Kiplinger’s Personal Finance, December 2009 issue, just announced that the Ally Bank Online Savings Account has been rated “Best Online Savings Account”.
This ranking recognizes the Best Bank Accounts that “combine higher yields and convenience.” Kiplinger’s chose to honor Ally Bank’s Online Savings Account because it requires “no minimum to open an account, no monthly fees and no minimum balance.”
They combine higher yields and convenience. A high-yield savings account at ALLY BANK, formerly GMAC Financial Services, yields 1.30% —far more than you’d get at most brick-and-mortar banks. And Ally Bank has no minimum to open an account, no monthly fees and no minimum balance. Plus, this FDIC-insured institution is one of the only online banks to offer penalty-free CDs, which give you the freedom to withdraw your money early without paying a fee.
{ 11 comments… read them below or add one }
I have an account with HSBC. Although ALLY has a slightly higher rate, I hate change
I assume you are happy with HSBC? You would be the 2nd to say and that’s great!
Interest rates continously move. So as long as my account can hold a competitive rate w/ great customer service, then there is no need to switch.
Maybe I’ll switch – it has to be better than Discover Bank, which has the worst user interface I’ve ever seen. Ever. For anything. Even in 1995 when I started using the internet. And ally has a better APR.
Really? I am surprised Discover Bank would be like that. I would consider them having a great user friendly site. 1995… seems so long ago.
Can you set up sub-accounts like you can at ING for numerous saving goals?
Hi SahmCFO,
Bob from Ally Bank says, “You can set up as many accounts as you would like under the same profile. You can nickname each account. One username and password will access all the accounts you are an owner on.”
Hope this helps.:)
Any reason to switch from ING?
Austin @ Foreigner’s Finances
Well now, I just saw a layout about ING in Forbes magazine. I was quite impressed with their service. So I would say ‘no’. The only chance I would say ‘yes’ would be the comparable interest rates. Unfortunately, at this time I do not have ING vs ALLY historical bank rates.
Hi,
Can you please suggest me where should open my new account. I am having my account in HSBC but they are deducting my savings.
Ally also provides access to competitive mortgage rates for Conventional, FHA and VA loans through http://www.gmacmortgage.com
Ally Bank supports Intuit Quicken and Microsoft Money through Web Connect. You can thus access the bank’s website and download your activity.
I’ve found out that the transfers among your Ally accounts and to and from your linked bank accounts are free, but you should also know that savings accounts and money market accounts are limited to six withdrawals per period by the government.
As you’ve mentioned in your post, Ally Bank charges no account maintenance fees and there is no minimum balance. If you exceed the six withdrawals mentioned above, Ally will charge a $10 fee. Cashier’s checks and wires carry an additional cost. A returned deposit item, if a check you send bounces or if you don’t have funds in an external account to cover a transfer, will cost $7.50.