Ally Online Savings Review [2024]: High Interest, No Minimum Balance

BANKING - SAVINGS & MONEY MARKET ACCOUNTS
Earning high interest on your savings just got easier.
Updated Feb. 8, 2024
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We recommend the Ally Online Savings Account as one of the best online high-yield savings accounts because it helps you earn an annual percentage yield (APY) of 4.35% (as of Feb. 8, 2024)1. This rate compares to a national average of 0.47% (as of Feb. 8, 2024). 

We also like that the Ally Online Savings Account has no monthly maintenance fees or minimum required balance. This makes it a straightforward account for saving and growing your money. However, Ally doesn't accept physical cash deposits and doesn't have physical locations.

In this review, we’ll explore how the Ally Online Savings Account works, what fees you might incur, and how to decide if this savings account is a good fit for you.

Featured High Yield Savings Accounts

Customers Bank - 5.32% APY2

High-yield savings account. $1 minimum deposit. FDIC insured.

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SoFi Checking & Savings - Earn Up to $300 When You Set Up Direct Deposit

Earn 4.60% APY3 and collect up to a $300 cash bonus with direct deposit or $5,000 or more in qualifying deposits.4 FDIC Insured.

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Barclays Online Savings - 4.35% APY5

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In this article

Key takeaways

  • We recommend the Ally Online Savings Account for its high APY rate, $0 monthly maintenance fee, and $0 minimum balance.
  • We like that Ally offers a useful mobile app that offers mobile check deposits, bill pay, fund transfers, and informative analytics. The app is highly rated on Apple's App Store.
  • Ally offers 24/7 customer service by calling 1-877-247-2559, which makes it easy to get the support you need at any time of day.
  • The two main downsides to Ally are that you can't deposit cash, and there are no physical branches.

Ally Online Savings Account Overview

Pros
  • Offers high APY
  • Doesn’t charge monthly maintenance fees
  • Offers 24/7 customer support
Cons
  • Doesn’t accept physical cash deposits
  • Doesn’t have physical branches

Ally, founded in 1919 under the name General Motors Acceptance Corporation (GMAC), is an online-only bank that offers checking accounts, high-yield savings accounts (HYSAs), and other financial services.

The Ally Online Savings Account stands out for its APY of 4.35% (as of Feb. 8, 2024), $0 monthly maintenance fees, and solid customer service. These features are why we recommend the Ally Online Savings Account for people who want to maximize their savings.

However, Ally doesn’t accept cash deposits and doesn’t have physical locations. This means all banking activities, including deposits and withdrawals, must be done online or via its mobile app.

Ally Financial Inc. and its subsidiary Ally Bank are legitimate and reputable companies. The two companies have ratings of A+ and A from the Better Business Bureau (BBB), respectively. Ally Financial Inc. (NYSE: ALLY) publicly trades on the New York Stock Exchange.

Ally Online Savings Account details

APY 4.35% (as of Feb. 8, 2024)
Minimum balance for APY N/A
Minimum deposit to open an account $0
Monthly maintenance fees $0
ATM access No. However, Ally Bank has free ATM access at over 43,000 Allpoint ATMs with its Interest Checking Account.  
Transaction limits Maximum of 6 withdrawals per statement cycle via online funds transfer, outgoing wire transfer, telephone transfer, or check request.
FDIC-insured Yes, up to $250,000 per depositor.

What we like about 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 of the amazing benefits you’ll receive with the Ally Online Savings Account.

  • High APY: Ally offers an annual percentage yield (APY) of 4.35% (as of Feb. 8, 2024). This is well above the national average, which can help your money work harder for you than at most traditional banks. This means you can get a solid return with the Ally Online Savings Account.
  • No minimum balance: There's no minimum account balance for your Online Savings Account, which makes getting started with savings a little bit easier for new savers.
  • No minimum deposit requirement: There's also no minimum deposit requirement for your Ally Online Savings Account.
  • No monthly maintenance fees: Having no monthly maintenance fees coupled with no minimum balance is a win-win as far as the best 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 Ally Bank account on the go. Using the app, you can transfer money in and out of the account and do your mobile banking from anywhere in the world. It also offers analystics on your financial habits. The mobile app is available for Android and iOS.

What the Ally Online Savings Account could improve

  • No cash deposits: 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.
  • No physical locations: 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. 

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 are some of the key similarities and differences:

  • Ally charges no minimum balance fees and no monthly maintenance fees. These fees are relatively common at traditional banks, though fees and amounts will vary depending on which bank or credit union you choose. 
  • The Ally Online Savings Account offers an APY of 4.35% (as of Feb. 8, 2024), while the average APY for a traditional savings account is just 0.47% (as of Feb. 8, 2024). You do not need to maintain a minimum daily balance on your Ally Online Savings Account to get a generous APY.
  • Both the Ally Online Savings Account and traditional savings accounts allow you to make up to six withdrawals per billing cycle without incurring any fees. You'll be charged $10 per withdrawal for any additional withdrawals from your Ally Online Savings Account that you make in a billing cycle. Withdrawal fees at traditional banks will vary.   
  • Many traditional banks offer physical branches that account holders can visit to do their banking in person, though the availability of and the total number of locations will vary from bank to bank. While Ally Interest Checking Account customers can withdraw money for free from over 43,000 Allpoint ATMs worldwide, Ally does not have physical branch locations.
  • Ally Online Savings Account customers can withdraw money from their accounts via online transfer, wire transfer, check request, or telephone transfer. Typically, traditional banks offer those withdrawal options in addition to cash or ATM withdrawals as well. 

How to open an Ally Online Savings Account

The process of opening an Ally Online Savings Account is simple. Here's how:

1. Visit the Ally website and click 'Open a New Account.

2. You'll then have the option to check whether you're an existing Ally Bank or Ally Invest customer or not.

3. Click 'Continue,' and then you'll be able to choose an account type, as well as view some basic information about the Ally Online Savings Account, Money Market Account, Interest Checking Account, and Certificates of Deposit Account.

4. Click on 'Ally Online Savings Account' and 'Add This Account.'

5. Ally will request some personal information from you, including confirmation that you are a legal U.S. resident, your name, address, date of birth, email, and occupation. 

6. Once you've added this information, you can submit your application, and someone from Ally will be in touch shortly after. 

How to withdraw money from your Ally Online Savings Account

You can withdraw money from your Ally Online Savings Account in the following ways:

  • Online transfer
  • Wire transfer
  • Check request
  • Telephone transfer

You will not receive a debit card or ATM card when you sign up for an Ally Online Savings Account, so you won't be able to make ATM withdrawals from your account. However, if you sign up for an Ally Interest Checking Account, you will receive an ATM card, and you can use it to make withdrawals at over 43,000 ATMs worldwide.

Other Ally Online Savings Account fees

Ally Bank is transparent about the fees that it does and doesn't charge its account holders. Here's what to expect in terms of fees with an Ally Online Savings Account:

Overdraft fee $0
Stop payment fee N/A
ACH transfers $0
Incoming wire N/A
Outgoing wire $20

Ally Bank customer service

Ally offers customer service assistance 24/7 with real humans through online chat and over the phone, and it prides itself on short wait times. If you'd like to get in touch, you can call 1-877-247-2559 or click to open the online chat window when you're on the Ally Bank website. 

Alternatives to Ally Online Savings Account

SoFi6

SoFi offers a Checking and Savings3 account that’s entirely online, similar to Ally. This allows you to set up your account and manage it from anywhere with an internet connection. SoFi Savings offers an attractive APY of up to 4.60%4 with direct deposit7 and provides FDIC insurance up to $2 million8. Plus, there are no monthly maintenance fees or initial deposit requirements to open an account.

Visit SoFi

…or read our full SoFi review.

Chime®9

Chime is also an online-only financial technology company that partners with two banks to offer checking and savings accounts. We recommend the Chime High-Yield Savings Account10 for people who want to build their savings with the help of its APY of 2.00% (as of Oct. 25, 2023)11. This account doesn’t charge a monthly maintenance fee12, and it offers an automated savings feature13 that helps you move a percentage of each paycheck to your savings.

Visit Chime®

…or read our full Chime® review.

Ally Online Savings Account FAQ

Is Ally the best online savings account?

The Ally Online Savings Account offers some attractive features for consumers, such as no minimum balance requirement or monthly maintenance fees. It also offers a generous APY that's higher than what you'd typically get with a traditional savings account. Ultimately, to choose the best savings account, you'll want to consider your needs and personal finance goals.

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 or credit card. To receive one, you’ll need to also open an Ally Interest Checking Account or Money Market Account.

Is Ally Bank safe?

Ally Financial, formerly GMAC, is a well-established financial institution that's been in business for over 100 years. It offers several financial products for consumers, including the Ally Bank Savings Account. The Ally Savings Account is insured by the FDIC (Federal Deposit Insurance Corporation) up to $250,000, meaning the same rules apply to your money as if it were at a brick-and-mortar financial institution.

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.

Can I have two Ally accounts?

Yes, it's possible to open two Ally accounts. Ally offers several different account options in addition to its Online Savings Account. You can choose to open an Ally Interest Checking Account, Money Market Account, or Certificates of Deposit Account in addition to your savings account. Ally offers a few different CD accounts, including its High-Yield CD, Raise Your Rate CD, and No-Penalty CD, all of which offer competitive rates and a variety of terms.

Ally Online Savings Account: bottom line

We recommend the Ally Online Savings Account to anyone looking to grow their savings over time with its higher-than-average APY of 4.35% (as of Feb. 8, 2024). We also like that you don't have to worry about a monthly maintenance fee and a minimum balance requirement.

We also like Ally’s highly-rated mobile app and 24/7 customer service. However, keep in mind that Ally doesn’t accept cash deposits and doesn’t have physical branches. All banking activities must be conducted online or via the mobile app.

For more of our top recommendations, explore our list of the best online banks.

Customers Bank High Yield Savings Account Benefits

  • Incredible 5.32% APY2 to boost your savings
  • Interest is compounded daily and posted to your account monthly
  • Enjoy 24/7 online access to your account and funds
  • FDIC insured, no fees, $1 minimum deposit

Author Details

Lauren Stewart Lauren Stewart is a freelance writer and personal coach. Get to know her!

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