Ally Bank savings account

The Good

• Same day ACH transfers (typical is 3 days)
• Allpoint ATM network PLUS $10 reimbursement
• $250,000 max ACH transaction amount
• Offers checking accounts & full banking services
• Part of the Zelle network to pay friends and family

Ally Bank has become one of the dominant online banks, and that’s probably what you know them as.  However, they’ve been around since the 1919, originally specializing in auto financing and spent most of the 20^th century as GMAC.  In 2010, they rebranded to Ally and then went public in 2014.  Today, they have one of the most robust financial service offerings that you will find at any bank – high yield savings accounts, checking accounts, home loans, auto loans, investment accounts, etc.  All supported by some savvy marketing.

As of this writing, Ally is offering a 1.75% rate on savings accounts which puts it near the top of the best rates.  While it’s not the absolute highest, it is close enough that it warrants looking at the other features to decide if Ally is the savings account for you.  Of these features, one we like is free same-day ACH transfers – up to $250,000 per day.  So as long as you are within the federally mandated six transactions per month, the amount of money you can move should be more than sufficient for most people.

What about those large life purchases like a house where you need to wire money?  It’s a $20 fee.  That’s less than the $30 charged at many banks.  Ally Bank also offers a network of ATMs where savings accounts can be withdrawn from for free, powered by the Allpoint network.  You can find the eligible ATM location nearest to you, but they are in many CVS and Walgreen’s as well as other stores which may be near you.  For those occasions where you find yourself needing cash at a restaurant or kids theme park or someplace random (because it’s happened to all of us), they even reimburse you up to $10 per month for the fee that the other bank charges.

Finally, Ally is a traditional bank offering checking accounts and other services.  So you don’t need to think of them as just a savings account.  If you need a mortgage or a loan, for instance, Ally can provide this all under one roof.  Their website is easy to understand and there mobile app is highly rated.  So you get the convenience of a high tech modern bank, but the services of one that has been around for a century.

The Bad

• $0Charges for wires & some other fees
• Lower ACH max for high-net worth individuals

There isn’t much NOT to like about Ally.  In comparing with the competition, they do charge for some fees like wires which you can get for free elsewhere.  But it’s a trade-off.  The companies like Marcus by Goldman Sachs that are going to offer free wire fees transfers will also lack in other areas.  Namely, they won’t make it as cheap & easy to pull money out via ATM and won’t offer other banking services.  So you need to decide what’s more important to you.

Along these same lines, Ally Bank may not be the best option for high-net-worth individuals moving a lot of money around.  First, while the Ally APR rate is only a bit lower than the best rate available and not consequential for most people, that adds up for individuals stashing millions of dollars away in savings.  Second, while a $250,000 maximum daily ACH transfer is plenty for most of it, it might not be enough for these high earners.  If that applies to you, look to a bank that has a higher daily transfer amount.

The Summary

Ally Bank is an industry leader in online banking and high yield savings accounts.  There might be a few cases where a consumer is not going to touch his or her money for years, and they’d be happy with a rival bank that has a very slightly higher rate.  Or there might be a high net worth individual who needs to transfer $1,000,0000 at a time.  But for everyone else, Ally Bank is going to present an excellent option for high yield savings account that will offer easy access to your funds, no surprise fees, and a suite of great online tools.