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Published: Dec 20, 2023 15 min read

Ally Bank offers multiple financial products, encompassing investment accounts, credit cards, mortgages, auto loans and personal loans. On the banking side, Ally provides a checking account along with additional saving options, including a money market account, three types of certificate of deposit (CD) accounts and a high-yield savings account.

We researched the Ally high-yield savings account to provide a comprehensive review of its advantages and disadvantages, annual percentage yield (APY), fees and overall customer experience. Additionally, we examined Ally Bank’s other savings products.

Keep reading to find out if Ally Bank aligns with your savings objectives.

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Best high-yield savings account with tools to help you save

Among the best high-yield savings accounts, Ally Bank stands out for its free saving tools. You can use “buckets” to allocate funds for specific financial goals, such as an emergency fund or an upcoming vacation.

Ally also offers automated savings “boosters” that include:

  • Recurring transfers: Schedule automatic transfers to your high-yield savings buckets.
  • Round ups: Automatically rounds up your Ally Bank checking account debits to the nearest dollar and deposits the change into your savings in $5 increments
  • Surprise savings: This booster evaluates your spending habits to identify funds that are safe to save. Ally sends these funds to your account in increments of $100 or less, no more than three times per week. This feature works with checking accounts from any financial institution.

You can turn off or edit these automated savings tools at any time.

Ally Bank high-yield savings accounts pros and cons

Pros
  • Competitive annual percentage yield (APY)
  • No monthly maintenance fees
  • No minimum opening deposit requirement
  • No overdraft fees
Cons
  • No cash deposits accepted
  • Limit of 10 withdrawals per statement cycle
  • No ATM access or debit card

Pros explained

Competitive annual percentage yield (APY)

Ally Bank offers a competitive rate on its high-yield savings account, compared to the national average as indicated by the Federal Deposit Insurance Corporation (FDIC). Its other savings products, such as the money market account and certificates of deposits (CDs), also offer strong interest rates.

No monthly maintenance fees

Other banks may charge a monthly maintenance fee for savings and checking accounts, which can sometimes be waived by meeting a minimum balance requirement or other conditions. However, with Ally, there are no requirements of this kind. The Ally high-yield savings account has no monthly maintenance fee.

No minimum opening deposit requirement

You can open any of Ally's various savings accounts without an initial deposit. However, you must deposit funds (of any amount) within 30 days; otherwise, Ally Bank may close your account. You can deposit funds through several methods, such as online transfer from another account, direct deposit, remote check deposit, wire transfer or check by mail.

No overdraft fees

Ally Bank doesn’t impose fees for overdrafts on your high-yield savings account. However, if your account lacks sufficient funds to complete a transaction, Ally Bank may decline the transaction.

Cons explained

No cash deposits accepted

Some online banks with no physical branches provide a way to deposit cash, such as at a local retailer. However, Ally doesn’t support cash deposits at all. Deposits must be made by online transfer from another account, direct deposit, wire transfer ($20 fee), check by mail or remote check deposit.

Limit of 10 withdrawals per statement cycle

The Ally high-yield savings account has a limit of 10 withdrawals per statement cycle. There is no fee for exceeding this limit, but Ally reserves the right to close your account if you violate this rule on a regular basis.

Note that Ally Bank’s money market account allows unlimited withdrawals via debit card at ATMs. The high-yield savings account, however, does not come with a debit card.

No ATM access or debit card

Most high-yield savings accounts don’t typically include an ATM card for withdrawals or a debit card usable for point-of-sale purchases. While many financial institutions now provide this benefit, Ally Bank’s high-yield savings account is not one of them.

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Ally Bank high-yield savings account offerings

Ally Bank offers online savings accounts and money market accounts that allow you to deposit and withdraw funds indefinitely. It also has several certificate of deposit (CD) options.

High-yield online savings account

The Ally high-yield savings account (HYSA) offers a competitive annual percentage yield (APY) and no monthly maintenance fee or overdraft fees. While there is no minimum deposit required to open the account, you must deposit funds within 30 days or risk the closure of your account.

A major highlight of Ally Bank’s HYSA is its multiple savings tools. These features can be edited and turned on or off at any time. Savings tools include:

  • Savings buckets: Set aside funds in savings buckets for designated goals, such as a home renovation or emergency fund.
  • Recurring transfers: Schedule automatic transfers to your high-yield savings buckets.
  • Round ups: This feature rounds up your Ally Bank checking account debits to the nearest dollar and deposits that amount into your savings in $5 increments.
  • Surprise savings: Ally evaluates your checking account spending habits and identifies funds suitable for saving. Money is then transferred to your Ally high-yield savings account in increments of $100 or less, limited to no more than three times per week. The Surprise savings feature is available with a checking account from any financial institution.

There is no debit card for Ally's high-yield savings account, so you cannot withdraw via ATM. Instead, you can withdraw through an online transfer to another bank account, an outgoing wire transfer ($20), by phone or by requesting a check.

Ally limits withdrawals on its HYSA to 10 per statement cycle, but there’s no fee if you exceed this amount. Note, though, that if you exceed 10 withdrawals on a regular basis, Ally Bank may close your account.

Ally Bank certificate of deposit (CD) offerings

Ally Bank offers three types of certificate of deposit (CD) accounts: the high-yield CD, the Raise Your Rate CD and the No Penalty CD. While each has different pros and cons, they all share these features:

  • No minimum deposit required
  • No monthly maintenance fee
  • Can be opened as a trust
  • Guaranteed best available rate if you fund within 10 days of opening
  • Renew your CD at maturity for a bonus APR increase
  • Fund your account via online transfer or Ally mobile app from an Ally Bank account or account from another financial institution

Below you’ll find more information about the three certificate of deposit (CD) options available through Ally Bank.

High-yield Certificate of Deposit (CD)

The Ally Bank high-yield CD provides a range of terms, including three months, six months, nine months, one year, 18 months, three years or five years. Fixed interest rates vary by term length, with the highest annual percentage yield rates offered for nine months and 1-year terms. The penalty for early withdrawal is 60 to 150 days of interest, depending on the CD term length.

Raise Your Rate Certificate of Deposit

The Raise Your Rate Certificate of Deposit (CD) offers flexible terms of two and four years. Should the annual percentage yield rate increase before your CD matures, you have the option to switch to the higher rate. With Ally, you can make one rate change for a two-year term and up to two changes for a four-year term.

However, the starting APR for this CD is slightly lower compared to Ally’s high-yield or no-penalty CD. Additionally, the penalty for early withdrawal is 60 to 150 days of interest, depending on the length of the CD term.

No Penalty Certificate of Deposit

Ally’s no-penalty CD stands out for its 11-month term, offering greater flexibility compared to its other CD choices. From day seven following your initial deposit, you can withdraw all the funds without losing any earned interest. This option earns the highest annual percentage rate among all the CD offerings available at Ally Bank.

Ally Bank’s money market account offerings

Ally’s money market account offers a competitive annual percentage rate that’s slightly higher than the high-yield savings account APY. Additionally, this account comes with checks and a debit card that you can use without fees at any Allpoint ATM. (Ally reimburses up to $10 in out-of-network ATM fees per statement cycle.)

While this account allows unlimited ATM withdrawals, there’s a cap of 10 withdrawals for online or mobile banking transfers, checks and point-of-sale transactions (like debit card purchases). Note that exceeding this limit doesn’t incur a fee, but frequent breaches of this limit could lead Ally Bank to close your account.

Ally’s money market account has no monthly maintenance fees or overdraft fees. There’s also no minimum balance to open an account, though you must fund your account within 30 days of opening to avoid possible closure.

Ally Bank high-yield savings account pricing

The Ally Bank high-yield savings typically comes without any fees. There are no monthly maintenance fees, no overdraft fees and no charges for surpassing the withdrawal limit of 10 transactions per cycle.

However, there are a few costs to keep in mind:

  • Outgoing wire transfers - $20
  • Expedited check delivery - $15
  • Account research - $25 per hour

Additionally, Ally’s high-yield and raise-your-rate CDs have early withdrawal penalties varying based on the term length.

The amount of interest you’ll forfeit is as follows:

  • Two-year term or shorter - 60 days of interest
  • Three-year term - 90 days of interest
  • Four-year term - 120 days of interest
  • Five-year term -150 days of interest
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Ally Bank high-yield savings account financial stability

Ally Bank operates under its parent organization, Ally Financial. Fitch Ratings has given Ally Financial a BBB- long-term issuer default rating and a BBB- viability rating. While these ratings are below the top-tier AAA rating, they reflect Ally’s robust financial standing and indicate a low likelihood of default.

Ally Bank high-yield savings account accessibility

Even without physical branches, Ally Bank is accessible through its website, mobile app and 24/7 customer support. You can open an account nationwide and benefit from a competitive Ally high-yield savings APY.

Availability

All Ally Bank high-yield savings account options are available to U.S. permanent residents and citizens in all 50 states, plus the District of Columbia. The minimum age requirement is 18, and you must have a U.S. street address.

Contact information

You can call 877-247-2559 to reach Ally Bank’s 24/7 customer support line. Alternatively, log in to the Ally Bank customer portal online or via the Ally Bank mobile app to chat with a representative. Ally Bank also offers a secure email option if you don’t need real-time support.

User experience

Opening an Ally bank account throught the Ally Bank mobile app and website is a simple, streamlined process. You can also monitor your balances and handle everyday transactions, such as online transfers to and from other bank accounts. The digital banking interface is seamless and provides a snapshot of your accounts and access to 24/7 support.

Ally Bank high-yield savings account customer satisfaction

Ally Bank is not accredited on the Better Business Bureau (BBB) site, but its listing shows an average customer review rating is 1.14 out of 5. Some customers expressed frustrations interacting with customer service or logging into their online accounts, and customers on other review sites shared similar concerns. Another third-party review site shows a similarly poor overall rating, with reviews echoing many of the same issues.

Some positive reviews show customer satisfaction around high annual percentage yields on savings products, ease of opening an account and customer service representatives who were especially helpful.

Ally Bank high-yield savings account FAQs

Is Ally Bank FDIC-insured?

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As a FDIC member, Ally ensures the safety of deposits by providing Federal Deposit Insurance Corporation coverage of up to $250,000 per depositor. This coverage extends to each account ownership category, including individual and joint accounts. This protection offers peace of mind that your funds are protected in the event of Ally facing financial challenges.

Is Ally Bank safe?

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Ally Bank is a member FDIC bank, which means your funds are insured up to $250,000 per depositor, per bank by the Federal Deposit Insurance Company. Additionally, the bank has several safeguards to protect you as you do your online banking. It also keeps your data confidential.

Are online savings accounts at Ally Bank compounded daily?

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Ally compounds interest daily on all online savings accounts. This allows you to better benefit from the effects of compound interest than with less frequent compounding methods. You can consult a compound interest calculator for examples.

Who owns Ally Bank?

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Ally Bank is a product of Ally Financial, Inc., which is owned by shareholders. Some of these shareholders include Berkshire Hathaway, Inc., The Vanguard Group., Inc., Harris Associates LP and BlackRock Fund Advisors.

How we evaluated Ally Bank’s high-yield savings account

We evaluated Ally Bank’s high-yield savings account options based on these criteria:

  • Product offerings: We looked at the variety of accounts Ally Bank offers, including CDs, money market accounts and high-yield online savings accounts.
  • Interest rates: We compared Ally’s high-yield interest rate offerings to both national average rates and competitors’ rates.
  • Fees and penalties: We researched Ally Bank’s fees, such as fees for monthly maintenance, overdrafts and excessive transactions. We also evaluated the penalties for withdrawing funds early from CDs.
  • Account requirements: We assessed if Ally requires a minimum opening deposit or monthly balance for its accounts. We also considered eligibility for opening an account.
  • Customer reviews: We analyzed the BBB and other customer review websites to identify common positive and negative experiences dealing with Ally.
  • Customer service options: We evaluated Ally Bank's online and phone support options and their availability.
  • Accessibility: We examined the accessibility of Ally’s website and mobile app from a customer’s perspective. We also considered any shortcomings due to a lack of physical branches.

Summary of Money's Ally Bank high-yield savings account review

The Ally high-yield savings account offers an above-average annual percentage yield, plus several free savings tools that may help you set aside more funds. Furthermore, Ally Bank charges no monthly maintenance fees, which means you can save without worrying about fees canceling out your earned interest.

Ally Bank also offers three types of certificate of deposit (CD) accounts, plus a money market account. These accounts are also free of fees, with the exception of early withdrawal penalties on CDs. However, Ally does not accept cash deposits, which may be an issue for some customers.

Before settling on an insurance product, it’s wise to explore various options, especially considering APRs fluctuate regularly. If you’re new to saving, familiarizing yourself with a high-yield savings account could be beneficial.