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If you want a full-service online bank with a high-yield savings option, you might consider Ally Bank. It offers an account with 4.20% APY and no minimum deposit requirements.
Find out more about the annual percentage yield (APY) for Ally Bank savings products and how you can open these accounts in this guide, which includes:
As of April 2024, the Ally Bank APY is 4.20%. Interest is credited to your account once per month as a total earned amount.
This online bank account provides high-yield savings across all balance tiers, which means the Ally savings account doesn’t have balance requirements at this time.
However, the bank manages accounts with an eye toward three tiers.
In the future, APYs may change for each tier, which are:
If Ally returns to a tiered APY structure in the future, the APY you earn in a given month is based on the balance in your account on the day the statement cycle ends.
Ally Savings Account Interest Rate, Fee and Deposit
| APY | Monthly Fee | Minimum Deposit |
|---|---|---|
| 4.20% | $0 | $0 |
Ally doesn’t charge any maintenance fees for its savings accounts, regardless of your balance tier. You also won’t pay fees for receiving incoming wire transfers or initiating or receiving ACH transfers — even expedited transfers. Ally also doesn’t charge an overdraft or excessive transaction fee.
Ally considers withdrawals and transfers, checks and debit card use as transactions on its accounts. For the high-yield savings account, you are allowed 10 transactions per month. Ally notes that it doesn’t charge for going over this amount. However, if you routinely exceed the transaction limit, Ally may close your account. Note that deposits do not count as transactions for this limit.
While day-to-day management of your account is fee-free, Ally does charge fees for some specific types of transactions or work.
You’ll pay:
Before you open an Ally savings account, you should always check the current interest rate offered for accounts of that type. Ally is quite transparent about its rates and fees, and you can typically find the current APY offered on high-yield savings accounts on the Ally website.
Ally also notes that the APY it publishes related to savings accounts is variable. That means it may change with the market once you open your account.
You can typically check the interest rate on your account at any given time by turning to your mobile app or online banking portal. Navigate to your account and select the option that allows you to see current account details. Ally should include your earnings APY rate there.
If you ever have any trouble understanding what your APY is, you can also reach out to Ally customer service. Ally Bank offers assistance via phone.
The average national deposit rate recorded by the FDIC as of April 2024 is 0.46% APY. That gives you an idea of what many financial institutions, including local banks and credit unions, offer.
At 4.20%, the Ally savings account interest rate is more than nine times the average rate.
Some banks offer as little as 0.01% APY on interest-bearing checking or savings accounts, and they might charge maintenance fees on top of that.
You can see how the Ally Bank savings account interest rate compares to other banks in the table below.
How the Ally Savings Account Interest Rate Compares
| Bank | Interest Rate |
|---|---|
| Ally Bank | 4.20% |
| American Express | 4.30% |
| Barclays | 4.35% |
| Capital One | 4.25% |
| Discover | 4.35% |
| Marcus | 4.50% |
| Synchrony | 4.75% |
| U.S. Bank | 0.01% |
| Wells Fargo (Ways2Save Account) | 0.46% |
To help you maximize your savings further, Ally Bank compounds interest daily. This means that the interest on your balance is calculated each day, and the total amount is credited to your account monthly.
Daily compounding can help you maximize savings in a few ways. If you leave the same balance in your account long-term, daily compounding ensures you earn just a little bit more than monthly compounding does. And if you take money out of your account later in the month, you benefit from daily compounding on the total amount for days earlier in the month.
To help you better understand how much you could earn with an Ally savings account, let’s take a look at a few scenarios. You can also try using our savings calculator.
Imagine you deposit $2,000 to start. Every month, you add $300 in savings. This is how much you would earn in four years.
Interest Earned on $2,000 Initial Deposit and Additional Deposit of $300 per Month
| Length of savings | Total balance | Interest amount earned |
|---|---|---|
| 1 year | $5,756 | $156 |
| 2 years | $9,673 | $473 |
| 3 years | $13,757 | $957 |
| 4 years | $18,016 | $1,616 |
Consider you started with $5,000 in savings and added $300 every month. This is what you could save if you did this for 10 years at Ally Bank’s 4.20% APY.
Interest Earned on $5,000 Initial Deposit and Additional Deposit of $300 per Month
| Length of savings | Total balance | Interest amount earned |
|---|---|---|
| 2 years | $12,934 | $734 |
| 4 years | $21,563 | $2,163 |
| 6 years | $30,947 | $4,347 |
| 8 years | $41,151 | $7,351 |
| 10 years | $52,248 | $11,248 |
Savings and interest earnings can add up over time even if you can’t manage a large initial deposit. Consider the table below, which reflects savings and interest for someone who starts with $100 as an initial deposit and puts $100 per month in savings for years.
Interest Earned on $100 Initial Deposit and Additional Deposit of $100 per Month
| Length of savings | Total balance | Interest amount earned |
|---|---|---|
| 2 years | $2,608 | $108 |
| 4 years | $5,335 | $435 |
| 6 years | $8,301 | $1,001 |
| 8 years | $11,526 | $1,826 |
| 10 years | $15,033 | $2,933 |
As you can see, the amount you can earn with an Ally Bank savings account depends on several factors, such as:
The variable APY may also impact how much you can save, so it’s important to note that the above tables are for illustrative purposes only.
Whether the Ally high-yield savings account is the best savings account for you depends on your personal preferences and financial goals.
This is an online savings account, so you won’t have access to the services of a brick-and-mortar branch as you would with a traditional savings account at your local bank or credit union.
You also don’t get a debit card with the Ally savings account. However, if you also set up an Ally Bank spending account — that’s what Ally calls its checking account products — you do get a debit card. You could theoretically link your savings and checking accounts for fast funds transfers between the two, so you have access to savings via ATMs.
Ultimately, an Ally savings account may be a good choice for those who don’t mind managing accounts via mobile devices and internet portals. The lack of minimum balance requirements makes it easy to set up a savings account with Ally, and you can use options like direct deposit to build your savings in the future.
Consider these pros and cons before opening an account.
Ally only offers savings accounts for individuals or joint owners who are 18 years of age or older.
To open a savings account, you will also need to provide your legal name — the name on your legal form of ID — as well as your birthdate, Social Security number or tax identification number and a residential address in the United States. You may also need to provide pictures of your license or another form of ID to demonstrate that you are who you say you are.
Once you gather all that information and documentation, you can go to the Ally Bank website. You will need to create a login account with Ally Bank before you can proceed to set up various banking products. Then, you can review all the savings, checking and banking products and select the ones you want to set up.
The actual application to open a new savings account with Ally should only take a few minutes. Once you complete the webforms, Ally walks you through setting up and funding your new account. You typically get an email about your account almost immediately, and once your deposits are completed, you begin earning interest. It can take a couple of business days for the entire process.
As a full-service online bank, Ally offers a number of savings options. These include money market and certificate of deposit accounts.
The Ally money market account provides an impressive 4.20% APY as of April 2024.
The fees and APY are the same for money market accounts as they are for high-yield savings. That does mean that the APY is variable and could change with the market. It also means that Ally Bank could decide to return to the balance tier structure, and you might earn more or less per month based on your ending balance.
Money market accounts also let you access your funds via ATM, and you can make unlimited ATM withdrawals. You’re limited to 10 other withdrawal transactions per month.
Ally offers high-yield CDs as well as products called Raise Your Rate CD and No Penalty CD. Generally, the APY you can earn depends on the term of your CD — how long you agree to leave the funds in the account before the CD matures.
The Raise Your Rate CD starts at 3.75% APY, and you can choose a two or four-year term. You have an option with this CD to increase your rate if the Ally Bank APY for that type of CD term and balance amount increases while you’re holding the CD. You get this option once for the two-year CD and twice for the four-year CD.
The No Penalty CD has an APY of 4.00% and an 11-month term. This is the only CD from Ally that doesn’t come with early withdrawal penalties. If you withdraw your funds from the CD any time following the 6th day after you funded the account, you keep your funds and any interest accrued to that point without a penalty.
The APY for regular high-yield CDs with Ally depends on your terms. Terms range from three months to five years, and the APY ranges from 3% to 3.90%.
Yes, Ally Bank banking accounts are insured by federal deposit insurance. This means that you are covered for up to $250,000 per depositor per account. That coverage is to help ensure you don’t lose your funds if Ally Bank experiences a critical failure.
Yes, the savings account product from Ally Bank is considered a high-yield savings account. It provides APY earnings that are around nine times the federal average, as reported by the FDIC in November 2023. It also provides an APY that is competitive with other banks that offer this type of savings account without minimum deposit or balance requirements.
No, Ally Bank doesn’t have any hidden fees. It’s fairly transparent about its fee structures on its website, so you can understand the cost of a potential account even before you set it up. That being said, if you plan to hold a savings account, withdraw from it less than 10 times per month and avoid domestic wire transfers and other special circumstances, you may not ever pay any fees for an Ally savings account.
The Ally savings interest rate as of April 2024 is 4.20% APY. This rate is variable, which means that it can rise and fall over time as interest rates in the market change.
Sarah Stasik is well versed in personal finance thanks to her previous role as a Revenue Cycle Manager for a Fortune 500 healthcare company. Using her inside knowledge and expertise, Sarah often covers topics ranging from insurance and the economics of private healthcare to personal finance and small business management.
Over the past 12 years, Sarah has contributed to numerous publications in the personal and small business finance sector, including content on budgeting, bankruptcy, small business accounting, and financial tech. Her writing focuses on making complex or seemingly daunting financial topics more accessible and providing helpful, relevant resources for readers.
