer money between Ally and non-Ally accounts, pay bills, and find nearby ATMs and cash back locations. The mobile website is slightly less feature-rich as they do not offer eCheck Deposit, but their full website does offer that option.
Ally’s eCheck Deposit system is extremely easy to use and convenient. It allows remote deposit of checks (which can also be mailed to Ally with free, postage-paid envelopes included with your account) using either a smartphone camera or scan of the checks you wish to deposit. Deposits $200 and under made before 4 pm EST will be posted the next business day; amounts up to $4,800 will be available on the second business day; and amounts over $5,000 will be available on the fifth business day. Note that Ally does not accept cash deposits, but only checks and money orders.
Alternative Online Banks
There are many other banks that offer high-yield online savings accounts today. Three of these are Capital One 360 Savings (https://home.capitalone360.com/online-savings-account), Discover Online Savings Account (https://www.discover.com/online-banking/savings-account/?ICMPGN=BK_HDR_ALLPS_BANK_SAVING), and the American Express Personal Savings (https://personalsavings.americanexpress.com/index.html).
Capital One 360 Savings offers a similar no fee, no minimum balance high-yield savings account to Ally’s Online Savings. However, the APY is currently 0.75% -- not currently a significant difference from Ally’s APY of 0.87%, but may be significant after interest rates increase. There are three different deposit methods available for the Capital One 360 Savings: their CheckMate deposit service using a mobile device or computer, direct deposit, or mailing in paper checks.
Discover’s Online Savings Account requires a minimum opening deposit of $500, but does not have a minimum balance requirement. Their current APY is 0.95%. There are several deposit methods available to account holders: Discover’s Mobile Check Deposit service, bank account transfers, direct deposit, wire deposits, and mailing checks. Withdrawals can be made with online transfers to bank accounts, wire transfers, and requesting an official bank check.
The American Express Personal Savings account is yet another no fee, no minimum balance high-yield online savings account. Your money can only be accessed via Electronic Fund Transfers and physical checks, both of which take several days to process. As the money is not immediately accessible, the Personal Savings account should be used for longer-term savings goals.
|
Ally Online Savings |
Capital One 360 Savings |
Discover Online Savings |
American Express Personal Savings |
| Minimum Opening Deposit |
$0 |
$0 |
$500 |
$0 |
| Minimum Balance Requirement |
$0 |
$0 |
$0 |
$0 |
| Monthly Maintenance Fee |
$0 |
$0 |
$0 |
$0 |
| Current APY |
0.87% |
0.75% |
0.95% |
0.80% |
Ally’s Online Savings Account offers the highest yield with the least requirements, and is extremely accessible when you need it. Note that all of the aforementioned savings accounts are only allowed six free withdrawals per statement cycle, per federal regulations; each withdrawal after the limit will incur a penalty.
Ally Savings Review Conclusion
Ally’s Online Savings Account is easily one of the best high-yield online savings accounts currently on the market. Their accounts are easy to open and access online, and offer attractive interest rates compared to other savings accounts. Although the current interest rate is only 0.87%, most savings accounts today offer rates around 0.01%.
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