Ally Savings Account Rates (May 2024) (2024)

Top Offers of May 31, 2024

You could get over 10 times** the average savings account rate with our featured partners below.

*Annual Percentage Yield

**Accurate as of May 2024, assuming FDIC average savings rate of 0.45% and $2,500 deposit.

While Ally reserves the right to adjust its APYs at any time, the company has had competitive rates throughout its history. Some banks cap the amount of money that gets their best rates, and some reserve their top rates for certain balance tiers. But with Ally, no matter your balance, you earn the same 4.20% rate.

Ally’s savings account compounds interest daily. This is better than accounts that compound monthly, quarterly or annually because interest is added to your balance more often, leading to higher returns.

While it doesn’t match some high-yield-CD rates, an Ally savings account gives you more flexible access to your money with no early withdrawal penalties.

Ally Savings Rates vs. Other Top Banks

Although the interest rate on Ally’s Bank’s savings account is impressive, it’s not unusual. Many online-only financial institutions have rates that are similar or even slightly higher. The fact that Ally doesn’t have a minimum deposit requirement also puts it on par with many other banks and credit unions.

The table below compares Ally’s savings account rate to the rates from some of the country’s top banks:

How Ally Offers Higher Rates for Savings Accounts

High-yield savings accounts like Ally’s provide better interest rates to attract and keep customers. Traditional bank accounts from brick-and-mortar banks and credit unions might pay you just pennies every month, but online-only accounts often come with considerably higher APYs.

Ally is able to offer such a high interest rate because it doesn’t have physical branches. While you could earn more interest with Ally, you’ll need to look elsewhere if you prefer in-person banking options such as making cash deposits or ATM withdrawals.

Ally Bank is a member of the Federal Deposit Insurance Corporation (FDIC), so its deposit accounts are insured.

>> Related: Learn more about the average savings account interest rate

To help you understand how valuable an Ally savings account could be for your personal finance goals, the company’s website features an interest rate calculator. Simply enter your account’s current balance and your APY, and your yearly interest gets calculated for you.

For example, if your balance is $10,000 and your rate is 4.20%, you’ll earn $420 in interest in one year. That’s impressive compared to what you’d get with a typical savings account that pays less than 1%.

Ally Bank Accounts

You’ll have access to more savings tools if you link an Ally savings account with one of its checking accounts. The optional Round Ups feature rounds transactions such as debit card purchases to the nearest dollar. Once you hit at least $5, that amount gets transferred to your savings.

Additionally, Ally’s Surprise Savings feature analyzes your spending in your linked checking account from time to time and automatically transfers money to your savings account if it detects you may not need it right away.

Ally Money Market Account

Ally’s money market account pays out a variable rate that currently sits at 4.20%. You can access your money with a debit card, checks or Allpoint ATMs.

Ally Certificates of Deposit (CDs)

Ally gives savers three options for CDs: high yield, Raise Your Rate and no penalty.

• High-yield CD: Choose from seven CD terms ranging from three months to five years.
• Raise Your Rate: If Ally’s rate for your balance tier rises, you can raise your rate once in a two-year term or twice in a four-year term.
• No-penalty CD: Unlike most CDs, it allows you to pull your money out early without paying a fee or losing the interest you’ve earned. You can make a withdrawal as soon as seven days after you fund your CD.

• Provide personal information: Ally’s online form asks for details including your name, Social Security number and address.
• Fund your account: After you click through a few screens, Ally asks you to fund your account. There’s no minimum deposit requirement, though, so you can open your account before transferring funds from another account, setting direct deposit up or sending Ally a check or wire transfer.
• Explore all of Ally’s features: After opening your account, you can use Ally’s dashboard or mobile app to manage your savings buckets or explore the company’s other products.

>> Related: Learn more about how to open a savings account

An Ally savings account is a strong option for many, offering a high APY and no minimum opening deposit or minimum balance requirement. Ally Bank could be especially useful for customers with multiple savings goals, as it allows savers to divide their deposits across up to 30 buckets. They can easily track their progress on each goal through a single dashboard.

>> Related: Read our review of Ally Bank.

**Data accurate at time of publication

Editor’s Note: Before making significant financial decisions, consider reviewing your options with someoneyou trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.