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Best High-Yield Savings Accounts of December 2021
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1,202 adults. Field work was undertaken between Aug. 6-7, 2020. The survey was carried out online. The figures have been weighted and are representative of all U.S. adults (aged 18+).
High-yield savings accounts are a low-risk, low-effort way to reward yourself for saving.
With high-yield savings accounts right now, you can make about 0.50% APY (annual percentage yield, which is the expected rate of interest earned over a year). These extra earnings can be small, but over time make a difference.
For example, a traditional savings account that has an APY of 0.01% with $1,000 in it will earn 10 cents per month. That same $1,000 will earn $5 per month in a high-yield account with a 0.50% APY — a rate of return 50 times higher.
Interest rates have been relatively low since the beginning of the COVID-19 pandemic, but rates for high-yield savings accounts are still significantly better than those for conventional savings accounts.
Yet only 21% of banked adults in the U.S. have a high-yield savings account, according to a 2020 NextAdvisor survey. Here’s everything you should know about high-yield savings accounts, along with the accounts we think are the best.
Best High-Yield Savings Accounts of December 2021
Ally Bank – Best Customer Service
Founded in 2009, Ally Bank is one of the most prominent online banks. The high-yield savings account, regularly at the top of the pack in terms of interest rates, is one of the bank’s star products, but the institution also offers no-fee investing on stocks, bonds, and ETFs, free interest-bearing checking accounts, money market accounts, CDs, loans, retirement accounts, and other investment vehicles.
Our survey found 48% of Americans with savings accounts said customer service experience is an important factor when choosing where to open such an account, so it’s important to assess how responsive and engaged a bank is when it comes to questions or issues you might have.
Responsive and accessible customer service
Ally offers 24/7 customer service through its phone hotline and live chat service, which allows you to chat with a representative near-instantly. Ally also offers an estimated wait time on its homepage for each medium. Since Ally isn’t the only bank offering this kind of 24/7 support, we tested the live chat response and helpfulness of the five other banks we considered that also offer it.
Ally’s live chat stands out among the banks that offer this option. Ally provided the best customer service experience of the five; the other banks either required you to log in (i.e., be an existing customer) or talk to an AI chatbot before speaking to a real person. The Ally customer service representative we spoke to was prompt and friendly (our wait time was one minute), and after the chat, we were directed to a customer experience survey and offered the opportunity to be sent the chat transcript via email.
Among all retail banks offering high-yield savings accounts, Ally ranked among the top in J.D. Power’s 2020 U.S. Direct Banking Satisfaction Survey. (We didn’t take into consideration investment banks like Charles Schwab Bank and E*TRADE Bank.) Although Ally ranked slightly behind Discover Bank and Capital One, we believe that the increased accessibility of Ally’s live chat customer service in our independent testing is worth taking into consideration. Prospective customers can easily ask questions before they open an account, as well as quickly get help if they run into any problems during the application process.
ATM network with reimbursement
Ally is covered by a network of 43,000 AllPoint ATMs across the United States. You can use your provided debit card to withdraw cash at in-network and out-of-network ATMs. The bank will reimburse you for up to $10 a month in ATM fees accumulated from those out-of-network ATMs.
No cash deposits
If you receive cash tips or wages, then it could be difficult to work with Ally. There is no way to deposit cash into an Ally savings account at this time, so you would need to find a workaround (such as depositing cash in another institution and then transferring) to take advantage of Ally’s rates and customer service.
Capital One – Best Hybrid
Capital One strikes an interesting balance between a traditional brick-and-mortar bank and a more agile startup. It has locations across the country and carries all the major banking products you’d need (such as checking, savings, and CDs), plus credit cards, while also offering competitive rates. Capital One is beneficial for the consumer who wants all the rewards of a high-yield savings account while maintaining the ability to speak to a bank representative face-to-face.
More than 700 branches
If you prefer to bank in person, then Capital One is a good choice. The bank operates hundreds of branches across the U.S., including a number of coffee shop-style locations that offer a unique spin on stopping by the bank. If you would prefer to apply for a loan, request a replacement for a lost credit card, or open a new high-yield savings account in person, then Capital One provides a good middle ground between pure online banks and brick-and-mortars.
Multiple savings account options
Capital One also offers an IRA savings account (tax-advantaged and specifically designed for retirement) and a kids saving account, which offers a lower APY than the regular high-yield savings account but balances that with child-friendly features and parental controls.
Data breach controversy
In one of the largest hacks ever of a major bank, more than 100 million Capital One customers suffered a data breach in 2019 that left their bank account numbers, Social Security numbers, and other private information vulnerable to fraud.
As a result, the U.S. Treasury ordered Capital One to pay a $80 million civil penalty, according to the Wall Street Journal. “The government has stated they believe the data has been recovered and that there is no evidence the data was used for fraud or shared by this individual,” the bank said in an official statement.
In addition to the fine, Capital One is complying with a U.S. Treasury consent order to up cybersecurity measures. Currently, all individuals whose private information was accessed have been contacted and offered free credit monitoring and identity protection services, according to the bank, and the hacker has been captured by the FBI.
“Honestly, this could have happened to any financial institution,” says Ted Rossman, industry analyst at CreditCards.com. “In this case, the accused perpetrator was caught before she was able to sell or use any of the stolen information. While consumers should be mindful of potential future hacks of all types (banks, credit cards, retailers, etc.), the best fixes are to freeze your credit and check your statements regularly. As long as a bank offers FDIC insurance (or NCUA protection for credit unions), I’d feel very confident.”
AXOS Bank – Best for Cash Accessibility
Founded in 1999 as Bank of Internet USA, AXOS is one of the oldest online-only banks in the country. It offers interest-bearing checking accounts, high-yield savings accounts, CDs, mortgages, personal loans, auto loans, and managed portfolios, and allows customers access to 91,000 ATMs throughout the U.S. AXOS is one of only a handful of online banks that allow people to deposit cash — a boon for those who often deal in cash or receive wages in cash.
Comes with ATM Card
Not every online savings account allows for ATM usage. AXOS provides its customers with ATM cards upon request, allowing you to view balances and make deposits and withdrawals. Keep in mind, though, that the ATM card is not a debit card. You are not able to make purchases and, per federal law, cannot initiate more than six transactions from a savings account per month.
Cash deposits allowed at ATMs and Green Dot locations
With AXOS, you have access to 91,000 ATMs across the U.S. Of the ATMs that allow cash deposits, you can directly transfer those dollar bills into your account. Many of the most popular online banks, like Ally, do not allow you to deposit cash, so we see this as a huge plus for people who receive wages in cash. You can also deposit cash in person at a Green Dot location, which can be found at participating locations of Walmart, CVS, Kroger, Walgreens, Rite Aid, Dollar General, Family Dollar, and other big-box, convenience, and discount stores.
No ATM reimbursements
Some online banks, like Ally, offer full reimbursement of fees incurred from using out-of-network ATMs (up to a certain dollar limit per month). AXOS only offers ATM reimbursement to checking account users, not savings account users, so you will still have to pay $3-5 per ATM withdrawal whether the machine is in or out of network.
Minimum opening deposit
While a minimum opening deposit isn’t a problem for many people, it can still be a barrier to entry for those who don’t have a lot of cash up front. To open an account with AXOS, you need an opening deposit of $250, although there’s no requirement to maintain a minimum balance. If you were already planning to deposit that amount, then the minimum deposit won’t affect you. But if you prefer a savings account with no minimum deposit requirements, other banks might be a better fit.
What is a High-Yield Savings Account?
A high-yield savings account is a savings account that offers a competitive APY, or interest rate. A high interest rate can yield tens or hundreds of dollars in earned interest, depending on how much money you have saved.
Interest rates are always changing, and they have been relatively low since the U.S. entered a recession in early 2020. In other words, a great interest rate for a high-yield savings account is relative, and based on how it compares with other available options. At the moment, interest rates for high-yield savings accounts average around 0.50%, though exact rates vary across banks. In comparison, traditional brick-and-mortar banks tend to have savings accounts with rates around 0.01%.
Emergency funds are one of the most popular reasons people save; 57% of banked* U.S. adults with savings said in a 2020 NextAdvisor survey that they are currently saving for emergencies. Most experts we talk to recommend building a fund of about six months’ expenses, even as you pay down debt. Given that emergency savings should be kept on reserve in an account with easy access, putting that money into a low-risk vehicle like a high-yield savings account is a smart move.
While the accounts we featured here are standouts, there are many good options available. As long as it has a competitive APY, is FDIC-insured, and doesn’t charge any monthly fees, you’ll be better off than you would leaving your savings in a conventional account with a low APY.
*U.S. adults who have checking, saving, MMA, or CD bank accounts.
How We Chose the Best High-Yield Savings Accounts
In August 2020, NextAdvisor conducted a representative survey of 1,202 U.S. adults to understand customer needs and intent surrounding bank account usage. We found that only 21% of banked adults in the U.S. have a high-yield savings account with an APY above 0.50%.
To get a comprehensive overview of the online bank landscape, we compiled a list of the 25 most commonly reviewed and searched-for high-yield savings accounts. We then evaluated them based on more than 20 different factors, including minimum opening deposit, minimum balance requirement, overdraft fees, customer service options and availability, and what other accounts each bank offers.
None of the banks we recommend charge any monthly service or maintenance fees. Because so many reputable banks offer good APYs on free accounts, we think people should take a hard pass on any banks that do charge a monthly maintenance fee to keep a savings account.
In addition, all of the contenders and final picks are insured by the Federal Deposit Insurance Corporation (FDIC), which protects your money up to $250,000 in the event a bank goes out of business.
While all the accounts we chose offer competitive interest rates compared to traditional savings accounts, we didn’t set any hard criteria for APY. This is because interest rates are constantly in flux and can change based on market conditions. Rather, we took a more holistic approach to our review, looking at non-rate features like the quality of customer service, ATM access, and other conveniences to make the banking experience better. For detailed, up-to-date interest rate information, check out our Best Savings Account Rates page.
Find a bank that charges $0 in monthly maintenance fees! You shouldn’t have to pay to use your bank account.
The Case For an Online Bank
Only 30% of U.S. adults have an account with an online bank, according to a NextAdvisor survey. Yet they offer considerable perks.
Compared to national bank chains with a network of physical locations, online-only banks have far less overhead. This helps explain why they offer more competitive interest rates, and typically charge fewer and lower fees. Many of them also forgo common fees (such as monthly maintenance fees) or offer other benefits (such as early direct deposit), in line with their role as banking industry disruptors.
Are High-Yield Savings Accounts Safe?
Yes. High-yield savings accounts are offered by FDIC-insured banks and NCUA-insured credit unions. This backing by the federal government means that if the bank were to shutter, you would be able to recover up to $250,000. Avoid any banks or credit unions that aren’t federally insured.
What to Consider When Choosing a High-Yield Savings Account
There are many factors to consider when reviewing the marketplace of savings account:
- Annual Percentage Yield (APY): This is the interest rate at which you’ll earn money in one year, in exchange for keeping your funds in the savings account. The higher, the better.
- Fees: Many banks require monthly maintenance fees in order to keep the account open. We recommend going with a bank or credit union that doesn’t charge this fee.
- Minimum deposit required: Oftentimes, to open a savings account, you’ll need to provide an initial deposit to the bank, though many online banks allow you to open an account with $0. Keep the minimum deposit in mind if you’re low on cash.
- Minimum balance required: Many banks require a certain amount of money to be in the savings account at all times. If you don’t maintain the minimum balance, you could incur fees or lose your APY for the months you don’t meet the threshold.
- Withdrawal options: You’ll want a bank that has ATMs or partners with ATM companies, so you’re able to withdraw cash on the go. Just keep in mind that federal law limits savings accounts to six monthly withdrawals or transfers.
Best Uses for a High-Yield Savings Account
High-yield savings accounts are all-purpose, allowing you to save for both short-term and long-term goals. They offer competitive interest rates while also keeping your funds liquid in case of an emergency. Here are some ideas for how you can use your high-yield savings account:
High-Yield Savings Account FAQs
Why are interest rates so low?
In March 2020, the Federal Reserve cut target interest rates to near-zero, causing nearly every lender and bank to lower their rates in turn. The low rates make for a competitive borrower’s market for those with a steady income, but the move also led to a decrease in returns on savings accounts and other types of bank accounts.
How do high-yield savings accounts work?
High-yield savings accounts allow you to earn a little bit of money in exchange for keeping your money secure with the bank. Savings accounts are intended for short- and long-term savings goals, whereas checking accounts are intended as your primary account for paying bills and making purchases.
The interest rates for savings accounts tend to be higher than checking accounts, and those rates are even higher for online banks and credit unions. But savings accounts do have some limitations. For example, you can’t make more than six monthly withdrawals or transfers due to federal law, and some online banks don’t allow you to deposit cash into an ATM.
Are high-yield savings accounts FDIC insured?
Yes. High-yield savings accounts from banks are insured by the FDIC, while accounts from credit unions are insured by the NCUA. Any bank or credit union you consider should be federally insured for your protection. All of our picks in this review are federally insured.
How do you open a high-yield savings account?
To open a high-yield savings account, you’ll need to provide information about yourself to the bank or credit unions. You may be asked to provide your full name, permanent address (and proof you live at that address), contact information, date of birth, Social Security number, a photo ID, and bank account information if you’re looking to transfer funds into the new account. You may be asked to put up an initial deposit by cash, check, or online transfer.
From there, you’ll pick between an individual and joint account, and submit the application, which can be approved near-instantly or within a few days. Most major banks — and all online banks — offer ways to open an account online or through their banking apps.
How do you find the best high-interest savings accounts?
There are hundreds — even thousands — of bank and credit unions that offer savings accounts. We recommend doing your research based on what’s best for you? Do you value a high interest rate? Do you need a bank that allows cash deposits? Do you prefer mobile banking to going to a branch in person? Then you’ll need to take APY, ATM locations, and mobile app experience into consideration before opening an account. At very least, it’s best to go with a bank that’s federally insured and doesn’t charge a monthly maintenance fee.
We have covered savings accounts at length. We like to think we’re experts. Read on for more of our savings account coverage:
Ally Bank Review
Who Is Ally Bank Best For?
Ally Bank should appeal to most consumers looking for a solid online bank account. It may be a particularly good fit for customers who want to:
- Earn a competitive return on savings
- Open a savings account with no minimum balance requirement
- Open a checking account that comes with a debit card and no monthly maintenance fees
- Earn more on their cash with CDs that require no minimum deposit
- Bank with an established, well-known online bank
What Does Ally Bank Offer?
Ally Bank offers a broad lineup of financial services. You can open a variety of bank accounts for everyday use and longer-term savings.
Learn more about each type of account Ally offers below.
Online Savings Account
Ally’s Online Savings Account pays a relatively high annual percentage yield (APY) on deposits. (APY is a reflection of the compounded interest rate based on the frequency of compounding.) It has these other features:
- As of Mar. 19, 2021, earn 0.50 %APY, regardless of your account balance.
- There's no minimum initial deposit or ongoing minimum balance required.
- Fund your account by transferring money from another account, mailing checks for deposit, wiring funds, or making a mobile check deposit.
- There are no monthly fees.
To withdraw from your savings, you can transfer funds to another Ally Bank account or a linked account from a different bank. You can also request a check or an outgoing wire. The Online Savings Account does not include an ATM card, but you can open a Money Market Account or Interest Checking Account if you’d like to have easier access to your cash.
Money Market Account
This account is a hybrid of checking and savings accounts: You earn interest, but you can spend your money instantly.
- As of Mar. 19, 2021, earn 0.50% APY, regardless of balance.
- Get a debit card and free checks for spending your money.
- Pay no monthly maintenance fees.
- Enjoy the same ATM access as the Ally Checking Account (see below).
Certain withdrawals from the Money Market Account are limited to six per month, due to federal regulations. You can withdraw cash as often as you want at an ATM, but payments and transfers out of your account count toward the limit.
The Ally Money Market Account pays more than most megabanks, but it’s not a leader among online banks. To find more comparisons, check out our list of the top money market rates.
Even Ally’s savings account rate is higher than its money market rate, so it could make sense to keep cash in savings and move it to your checking account or the money market when you plan to spend.
Ally’s Interest Checking Account is free and pays a modest return on your cash.
- Earn 0.10% on balances of less than $15,000.
- Earn 0.25% on balances of $15,000 or more.
- Pay no monthly maintenance fees.
- Send instant and secure payments to friends and family with Zelle.
- Deposit checks to your account with the mobile app.
This is an excellent option for everyday spending. You earn interest on your account balance, you can easily pay bills online, and you get a debit card for cash withdrawals and everyday spending.
Ally’s ATM setup is decent, too. You can withdraw cash at any Allpoint ATM for free. (Allpoint ATMs are located at convenience stores, restaurants, and financial institutions.) And you can receive up to $10 per statement cycle in ATM fee rebate charges from other U.S. ATMs. Ally Bank does not charge you an ATM fee for using non-network ATMs, but the ATM operator may impose a fee. And Ally does charge you a 1% foreign transaction fee when you get cash outside of the U.S.
You can use the Ally website to find Allpoint ATMs near you.
But remember that there are no Ally branches, so you may need to plan for occasional transactions that require a money order. You can buy those at other locations such as the post office or a grocery store. And if you value face-to-face service, you’re better off looking elsewhere.
Certificates of Deposit
High Yield CDs
Ally has a variety of CDs, including what it calls High-Yield CDs. They are traditional CDs that require you to commit to leaving funds with the bank for a specific length of time. As a result, they may pay higher rates at issue than some of the more flexible options we discuss below. The rate stays the same, for better or worse, until maturity, and there is no minimum deposit required to get started. That’s somewhat unusual for CDs—many of which have a minimum of at least $500—and makes these CDs a great option for anyone who just has a small amount to invest.
|Ally Bank High-Yield CD Rates as of September 24, 2021|
Raise Your Rate CDs
Ally Raise Your Rate CDs have rates that can potentially go up, preventing a situation where you get stuck with a low CD rate for several years. If Ally raises rates on the product you own, you can log in and ask for your rate to increase. With a 2-year CD, you have one opportunity during the term to request an increase. With 4-year CDs, you have two opportunities.
The ability to switch to a higher rate is somewhat rare. Although there may be a few similar products out there, Ally Bank’s Raise Your Rate CD is among the best. As of June 29, 2021, the APY for both 2-year and 4-year Raise Your Rate CDs is 0.55%, and there is no minimum deposit required.
No Penalty CDs
Ally No Penalty CDs are liquid CDs that address the primary drawback of using a CD: Most require you to commit to leaving your money in the account for a set amount of time. But life brings surprises, and you may need to cash out early. You might even want to cash out to take advantage of higher interest rates on newly available CDs.
Liquid CDs allow you to withdraw funds before a CD matures without penalty, but there’s a tradeoff. You typically earn lower rates at issue with these CDs because you have the flexibility to cash out early. For example, compare the standard 1-year CD rate to the No Penalty rates below, and you can see how much that flexibility costs.
No Penalty CDs at Ally Bank are 11-month CDs, but you can withdraw 100% of your money after the first six days. As of March 19, 2021, you can earn:
- 0.50% on deposits of any amount
Other Financial Products From Ally Bank
Liquid CDs are not widespread, but they’re more common than CDs that allow you to raise your rate. Ally Bank is competitive with other offerings, but it’s always good to shop around. The best choice might depend on how much you have to invest and what other products you want from a bank, if any.
Ally Bank offers a robust range of offerings besides bank accounts:
- Auto loans
- Home purchase loans
- Mortgage refinance loans
- Self-directed investment accounts
- Managed investment portfolios
Ally Bank’s Customer Service
Ally Bank earns high marks for customer service, taking second place in the 2019 J.D. Power 2019 Direct Banking Satisfaction Study. Customers particularly like Ally’s account opening experience, as well as the products and fee structure.
What’s more, Ally Bank offers phone support 24/7, and you can see your estimated wait time before calling (so you can decide if it’s the right time to call or not). If you prefer typing, you can chat with customer service representatives 24/7. Customers logged in online or using the Ally Bank app can send secure messages and chat about account-specific issues.
Open an Account With Ally Bank
To get started, visit Ally.com or call 1-877-247-2559. As with any financial institution, you need to provide personal information when opening a bank account.
Benefits In our review, we found thatAlly Bank is a solid option for anybody that wants free online banking. Interest rates aren’t always the highest. But Ally Bank is competitive, so you can earn a decent return without putting effort into chasing rates and switching accounts frequently. With 24/7 customer service and a well-designed site that explains almost everything, you know what to expect with Ally Bank (or you can get the answer easily).
Drawbacks The main weak point is the money market account, which pays less than Ally’s savings account and less than other banks’ money markets. If you need a high money market rate, it may make sense to look elsewhere. Alternatively, you can keep the bulk of your money in Ally’s savings account or a liquid CD—and transfer money to checking or the money market when you need it.
The Balance requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy .
Ally Bank. "Online Savings Account." Accessed Dec. 23, 2020.
Ally Bank. "Money Market Account." Accessed Aug. 17, 2020.
Ally Bank. "Interest Checking Account." Accessed Aug. 17, 2020.
Ally Bank. "Help Center." Accessed Feb. 13, 2020.
Ally Bank. "Raise Your Rate Certificate of Deposit (CD)." Accessed Aug. 17, 2020.
Ally Bank. "No Penalty Certificate of Deposit (CD)." Accessed Dec. 7, 2020.
J.D. Power. "In Direct Bank Gold Rush, Top Performers Find Different Paths to Success, J.D. Power Finds." Accessed Aug. 17, 2020.
Ally Bank. "Ally Bank Help Center: Opening an Account FAQs." Accessed Aug. 17, 2020.
Ally Bank Online Savings Account Review
Ally Bank Savings Account
Whether you are just starting to look for a bank to build your nest egg or you have an account and would like to consider better features, now is a good time to consider an online savings account.
Although you might be unsure of banking online versus the traditional method of brick and mortar banks, there are actually a number of reasons you could be better off with an online bank.
Further, you get the convenience of online and mobile banking, and the ability to speak with someone 24/7 if you need assistance. Plus, you can rest assured knowing your deposits are in good hands and FDIC insured.
Ally Bank is one of the biggest online banks in the U.S. and there's a good reason for that: it offers accounts with low fees and high interest rates.
The Ally Online Savings Account is one of them. See if it can help you reach your savings goals faster.
In this Ally Bank Savings Account review, we'll compare rates, fees and services to other national and online banks.
Ally Interest Rates
One of the drawbacks of leaving your money in a big-bank savings account is that most aren’t paying enough interest to be worth it.
Fortunately, an Ally Bank savings account pays out one of the highest interest rates you will find with both online and major financial institutions.
Ally Bank Online Savings Account Pros & Cons
Interest is also compounded daily, to allow you to earn interest on top of the interest that is added to your balance.
When compared to other leading banks, there really isn’t any competition.
For example, leading and well-known banks like PNC Bank, Bank of America, Wells Fargo, and Chase currently only offer interest rates of 0.01% on their basic savings accounts.
That means you can earn 100 times more interest with an Ally Bank savings account. It's very clear that Ally Bank's savings account will allow your money to grow significantly faster.
Ally Bank allows customers to assign nicknames to each account -- in case you wanted to designate each account for a specific goal.
To make things even easier:
Ally offers the "Buckets" feature that allows you to label the funds in one account for multiple purposes, such as "emergencies" or "bill payments."
It can help those who want additional organizational tools within their savings accounts.
Another nifty savings tool offer by Ally is the "Surprise Savings" program.
Basically, Ally will look at your checking accounts (whether the account is held with Ally or another bank) to identify room for additional savings.
If the program finds extra money that you can save, it will automatically transfer it to your Ally savings account.
Ally will request login information in order to analyze the checking account activity. Be sure that you're comfortable with that.
Will You Need to Pay Fees?
You might find with online bank accounts that there are also fewer fees.
With the Ally Bank savings account, you don’t have to worry about paying a monthly maintenance fee or other hidden fees that you aren’t expecting.
This is one of the drawbacks that consumers face when searching for a new bank.
With major banks currently offering the lowest interest rates, it just doesn’t make sense to pay a monthly fee that can be as much as $10 or more every month. In fact, you risk the account costing you more than you earn in interest.
Other Fees to Consider
Although there aren’t any hidden fees or monthly maintenance fees to be aware of, there are other fees you might come across that aren’t as common. Other fees include:
Ally Savings Account Fees
|Type of fee||Fee amount|
|Monthly Maintenance Fee||$0|
|Excess withdrawal (after 6 withdrawals in a month)||$10 each|
|Returned deposit item||$7.50|
|Overdraft item paid||$25 (limit once per day)|
|Expedited delivery fee||$15|
|Outgoing wire transfer (domestic)||$20|
Again, these are all fees that are rare and usually aren’t incurred on a regular basis.
The more standard fees like the monthly maintenance fee, ACH transfers, statement copies, and cashier’s checks are all $0.
This means, for the most part, you can build your savings account, without it costing you. And, you don’t have to worry about your earnings decreasing because of account maintenance expenses.
Transfer to Other Banks
It’s understandable that although you might choose to build your savings with Ally Bank, you might also have accounts with other financial institutions.
Fortunately, another feature of an Ally Bank savings account is the ability to transfer funds to another institution quickly and easily.
You can not only transfer funds between Ally bank accounts, but you can also transfer money between Ally Bank and other financial institutions, and you can even schedule transfers up to a year in advance.
Customer Service and Account Access
Many consumers today find that it’s difficult to live without the convenience of online and mobile banking.
Most online savings accounts provide both of these features so that you can access your bank account at any time, right from the convenience of your mobile device, tablet, or laptop.
You not only have access to your banking information 24/7 but with an Ally Bank savings account, you can also speak with someone 24/7.
This means you can contact customer service immediately by phone, chat, or email.
Plus, you can check the website for call waiting times to help you determine the best time to contact customer service. Most of the time, your wait time won’t be longer than one minute.
How Secure is Ally's Savings Account?
If you are new to online bank accounts, you might wonder how safe your money actually is when you leave it with a bank that is only online.
Fortunately, banks like Ally are sometimes even more secure than others, and your deposits are FDIC-insured up to the maximum allowed by law.
Further, because it is an online bank, Ally has gone the distance to ensure that they can guarantee online and mobile safety.
You won’t be liable for any unauthorized transactions that are made online or through mobile banking, as long as you report the transaction within 60 days of when your statement is available to you.
If you still aren’t convinced, as a bonus, Ally Bank also offers free security software to protect up to three devices with Webroot SecureAnywhere software.
Plus, Ally uses features such as 2-step authentication and other security strategies, as well as fraud and identity theft tools and personal tips to help protect you from malware and other potential security concerns.
Compare to Other Online Savings Accounts
Ally Bank is a popular destination for people looking for great savings rates, but there are others that may come up during your search for an online savings account.
Take a look at your other options to see how Ally's savings account stands among them:
Capital One 360 Performance Savings
The online savings account from Capital One 360, Capital One's online banking division, is very similar Ally's savings account. It does offer a lower savings rate.
However, the 360 Savings account doesn't charge excess withdrawal fees -- the bank will just close your account if you do it too often. It also lets you create multiple accounts with nickname just like Ally.
Synchrony Bank High-Yield Savings Account
Synchrony Bank offers an online savings account with an impressive savings rate. Its biggest drawback is the lack of a dedicated mobile banking app -- not a major hurdle if you don't really need it.
Final Verdict: Great for All Savers
As you could probably guess, online savings accounts provide all the convenience and security you would expect from any bank.
Some of the best features, however, include one of the highest interest rates available from any bank, and no hidden fees.
With an Ally Bank savings account, you can save your money for college, an event, a vacation, or an emergency fund, and earn the most interest without paying ridiculous fees just to have the account.
Although there are many other traditional banking options as well as online banks like Ally, there isn’t any that can really compare when it comes to interest rates, fees, and features.
You already know you need a savings account, now you just need to find the right one for you and your family.
When you look at the Ally Bank savings account against nearly any other traditional bank or online bank, the others don’t quite stack up.
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Ally Bank CD Rates: December 2021
Ally Bank offers seven CD terms, ranging from three months to 60 months. The bank’s CD rates tend to be competitive among online banks, especially for its 18-month CD. Rates range from 0.15% APY for a three-month CD to 0.80% APY for a 60-month CD. There is no minimum deposit requirement to open a CD.
Here’s an overview of Ally’s High Yield CD rates. Rates are accurate as of Nov. 28, 2021.
Overview of Ally Bank CDs
Ally Bank offers high-yield CDs with competitive rates and no minimum deposit requirement. Interest on Ally CDs compounds daily and is either credited to your account annually or at maturity, depending on your term length.
Ally CDs automatically renew following the 10-day grace period after the maturity date. During the grace period, you can also choose to change term lengths, add or withdraw funds, or close the CD.
Like most banks, Ally Bank charges a penalty any time you withdraw funds before your CD reaches maturity. Early withdrawal penalties on Ally CDs range from 60 days’ interest to 150 days’ interest, depending on your CD term.
Also available from Ally Bank are two other CD types: Raise Your Rate CDs and No Penalty CDs. Raise Your Rate CDs, available for either two- or four-year terms, allow customers to increase their CD rate (0.55% APY) one to two times, depending on the CD’s term length, if rates go up on CDs. The 11-month No Penalty CD earns 0.50% APY and allows you to withdraw your full balance, including interest earned—at any time after the first six days from funding—without paying a penalty.
How Much Can You Earn With Ally’s CD Rates?
CDs are a great way to earn extra savings if you have funds you don’t need access to right away. The amount of interest you’ll earn with an Ally CD depends on your account balance and CD term length.
Here’s what you can earn with Ally’s High Yield CDs with a $10,000 investment, assuming the earnings are compounded daily:
How Ally’s CDs Compare
Ally offers some of the best CD rates you’ll find. That’s especially impressive, considering there is no minimum deposit requirement. The rate on its 18-month CD is particularly competitive. Like most online banks, Ally’s CD rates are much higher than the national average, according to the FDIC.
Always compare CD rates at several banks and credit unions to get the best rate possible. You want to receive the highest possible return on your investment.
About Ally Bank
Ally Bank is a full-service online bank offering an assortment of personal banking products and services, including checking, savings, money market, CD accounts, mortgages, auto and personal loans, and investment and retirement services.
Founded in 2009, the popular online bank is known for its low fees, competitive rates, and 24/7 customer service. Ally Bank is based out of Sandy, Utah.
Frequently Asked Questions (FAQs)
What do you need to consider before opening a CD?
Before opening a CD account, be sure that you won’t need access to those funds for the length of your desired CD term. It’s also a good idea to compare rates, minimum deposit requirements and early withdrawal penalties to help ensure you’ve found the best CD for you.
What are the pros and cons of a CD?
In studying the pros and cons of CDs, you will find that CDs may offer more competitive rates than savings and other deposit accounts. Also, CDs at banks are FDIC insured up to legal limits, so your deposits are safe. CDs come with fixed interest rates, which means you’ll still earn a competitive rate even if rates drop. Unfortunately, this also means you’ll lose out on more earned interest if market rates increase during your CD term. Also, if you need access to your funds before your CD term ends, you’ll usually end up paying a costly early withdrawal penalty.
Do all CDs charge an early withdrawal penalty?
No, not all CDs charge early withdrawal penalties. Some banks, like Ally, offer no-penalty CDs that allow you to withdraw your full balance during your CD term without penalty.
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Ally Bank Totally Eliminates Overdraft Fees For All Customers
NEW YORK (CBSDFW.COM/AP) — There will be no requirements or restrictions for customers as Ally Financial ends overdraft fees entirely on all of its bank products. The move makes Ally the first large U.S. bank to end overdraft fees across its entire business.
It’s a major move by Ally, an online-only bank, and for the industry, which has been reliant on overdraft fees for decades to boost profits, often at the expense of poorer Americans who can’t afford to pay such fees in the first place.READ MORE: Bedford Police Arrest Suspect In Connection With Homicide
Critics of the practice often cite what they call the $38 cup of coffee, where a bank customer uses a debit card to buy a coffee, overdrafts, and ends up paying a $35 fee on top of the $3 drink.
In its announcement, Ally cited specifically the impact that overdraft fees have on Black and Latino households, which are historically poorer than their white counterparts and are hit with overdraft fees more often. It’s also a common reason why Black and Latino households choose to be “unbanked,” that is being without a bank account, in order to avoid the fees that often come with these accounts.
“Overdraft fees can be a major cause of anxiety,” said Diane Morais, president of consumer and commercial banking at Ally Bank, in a statement. “It became clear to us that the best way to relieve that anxiety was to eliminate those fees.”
The announcement affects roughly 3.6 million checking, savings and money market accounts, the bank said. While Ally is an online bank it currently has nearly 70,000 ATMs across the country — with hundreds of those in Texas.
Ally did not earn significant fees from overdrafts. The most Ally charged each customer for overdrafting an account was $25 per day, instead of per transaction. Morais said roughly one out of every 12 Ally bank customers overdrafted at some point. Ally does not expect that scrapping overdraft fees will have a major impact on the company’s full-year profit forecasts.READ MORE: Sugar Bowl Matches No. 6 Baylor Against No. 8 Mississippi
Customers who do overdraft with Ally will get their transactions approved at the bank’s discretion, with the smaller transactions likely to be approved. Customers will have six days to bring the account back into positive territory.
The pressure to end overdraft fees has been intensifying for years. Politicians such as Rep. Katie Porter, D-Calif., Rep. Maxine Waters, D-Calif. and Sen. Elizabeth Warren, D-Mass., have used their positions in Congress to push bank CEOs to reconsider their usage of the fees. Regulators such as the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency have also pushed banks to come up with solutions to stop charging customers $35 for an overdraft.
In response, the industry has been inching away from overdraft fees, albeit reluctantly. Large banks like Bank of America and Wells Fargo both now offer products without overdraft fees, although they come with more limited features than their other accounts. Many banks suspended overdraft fees early last year when the pandemic struck. Other banks, like regional banking giant PNC, have introduced features to their bank products to help avoid the fees in the first place.
However, Ally is the first big U.S. bank to get rid of overdraft fees altogether.
But banks are still heavily reliant on overdraft fees for revenue. The industry collected more than $12 billion in overdraft fee revenue last year alone, according to industry research.MORE NEWS: Sen. Ted Cruz Reacts To News Of Former Sen. Bob Dole's Passing
(© Copyright 2021 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)
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"As a baby boomer, I was hesitant to open an account with an “online bank”. What started as a checking account 3 years ago has expanded to CD's, even Ally's brokerage services. I receive better customer service from Ally than I do my local bank. Even better since I can do it from the comfort of my own home - Love it!” - Kirk C.
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