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

Ally, founded in 2009 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.

I personally chose Ally for my HYSA due to its high APY, impressive customer service, and its “buckets” feature, which allows me to easily keep track of my progress when it comes to my savings goals. I also appreciate that Ally offers several different account types. Through my Ally mobile app, I have access to several different accounts from anywhere, any time of day.

Here are some other details of the Ally Online Savings Account:

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What we like about the Ally Online Savings Account

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

• Relatively high APY. Ally offers an annual percentage yield (APY) of 4.20% (as of 08/09/24). While this is not the absolute highest APY out there, it is well above the national average. This high APY will make your money work harder for you than at most traditional banks.
• No minimum balance or minimum initial deposit. There is no minimum account balance or minimum initial deposit requirement for Ally’s Online Savings Account, which makes getting started easier for new savers.
• 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.
• Savings buckets. My personal favorite feature of the Ally Online Savings Account is the ability to organize your savings goals into “buckets.” While some other savings accounts offer tools to create savings goals, I find Ally’s to be the most intuitive and easy to use. Using the buckets feature, you can separate your savings into up to 30 categories (mine include “Emergency Fund,” “Vacation,” and “Gifts”), while still earning interest on the sum total in your account. You can even set up your recurring transfers to automatically be divided among your buckets. This makes it easy to visualize the progress you are making toward your savings goals.
• Savings boosters. Ally also offers features to help you maximize your savings beyond what you deposit. If you have an Ally Spending Account, you can opt in to round-ups, which will round up transactions from debit card purchases, electronic payments, and checks and deposit that money into your savings. You can also opt in to “Surprise Savings,” a feature that will analyze your linked checking accounts and automatically move over any money it deems safe to save based on your spending habits.
• Direct deposit option. You can save money each time you get paid by directing as much 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 will 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 analytics on your financial habits and allows you access to any other Ally accounts you may have. The mobile app is available for Android and iOS devices.

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. 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:

• Fees. 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.
• APY. The Ally Online Savings Account offers an APY of 4.20% (as of 08/09/24), while the average APY for a traditional savings account is just 0.46% (as of 9/16/24). You do not need to maintain a minimum daily balance on your Ally Online Savings Account to get a generous APY.
• Withdrawal limits. Both the Ally Online Savings Account and traditional savings accounts have limited withdrawals per billing cycle without incurring any fees. The Ally Online Savings Account allows up to 10 withdrawals or transactions per cycle. While it does not charge “excessive” fees, Ally does state that it may choose to close accounts that frequently exceed this limit. Withdrawal limits and fees at traditional banks will vary.
• Branches. 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.
• Withdrawal options. 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.

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 more than 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:

Ally customer service

Ally offers customer service assistance 24/7 through online chat and over the phone, and it prides itself on short wait times. You can even check the current wait time on Ally’s website.

I use Ally’s chat feature to ask straightforward questions about my account and find it to be very helpful. For more complex questions, I recommend calling and speaking to a customer service representative. The interactions I’ve had have been friendly and productive.

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 logged in on the Ally Bank website.

Ally Online Savings Account FAQ

Bottom line

I recommend the Ally Online Savings Account to anyone looking to grow their savings over time with its higher-than-average APY of 4.20% (as of 08/09/24). For beginners especially, it’s an added perk that you don't have to worry about a monthly maintenance fee or a minimum balance requirement.

I also like Ally’s buckets and boosters features that help you visualize your goals and maximize your savings. You can access these features and all of your other banking needs through 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.