Ally Bank is an online-only financial institution with a broad range of services including live customer service, 24/7 over the phone or via online chat. The bank offers traditional checking and savings account options, auto loans, home mortgages, credit cards and investment options. Check out this Ally Bank review to learn all the features and benefits of the bank’s online savings account, and see why it was named GOBankingRates’ best online bank.
Ally Bank Online Savings Account Review
The Ally Bank Online Savings Account carries the same FDIC insurance as traditional banks — up to $250,000 per depositor, per account type. The savings account carries no monthly maintenance fees, nor does it charge fees for cashier’s checks, online statements, ACH transfers or incoming wires. The online savings account doesn’t have a minimum balance requirement, and it includes a 2.20% APY as of today.
Ally Bank Products and Services
As long as you have an internet connection, you can access your Ally accounts from anywhere, via the bank’s online and mobile banking platforms. Once you open an account, move money at any time between your Ally Bank accounts or transfer money to accounts at other institutions by scheduling them up to one year in advance.
Ally Bank offers free ATM access at more than 43,000 Allpoint ATMs along with a $10 reimbursement per statement cycle for ATMs used at other institutions. ATM access is not allowed for the savings account. Instead, you can access money via an Allpoint ATM with an Ally Money Market or Interest Checking Account.
Pros and Cons of the Ally Savings Account
So you can better decide whether Ally Bank’s online savings account is right for you, understand the advantages and drawbacks to this financial tool. Here’s what you need to know to decide if this account is the right move for your money.
Ally Bank Pros
When researching good savings accounts, many investors look first at the interest they’ll earn. The Ally Bank Online Savings Account interest rate of 2.20% APY is high relative to the nationwide average, which stands at just 0.07% APY as of April 17, 2018.
Here are the other main benefits of the Ally Online Savings Account:
- 24/7 live customer service
- No monthly maintenance fees
- FDIC insurance
- Free mobile and online banking
- Ability to transfer money between internal and external accounts
- Access to other account types, including investment services within the Ally Financial family of companies
- Overdraft transfer service when you link an Ally Interest Checking or Money Market account with your Online Savings Account
- Account alerts via email, text, or both when overdrafts or other account transactions occur
- Overall high customer service ratings
Ally Bank Cons
No bank account can meet all needs of all people, and the Ally Bank Online Savings Account is no different. For starters, Ally Bank does not accept cash deposits. Although that might seem logical because Ally Bank has no physical branches, some Ally Bank competitors do have the ability to accept cash.
Here are some other negative aspects of an Ally Bank Online Savings Account:
- Deposits possible only via wire transfer, mailing or scanning checks
- No physical branches to visit
- Limit of six transactions per statement cycle
- Overdraft fee of $25
- No debit card
- No ATM access
Most drawbacks of the Ally Bank Online Savings Account are not institution-specific; rather, they’re limitations of online savings accounts in general. For example, most online banks have no bricks-and-mortar presence and debit cards are typically connected to checking accounts, not savings accounts. The six-transaction-per-cycle limit is a federal imposition, not an Ally Bank limitation.
The Ally Bank Savings Account offers a variety of banking services, 24/7 customer service, and FDIC insurance. Whether this is the best online bank for you depends on what you need out of a bank. Weigh the cons against the pros to determine if Ally Bank should be your choice of online savings account.
This content is not provided by the companies mentioned. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone and have not been reviewed, approved, or otherwise endorsed by Ally Bank.