Ally Online Savings Review: High Interest, No Minimum Balance

Earning high interest on your savings just got easier.
5/23/19 | By Lauren Stewart
money growing savings account

FinanceBuzz is reader-supported. We may receive compensation when you click links to products or services mentioned in this story. The opinions and recommendations are the author's own and have not been reviewed, endorsed, or approved by any of these entities. Learn more about how we make money.

It’s no secret that online banks are disrupting the banking industry by offering higher interest rates on savings accounts. Does this mean traditional savings accounts have gone extinct? Of course not. But if you want your money to work harder for you — and who doesn’t — there’s a better way to earn interest with an online savings account.

An online high-yield savings account works the same way as traditional savings accounts, except that it typically offers a higher interest rate. In some cases, the interest rate is significantly higher than what your current account may be yielding at a brick-and-mortar bank.

In this review, we’ll go over how an Ally Online Savings Account can grow over time, fees you might incur along the way, and how to decide if Ally’s product is a good fit for you.

Best features of the Ally Online Savings Account

The biggest benefit of a high-yield savings account is undeniably the opportunity to earn higher than average interest. Luckily, that’s only the beginning to the amazing benefits you’ll receive with the Ally Online Savings Account.

  • High APY: Ally offers a higher-than-average APY (annual percentage rate), which can help your money work harder for you than at most traditional banks. While both types of savings accounts earn interest, the rate of return is almost always higher with the Online Savings Account.
  • No minimum balance: There’s no minimum balance to maintain in your Online Savings Account, which makes getting started with savings a little bit easier.
  • No monthly maintenance fees: Having no monthly maintenance fees coupled with no minimum balance is a win-win as far as savings accounts go. The money you deposit into your Online Savings Account will truly be saved until you’re ready to withdraw it.
  • Direct deposit option: You can save money each time you get paid by directing as much (or as little) of your paycheck as you’d like with Ally’s direct deposit. Setting up this automated way to save could help you grow your account at a faster pace.
  • Banking on the go: With the Ally Bank mobile app, you’ll be able to manage your Online Savings Account on the go. Using the app, you can transfer money in and out of the account from anywhere in the world on your phone.

These benefits are a sampling of why you might consider opening an Ally Online Savings Account, but there are other reasons why moving your banking services away from traditional brick-and-mortar options might make sense. The biggest reason? You could earn more.

Ally Online Savings Account vs. traditional savings account

Decades ago, you would need to walk into several banks to learn the ins and outs of each before making a final decision. Now you can do so online in just a few minutes.

We did the research for you to see how Ally’s Online Savings Account compares to traditional banks. Here’s a side-by-side comparison of what we found.

Ally Traditional*
APY 2.20% as of May 2019 0.10% as of May 2019
Minimum balance None Varies by bank
Monthly fees None Beginning at $5 month; some banks waive fees if certain conditions are met
Options for funding the account Online transfers, direct deposit, wire transfers, eCheck/mobile deposit, mail a check Same as Ally, plus cash deposits
Options for withdrawing from the account Online transfer, wire transfer, check request, telephone transfer Online transfer, wire transfer, telephone transfer, cash/ATM withdrawal
Withdrawal fees None if there are less than six transactions in the billing cycle.

$10 if there are more than six transactions in the billing cycle.

None if there are less than six transactions in the billing cycle.

As low as $5 if there are more than six transactions in the billing cycle.

Monthly Transaction Limit Six withdrawals, unlimited deposits Six withdrawals, unlimited deposits
Branch locations Mobile only Several nationwide and mobile*
ATM Fees None when using the Allpoint ATM network. Alternatively, get reimbursed up to $10 per month on out-of-network ATMs nationwide. $3 on average; some charges reimbursable depending on bank

*Information based on policies held at traditional banks nationwide. Some information may vary by bank from what is presented in the table.

As you can see, the Ally Online Savings Account has many similarities to a traditional savings account — but with a few additional benefits. For example, how many savings accounts have you seen that require no minimum balance and no monthly maintenance fee? Usually, it’s one or the other, crowning Ally a clear winner in these categories.

Key similarities between the Ally Online Savings Account and traditional savings accounts are the number of transactions you’re allowed to make each billing cycle, the ability to make unlimited deposits, and the limitations around being able to make six withdrawal transactions per month before incurring fees.

One drawback to consider for the Ally Online Savings Account is the inability to deposit cash into your account. With cash deposits becoming less popular, this may not be a big deal to you. But if you do routinely need to make cash deposits, you may want to consider opening an account that allows them.

Lastly, if you prefer talking with someone face to face about your banking needs, an online bank may not be the right choice for you, as banks like Ally have no physical locations to visit. That said, Ally does offer customer service assistance 24/7 with real humans through chat, phone, and email, and they pride themselves on short wait times.

Do I get a debit card with the Ally Online Savings Account?

When you open an Ally Online Savings Account, you won’t receive a debit card. To receive one, you’ll need to also open an interest checking account or a money market account.

Is Ally Bank safe?

Banking with Ally Bank is safe, and your Ally Online Savings Account will be insured by the FDIC (Federal Deposit Insurance Corporation), meaning the same rules apply to your money as if it were at a brick-and-mortar bank.

It’s natural to question the safety of a bank that operates entirely online, but in this case, there’s no reason to be uneasy. Ally Bank has several measures in place to protect its customers, including multi-factor authentication, data encryption, and more. If you fear you’re a victim of fraud, the Ally Fraud Hotline is available to assist you at any time.

Advertising Policy

FinanceBuzz.com is an independent, advertising-supported website. Some of the offers that appear on this page are from third party advertisers from which FinanceBuzz.com receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear).

FinanceBuzz.com does not include all financial or credit offers that might be available to consumers in the marketplace. FinanceBuzz.com does not include all companies or all available products.

FinanceBuzz has partnered with CardRatings for our coverage of credit card products. FinanceBuzz and CardRatings may receive a commission from card issuers.

Editorial Disclaimer

The editorial content on this page is not provided by any of the companies mentioned, and have not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are the author's alone.