Great Online Bank with High Interest Rates
Ally is an online bank that offers great (if not the highest) interest rates among other online features for your internet banking needs.
Ally operates out of two offices in the United States, but has no physical branches anywhere. Ally uses this model of direct banking to help pass the savings onto their customers. Without having to pay for the overhead, upkeep, and payroll required to manage a functional physical location Ally is able to offer it’s customers some of the highest rates on savings and checking accounts. Ally works with ATMs across the US to provide customers with access to the funds in their accounts from almost any location.
Ally’s customers complete all of their banking transactions online. Through their website you are able to purchase certificates of deposit (CDs) and manage money market accounts. Ally’s high interest savings accounts are one of their most popular features. These accounts require no minimum balance and offer rates of up to .99% APR. These high yield savings accounts grow money even faster because the interest is compounded daily unlike many competitor banks. There are no monthly maintenance fees and you are allowed to complete unlimited deposits into the account with an additional six free transactions in a six month period.
Ally’s CD’s are another among some of the best currently available on the market. Ally currently offers a 1.05% APR on a 12 month high yield CD, 1.10% APR for 18 months, and a whopping 2.00% APR for 5 years. These APR yields are double, triple, and sometimes even five times the APR currently offered by the other big banks. Ally also offers an curious “No Penalty CD” that, as always, requires no minimum balance or deposit and boasts a .87% APR yield with no penalty to withdraw your funds. This is nearly five times what other banks offer, not to mention most banks do not even offer a no penalty CD like Ally.
Ally is both FDIC and CDIC insured allowing customers to sleep soundly knowing their funds are insured in both Canada and the United States. Ally was one of the banks that helped bail out other banks during the 2008 mortgage financial crisis.