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An In-Depth Review of Ally Bank’s Rates

Posted April 27, 2018 8:00 a.m. EDT
Updated August 4, 2018 6:00 p.m. EDT

Year Established2004 Total Assets$143.1B

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Since it spun off from General Motors auto financing in 2009, Ally Bank has proved to be one of the best online-only banks in the industry. Like most online-only banks, Ally charges minimal fees for deposit accounts and requires low or no minimum balances.Rates on Ally’s checking, savings, CD and money market accounts are relatively high, but the bank is facing stiff competition from a growing list of rivals. Synchrony Bank, Goldman Sachs Bank USA, and Discover Bank offer similar or higher rates on deposit account offerings and many of the same customer perks, like no minimum balance requirements and robust support for online banking.This Ally Bank review will cover all available savings accounts, including features, interest rates, and which account types may be best suited for your needs. All of our findings were based on analysis of rates from Depositaccounts.com, another LendingTree-owned company. Ally Bank’s Most Popular Accounts

APY

Account Type

Account Name

1.80%

Savings

Ally Bank Online Savings Account

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2.40%

CD Rates

Ally Bank High Yield 12-Month CD

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2.55%

CD Rates

Ally Bank High Yield 3 Year CD

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3.00%

CD Rates

Ally Bank High Yield 5 Year CD

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In this review, we’ll cover:

Ally Bank CD Rates

Ally Bank Savings Account Rates

Ally Bank Money Market Account Rates

Ally Bank Checking Account Rates

Ally Bank IRA CD Rates

Ally Bank IRA Savings Account Rates

Ally Bank CD Rates

While Ally Bank doesn’t ask for a minimum deposit amount to open a CD, their best CD rates are tied to high deposit amounts.

Ally’s CD features three products: the High Yield CD, the Raise Your Rate CD and the No Penalty CD. The APYs currently available depend on your opening deposit and term length. All accounts have no minimum balance requirement, though rates will vary depending on the term and amount deposited.

All of Ally Bank’s CDs have a Ten Day Best Rate Guarantee. If their rate goes up within 10 days and you make a deposit within 10 days of account opening, you will get the better rate. This rate also applies when you renew your CD account. Interest is compounded daily with all accounts and your account will be automatically renewed when your CD matures. If you choose to close a CD account, you have a 10-day grace period after the maturity date.

Ally’s CD rates are lower than some of its competitors. You can easily find a 12-month CD at 2.45% APY with a $500 and a three-year at 2.55% APY with only a $2,000 minimum. Other banks also offer higher APYs on CDs with other terms and often require lower minimum deposit amounts than Ally’s middle tier.

High Yield CD Rates

[Chart-AllyBankHighyieldCDRates]

Up to $5K

$5K-$25K

$25K+

3 months

0.75% APY

0.75% APY

0.75% APY

6 months

1.00% APY

1.00% APY

1.00% APY

9 months

1.25% APY

1.25% APY

1.25% APY

12 months

2.10% APY

2.25% APY

2.40% APY

18 months

2.15% APY

2.35% APY

2.50% APY

3 years

2.50% APY

2.55% APY

2.55% APY

5 years

2.75% APY

2.90% APY

3.00% APY

[/Chart-AllyBankHighyieldCDRates]
  • Minimum opening deposit: None
  • Minimum balance amount to earn APY: None (Rates will vary depending on the term and amount deposited)
  • Early withdrawal penalty:
    • Usually the longer the term, the more interest you’ll be charged

The High Yield CD is a more traditional CD featuring a fixed term and interest rate until maturity. You can choose terms anywhere from 3 months to 5 years, with varying APYs. This type of CD has the highest rates compared with the Raise Your Rate and No Penalty CD. The highest rate is 3.00% APY for a five-year term, with no minimum deposit.

With the High Yield CD however, you are subject to an early withdrawal penalty. The penalty charged depends on your CD terms. Usually the longer the term, the more interest you’ll be charged. Currently, the maximum you may be penalized is 150 days of interest. If the interest you’ve earned so far is less than the penalty, the rest will be deducted from the balance in your CD.

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Raise Your Rate CD

[Chart-AllyBankRaiseYourRateCD]

Term

APY

2 years

2.50% APY

4 years

2.50% APY

[/Chart-AllyBankRaiseYourRateCD]
  • Minimum opening deposit: None
  • Minimum balance amount to earn APY: None (Rates will vary depending on the term and amount deposited)
  • Early withdrawal penalty:
    • For a two-year term, you’ll be charged 60 days interest
    • For the four-year term, you’ll be charged 120 days interest

The Raise Your Rate CD gives you the option to raise your rate during your term, once for a two-year term, and twice for the four-year term. You’ll get the opportunity to do so if the rate goes up and your balance tier increases. Currently, the APY is lower than the High Yield CD, which could mean that you earn less in interest.

Like the High Yield CD, you will also be subject to early withdrawal penalties. For a two-year term, you’ll be charged 60 days interest; it’s 120 days of interest for the four-year term. Like the High Yield CD, the penalty may be deducted from your CD’s balance if the interest you’ve earned is lower than the penalty amount.

You also cannot make partial withdrawals.

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No Penalty CD

[Chart-AllyBankNoPenaltyCD]

Up to $5K

$5K-$25K

$25K+

11 months

1.50% APY

1.90% APY

2.00% APY

[/Chart-AllyBankNoPenaltyCD]
  • Minimum opening deposit: None
  • Minimum balance amount to earn APY: None (Rates will vary depending on the term and amount deposited)
  • Early withdrawal penalty:
    • There is no penalty for withdrawing your money early, after the first six days

The No Penalty CD is only offered for 11 months. This type of CD may be suitable for those who may want to withdraw their money before the term is up — for instance, in an emergency or when you reached your short term savings goal.

There is no penalty for withdrawing your money early, after the first six days. However, if you don’t plan on withdrawing your money for a few years, you may want to consider the other two options for higher interest rates.

You also cannot make partial withdrawals.

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Ally Bank Savings Account Rates

There are virtually no fees with an Ally savings account, no minimum balance requirements, and high interest rates.

Ally Bank Savings Account

[Chart-AllyBankSavingAccount]

APY

Minimum Amount to Open

Monthly Fee

1.80% APY

No minimum

none

[/Chart-AllyBankSavingAccount]
  • Minimum opening deposit: None
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

With Ally Bank’s savings account, you can access funds online or via their app by making an ACH transfer (wire transfers are subject to a fee) or by requesting a check. You can make deposits either with an ACH transfer or via Ally eCheck DepositSM.

However, you do not get a debit card with a savings account, meaning you cannot deposit or withdraw cash from your account. You’re also limited to six withdrawals per statement cycle, although you can make unlimited deposits. If you make more than six, you’ll be charged $10 per transaction. Other fees include overdraft fees, cross border transactions, expedited delivery and returned checks.

While we consider Ally Bank to be one of the best online savings accounts, other online savings accounts have higher APYs as high as 1.60% APY with no minimums and monthly fees. However, not all banks offer a mobile banking option.

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Ally Bank Money Market Account Rates

While Ally Bank’s money market account has some useful features, you can easily find higher rates at other banks.

Ally Bank Money Market Account Rates

[Chart-AllyBAnkMoneyMarketAccountRates]

APY

Minimum Daily Balance

Monthly Fee

0.90% APY

Up to $24,999

$0

1.00% APY

$25,000

$0

[/Chart-AllyBAnkMoneyMarketAccountRates]
  • Minimum opening deposit: None
  • Monthly account maintenance fee: None
  • ATM fee: There are no fees if you withdraw cash from any Allpoint ATM
  • ATM fee refund: You will be reimbursed up to $10 per statement cycle for fees charged at other cash machines nationwide
  • Overdraft fee: N/A

Ally Bank’s money market account rate isn’t the greatest rate you’ll find out there by a long shot — you can easily find money market rates as high as 1.85% APY elsewhere. You can even score a better rate by parking your cash in a regular Ally Bank savings account.

Still, Ally Bank’s Money Market Account has some useful features. You get a free debit card and checks with a money market account. There is no minimum amount to open the account and no monthly fees. There are no fees if you withdraw cash from any Allpoint ATM, but you will be reimbursed up to $10 per statement cycle for fees charged at other cash machines nationwide. You’re also limited to six transactions per statement cycle like the online savings account, though you get unlimited ATM withdrawals. You also don’t get access to online bill pay like you can with a checking account.

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Ally Bank Checking Account Rates

Ally Bank’s checking account provides beneficial features to account holders, but their rate is on the low end compared to other banks.

Ally Bank Checking Account

[Chart-AllyBankCheckingAccount]

APY

Minimum Balance Amount

Minimum Amount to Open

Monthly Fee

0.10%

none

none

none

0.60%

$15,000

none

none

[/Chart-AllyBankCheckingAccount]
  • Minimum opening deposit: None
  • Monthly account maintenance fee: None
  • ATM fee: There are no fees if you withdraw cash from any Allpoint ATM
  • ATM fee refund: You will be reimbursed up to $10 per statement cycle for fees charged at other cash machines nationwide
  • Overdraft fee: $25 (If you don’t have a savings account or didn’t link them together)

Ally Bank’s interest checking account gives you access to online bill pay, transfers between bank accounts, an option to send money to others, as well as free checks and a debit card. There are no minimum amounts to open an account but you’ll get a higher interest rate if you can keep your minimum balance at $15,000. Although we consider Ally Bank to have an all-around great checking account, compared with other banks’ checking accounts, their APY is on the low end.

But, as previously noted, if your minimum balance amount is greater than $15,000, Ally will offer a better rate.

You can send money to friends and family with Zelle®. All you need is the person’s mobile number, email address or bank information, and funds will be transferred via Ally’s app or online. If you link your account to a savings account, you can get free overdraft protection. And you can make unlimited transactions, unlike with the online savings account.

In addition to online transfers, you also get a MasterCard® debit card. Although you cannot make cash deposits, you can easily withdraw cash from any ATM. There are no fees if you take money out from any AllPoint ATM in the U.S. For other domestic ATMs, you’ll get reimbursed a maximum of $10 per statement cycle.

However, if you use your debit card outside the U.S., you’ll be charged a 1% transaction fee. You’ll also be charged a $25 overdraft fee if you don’t have a savings account or didn’t link them together. If you want same-day or overnight bill pay, you’ll be subjected to a fee. Other fees include stop payments, rush delivery (debit card/checks) and returned deposits.

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Ally Bank IRA CD Rates

IRA CD rates at Ally Bank are some of the highest and they’re tiered like their regular CDs.

Ally Bank’s IRA CDs come in terms from three months to five years. Accounts are available as a Traditional, Roth, or SEP IRA, and interest is compounded daily. When the IRA CDs mature, you have a 10-day grace period to withdraw your money or it’ll be automatically renewed. You also have the option to do a rollover to Traditional or Roth IRAs. Both IRA CDs will offer the best rate within 90 days after account opening, or when you fund your account.

Similar to their regular CD rates, Ally Bank offers high rates on their IRA CDs and they don’t require a minimum balance to earn the APY.

IRA High Yield Rates

[Chart-AllyBankIRAHighYieldCdRates]

Up to $5K

$5K-$25K

$25K+

3 months

0.75% APY

0.75% APY

0.75% APY

6 months

1.00% APY

1.00% APY

1.00% APY

9 months

1.25% APY

1.25% APY

1.25% APY

12 months

2.10% APY

2.25% APY

2.40% APY

18 months

2.15% APY

2.35% APY

2.50% APY

3 years

2.50% APY

2.55% APY

2.55% APY

5 years

2.75% APY

2.90% APY

3.00% APY

[/Chart-AllyBankIRAHighYieldCdRates]
  • Minimum opening deposit: None
  • Minimum balance amount to earn APY: None
  • Early withdrawal penalty:
    • 60 days of interest with a IRA 18 months or less
    • 150 days of interest with terms longer than 48 months

The High Yield CD IRA is best for those looking for a short-term option or seeking a higher rate for longer terms. The highest rate offered is for the five-year term with no minimum deposit. For those interested in creating CD ladders, this type of account offers an excellent opportunity.

However, there are early-withdrawal penalties which vary depending on your CD IRA terms. You’ll be charged more the longer the term. The minimum you’ll be charged is 60 days of interest with a IRA 18 months or less, and 150 days of interest with terms longer than 48 months. Usually the longer the term, the more interest you’ll be charged. Currently, the maximum you may be penalized is 150 days’ interest.

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IRA Raise Your Rate CD

[Chart-AllyBankIRARaiseYourRateCD]

Term

APY

2 years

2.35% APY

4 years

2.35% APY

[/Chart-AllyBankIRARaiseYourRateCD]
  • Minimum opening deposit: None
  • Minimum balance amount to earn APY: None
  • Early withdrawal penalty:
    • A two-year IRA will be charged 60 days of interest
    • A four-year IRA will be charged 120 days of interest

The Raise Your Rate CD IRA gives you the chance to increase your rate if your balance tier or the rate for your term increases. You can do this once for a two-year term account and twice for a four-year account. This account is best for those who believe interest rates will go up.

There are no minimums with this account, but you may be subject to a maximum amount depending on the type of IRA you choose. You’re also subject to early-withdrawal penalties. A two-year IRA will be charged 60 days of interest; it’s 120 days for a four-year account. If you’re under the age of 59.5, you may also have to pay another 10% to the IRS.

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Ally Bank IRA Savings Account Rates

Ally’s IRA savings doesn’t come with early withdrawal penalties, but you can get higher rates with a long-term IRA CD.

Ally Bank IRA Online Savings Account

[Chart-AllyBankIRASavingsAccountRates]

APY

Minimum Amount to Open

Monthly Fee

1.80% APY

No minimum

none

[/Chart-AllyBankIRASavingsAccountRates]
  • Minimum opening deposit: None
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

The rate for the IRA Online Savings is variable, meaning it may change after you open an account. Though the rate is lower compared with the other IRA options, you’re not subject to an early-withdrawal penalty, though the IRS may tax you if you’re under 59.5.

If you do make early withdrawals, you’re only allowed a maximum of six per statement cycle. You get charged $10 for each transaction over that amount. To access your money, you’ll need to request a distribution.

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Conclusion

You don’t need to rely on your brick-and-mortar bank for competitive rates, products, and customer service. Ally Bank provides products at competitive rates, with convenient access via their mobile app or online portal.

Ally’s no-minimum opening deposits and fees make it more accessible to everyone. Its online accounts for checking and savings cover all the basics, and with no maintenance fees.

Because there are a growing number of alternative online banks these days, it’s important to compare rates at a number of banks to find the best deal possible. Depositaccounts.com, also owned by LendingTree, is a great research tool you can use to compare rates easily online.

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The post An In-Depth Review of Ally Bank’s Rates appeared first on MagnifyMoney.