3 Reasons I Switched to an Ally Savings Account

A few years ago, I found myself sorely in need of a new savings account. I was just starting out as a freelancer, and I knew I'd need to pay income taxes every quarter, lest I be penalized by the IRS and my state government's taxation department. And since I also wanted to earn interest on that tax money (more on this below), opting for a savings account with an online bank was a solidly good idea.

Here's why I opened an Ally Savings account -- and why you may want to do the same.

1. High APY

Admittedly, at the time I opened my Ally Savings account, its APY wasn't as high as it eventually became thanks to repeated Federal Reserve rate hikes -- as the Fed raised the federal funds rate in 2022 and 2023, savings account APYs followed suit. But in all that time, the APY on my big-bank savings account remained a paltry 0.01%, so I was excited to earn more with Ally.

My Ally Savings account's APY topped 4% at the height of higher bank account rates, and as of this writing, remains 3.80%. I expect this rate to slip back down to Earth as we see additional federal funds rate cuts over the end of 2024 and into 2025.

But it should still handily beat my big bank's rate (not to mention the average rate across all savings accounts, which is currently 0.41%). Ally is an online bank, and doesn't have the overhead costs of maintaining bank branches, meaning it can pass those savings on to customers.

Ready to explore your savings account options? Click here for our favorite high-yield savings accounts and beat inflation.

2. Savings buckets

This is my favorite Ally Savings feature -- yes, I even appreciate it more than the high APY on the account. Having money saved beyond just a few hundred dollars (or perhaps a few thousand dollars, if I was lucky and was gearing up to move house yet again) is a new development in my life -- it's only been two years that I've had real savings. Using the Ally Savings account has helped me create goals for my money.

Ally Savings offers Savings Buckets, so you can create sub-accounts within your main Ally account. I have more than 10 buckets active right now, to save money for my quarterly tax payments, my emergency fund, my cats' vet visits, my own dental work, a new living room TV, and more. I can set individual goals for my savings buckets, and I get emails from Ally when I meet them, which is very motivating.

3. Excellent mobile app

Finally, Ally's fantastic mobile app was a factor in me choosing this online bank. Since I can't visit an Ally bank branch (they don't exist!), it's important that Ally's mobile app be as useful as possible.

I can view my account balances, of course -- but I can also pay bills, transfer money, deposit checks, and even make a debt payoff plan. Ally's mobile app is also updated regularly, which makes me feel confident that security issues are being addressed and the app is always improving.

Is it time for you to switch banks?

If you're getting annoyed with a low interest rate on your savings, having difficulty setting goals for your money, or struggling with a user-unfriendly mobile app, yes -- you should look into switching banks.

And if it's a high-yield savings account you're seeking specifically, I recommend considering Ally Savings. (And hey, this bank's online checking and investment accounts are also worth considering, FYI.)