For a while now I've been looking into all the online high yield savings accounts because we wanted to find a place to put our hard earned emergency savings. As of this writing, because we're so conservative, we're currently sitting on close to 12 months of expenses in savings. As you might expect, 12 months of expenses is a nice chunk of change to be earning interest off of. We wanted to make sure we were putting our money in a place where it would be earning good interest, but also that it was a solid bank with a good reputation.
Today I’m reviewing one of the banks that we ended up getting an account with, Ally Bank.
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Ally Bank – Who Are They?
The brand – Ally Bank – has been around for a year or two now, although they aren't a new flash in the pan bank. A lot of people don’t realize is that Ally Bank is the new face of an old name, GMAC bank. They changed the name in May of 2009 at a time when they were giving the company a face-lift, and giving a promise to be the customer’s “ally”. While the old GMAC bank wasn't my favorite bank – and the fact that they needed a face-lift from the start had me skeptical. But when you also factor in the fact that they have one of the competitive bank rates right now, and that so far they've gotten good reviews – I was more than willing to give them a shot.
Kiplinger's Personal Finance named Ally Bank high yield savings account the “Best Savings Account” for 2009!
Is My Money Safe At Ally Bank?
Whenever you're considering signing up for a new bank account, it's important to find out if your money will be safe at the institution, and whether or not the bank is insured. Ally Bank is fully FDIC insured, and has been since August 2004 – under their old name of GMAC. If the bank has problems and goes bankrupt, you’ll be fine – as long as you don’t have more deposited than the FDIC insurance will cover. Currently that amount is $250,000 per depositor.
Fees, Minimums And Other Features Of Ally Bank
Ally Bank’s high yield savings account has low fees, no minimum balance and you can open with zero dollars if you want!
- Open with $0
- No minimum balance
- No monthly fees
- Ability to create sub-accounts with different names and account numbers.
- Daily compounded interest for maximum earnings
- 24 hours a day, 7 days a week customer service at 1-877-247-ALLY (2559) for 24/7 assistance or by e-mail at email@example.com
- FDIC insured up to $250,000
- Six withdrawals or transfers per statement cycle. (mandated by the government for savings accounts)
- high level of online security
Open An Account With Ally Bank
I opened my account with Ally Bank about 4-5 months ago. It was pretty simple.
It’s a 5-step process. You’ll have to give them some basic information (including your SSN and drivers license), and they’ll do a hard credit pull. Then you just set up your initial deposit from your linked account, set up a few account options and you’re set to go. No fuss, no muss.
Other Ally Bank Account Types
In addition to it’s competitive high yield savings accounts Ally Bank also has other options available including classic CDs, no penalty CDs (ability to withdraw early with no penalties) and money market accounts. All of them seem to have rates that are currently competitive. For more details about their other account options, click here.
I Signed Up For Ally – You Should Too!
I've now been with Ally Bank for several months, and so far I've been extremely satisfied. They offer some of the highest interest rates in the country and all of their accounts are FDIC insured (to find current updated rates, go here). Add to that their solid 24/7 customer service (which I have used more than once) and other account type options, and you have a good solid bank that does what it should.
If you’re looking for a good high yield savings account where you can put your money, I think Ally Bank should be near the top of your list. I know it reached the top of mine, and was one of the accounts I ended up opening.
Do you have an account with Ally Bank? How do you like them? What are the pros and cons of their accounts? Tell us your thoughts in the comments!