Ally Bank Savings Account Review

allyreview_logoI’ve banked with Ally for years (checking, savings, and multiple CDs), but I’ve never done a specific review of their savings account until now. Ally has recently raised their rates to be closer to the rotating list of banks jockeying for top spot.

The Ally Online Savings Account has no minimum balance, no monthly fees, and currently pays 0.99% APY (as of 12.19.14). Their interest rates may not be the absolute highest, but they have consistently been within 0.10% of the temporarily top banks, making it not worthwhile to move my money. (See my rate chaser calculator). Let’s go through the important factors.

User Interface. Below is a screenshot of the main page after logging in (click to enlarge). I can see all of my accounts and their balances at a glance. The overall design is clean and practical (with a good dose of purple).

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Customer Service. Ally Bank differentiates itself with their customer service. First of all, they are available 24/7 at 1-877-247-ALLY (2559). When you use their smartphone app or log into their website, you can see the wait time beforehand. Even better, if you don’t want to call them you can just use their Live Chat feature. I have highlighted these with red arrows on the screenshot above.

Awards. Ally Bank has won “Best Online Bank” from Kiplinger’s Personal Finance magazine in 2014 and “Best Online Bank” from Money Magazine from 2011-2014.

FDIC Insurance. Ally Bank is a member of the Federal Deposit Insurance Corporation, FDIC Certificate #57803. As with other FDIC-insured banks, this means your Ally deposits are insured by the FDIC up to $250,000 per depositor, for each account ownership category.

Funds Transfers. With no physical branches, online savings accounts should have maximum flexibility as they are often secondary accounts (given most megabank checking accounts pay either no interest or a sad 0.01% APY). Ally Bank allows you to link any other external bank account using the standard routing number and account numbers. As long as you initiate the transfer before 7:30 pm Eastern Time, the transfer will take 2 business days. You can link up to 20 different accounts (it used to be unlimited; but other banks limit to 3; I have 7 myself).

So if I initiate a transfer on Monday afternoon by 7:30pm ET, the money will be debited first thing on Tuesday, and credited to the destination account first thing Wednesday. But know that if you initiate on a Saturday, you’ll get the same result. Even bank computers really don’t like working weekends, it seems. Overall, free transfers within 2 business days during the week is about as good as it gets for online banks.

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The transfer limits are also relatively high. On my accounts, I see that I have a $150,000 daily limit outbound and $250,000 daily limit inbound, with a total monthly limit of $600,000 outbound and $1,000,000 inbound. Keeping in mind that all savings accounts from any bank are limited to six withdrawals per month.

Mobile check deposit. You can use the Ally smartphone app to deposit checks using your smartphone camera. (This is in addition to using your computer scanner and/or free postage-paid deposit envelopes.) I’m not sure if this is the same for everyone, but my deposit limit is $50,000 which is higher than many other electronic deposit programs. I’ve used the app to deposit multiple checks without issue. Screenshot below.

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Mobile app. Let’s see, other comments about the app (iOS and Android)… you can do all the important stuff – see transactions, transfer funds, deposit checks, pay bills. It can remember your username, but you must type in your password every time. I usually just use my Mint app for checking balances, as that only requires a 4-digit PIN. The overall design is acceptable, and the ATM locator includes places like Safeway stores that offer “cash back with purchase”. (If you have the Ally Checking account, you get free ATM fee rebates so the locator is handy as you can just use the nearest ATM.)

The Stats

  • Current interest rate: 0.99% APY (last checked 12/18/2014)
  • Interest Compounding: accrued daily, compounded daily, credited monthly
  • Minimum to open: $0
  • Minimum requirements to avoid monthly service charge: None
  • Number of external bank account links allowed: Unlimited
  • Routing Number: 124003116

Bottom line. The Ally Online Savings Account is a solid offering with with no monthly fees, no minimum balance requirement, and a historically competitive interest rate. I like that their brand is built around the “no hidden fees” slogan. Additional features like a flexible funds transfer system and solid 24/7 customer service help differentiate themselves from the competition.

You can use this savings account either as a complement to your local bank, but I really like how it works with the Ally Checking account which offers unlimited ATM fee rebates, free online billpay, and the ability to use the savings account as a free overdraft source. Ally also has certificates of deposit which offer competitive rates at times.

Obihai FREE Monthly Home Phone Service; Get Started For $29.99

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Updated: $29.99 with free shipping (40% off) for a limited-time. If you still have landline phone service and are looking for a cheaper alternative, Obihai is officially supported by Google:

Obihai is excited to announce official support for Google Voice. With a Google Voice account and a companion OBi device you can make and receive VoIP calls on a regular telephone. To get started, just login to the OBiTALK website, add your OBi device and select Google Voice as your service. You’ll then confirm your account with Google, and within minutes, you will be making and receiving calls from the comfort and convenience of your home phone.

An Obihai VoIP phone adapter is a little box that will allow you to plug in any standard landline telephone and use Google Voice to make free phone calls within the US and Canada. You can also make cheap international calls starting at 1 cent a minute.

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It’s tough to beat under 50 bucks upfront and no ongoing monthly fees for unlimited home phone service. I bought one earlier this year – check out my OBi200 Adapter + Google Voice Installation Review.

Obihai is running a holiday promotion where you can get a Obihai OBi200 VoIP Telephone Adapter from NewEgg for only $29.99 with free shipping from December 18th to December 21st, or until supplies last. Retail price is $49.99.

You must use promo code EMCWHWB45.

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