Ally Bank Online Savings Account Review: High Interest and Convenience

See the best features and benefits of an Ally savings account.

Ally Bank is an online-only financial institution with a broad range of services, including live customer service, which is available 24/7 over the phone, and support via email or online chat. The bank offers traditional checking and savings account options, vehicle financing options, home mortgages, a credit card, and investment options.

Check out this Ally Bank review to learn about 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 at a Glance
APY1.90%
Minimum Balance Required$0
Ally Bank HighlightsNo monthly maintenance fee
No cashier’s check fee
No online statement fee
No ACH transfer fee
No incoming wire fee
Ally Bank LowlightsDeposits possible only via wire transfer, mailing or scanning checks
No physical branches to visit
Overdraft fee of $25
No debit card
No ATM access

In this review:

Learn: Ally Survey Reveals Over 35% of Savers Are Missing Out on Interest

What You Need to Know About Ally Bank Online Savings Account

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 transfers up to one year in advance.

ATM access is not allowed for the Ally savings account. Instead, you can access money via an Allpoint ATM with an Ally Money Market or Interest Checking Account.

Best for: People who want to earn a high interest rate on their savings account or who do not need to make frequent cash withdrawals.

Best Features of Ally Online Savings Account

When researching good savings accounts, many investors look first at the interest they’ll earn. The Ally Bank Online Savings Account interest rate of 1.90% APY is high relative to the nationwide average, which stands at just 0.08% APY as of Oct. 1, 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
  • Overall high customer service ratings

Related: How to Find and Use Your Ally Bank Login

Ally Bank Online Savings Account Drawbacks

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 of its online 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 brick-and-mortar presence, and debit cards are typically connected to checking accounts, not savings accounts. The limit of six transactions per cycle is a federal imposition, not an Ally Bank limitation.

Ally Bank Online Savings Account Offers Convenient Access to High-Interest Savings

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 an online savings account.

Up Next: Ally Checking Account Review¬†— Earn Interest and Grow Your Funds

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