What’s The Best Savings Account?

Here’s a bank that’s been in the news lately. GMAC Bank just recently changed their name to Ally Bank, as a way to revamp their image and improve their brand. They’re moving in the right direction by taking some positive steps and promising a good variety of banking products at very competitive rates, while making sure they provide strong customer service.

As far as being the best savings account around, I’d say that they can be a contender if they adhere to their mission, which is as follows: “We’re a bank that values integrity as much as deposits. A bank that will always be open, accountable, and honest. Yes, honest. We won’t deal in half-truths, kindatruths, or truths only buried in fine print. That’s because we don’t have anything to hide. We’re always going to give it to you straight.” They say so themselves that they do not like “sneaky disclaimers”.

With a very recent site relaunch, this bank is off to a fresh start by presenting various bank products with high rates in their specific categories:

Best Savings Account? The Ally Bank Online Savings Account

You’ll earn a higher rate than what’s offered by traditional savings products, and you’ll receive free online banking transactions when you sign up for an online savings account. Here are some of the account’s noteworthy features:

• The current APY is 1.55% (Updated 11/06/09).
• No minimum balance.
• No monthly fees.
• You can open an account with $0.
• You’ll earn daily compounded interest.
• Your account is insured and protected by the FDIC.
• You’re allowed six withdrawals or transfers per statement cycle at no cost. You’ll be charged a small fee for each transaction over the limit.

Ally Bank Certificates of Deposit

This bank has a couple of CD products to offer. The Classic CD has a 1.95% one year fixed APY (of course other terms are available from 3 months at 1.10% APY to 5 years at 3.10% APY). Your account is automatically renewed at maturity unless you tell the bank otherwise. There is a fee (penalty) if you make an early withdrawal, before your CD matures.

Now if you want to earn good rates but still have the flexibility to do an early withdrawal, you can consider Ally Bank’s No Penalty CD which provides a 1.49% 9 month fixed rate APY with no fee early withdrawal. It also renews automatically.

Both CDs can be opened with $0 and don’t have any monthly fees. Interest is compounded daily and the accounts are fully FDIC insured.

Ally Bank Money Market Account

Finally, there is the Ally Bank Money Market Account which provides the following features:

• The current APY is a reasonable 1.55%.
• You’ll receive a “check card” which you can use like an ATM or debit card. The check card and the first 50 checks you receive are free.
• No monthly fees.
• No minimum balance required.
• You can sign up with $0.
• No ATM fees. Ally Bank will also help defray a portion of any ATM fees you incur if you use another bank’s ATM.
• The interest you earn is compounded daily.
• Your account is fully FDIC insured.
• You’re allowed six withdrawals and transfers per statement cycle at no cost.

I can certainly say that some of the features I’m seeing here are much better than what I’ve reviewed at other banks.

In closing, I like what Ally Bank is promising its customers: they’ve got a commitment to security and to 24/7 customer service, and they also have a history of relatively attractive rates compared to their competition (see our list of high yield savings accounts). So if you’re shopping around for a new account, you may want to give Ally Bank a look.

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Categorized under: Banking & Money Management, Deals, Offers & Reviews