Ally Savings Review: A Deep, No Fee Lineup and a High APY

Ally Savings offers a competitive APY with almost no fees. The account is known for its convenience and access to the online bank's highly rated mobile app. This Ally Savings account review will help you uncover whether it's a fit for you.

Want a high APY no matter what your balance is? Ally Savings' APY matches that of some of our favorite savings accounts, and you can start with $0 and build your savings over time. Receiving your interest once a month from Ally will help.

This savings account has some definite perks, but there are also a couple of drawbacks. Here's what you need to know.

Top perks

4.25% APY: The Ally Savings account's APY is among the higher flat APYs we know of for the top online savings accounts.

No minimum balance: There's no minimum balance required to open an Ally Savings account.

No monthly maintenance fee: We don't think you should have to pay a fee to maintain an online savings account for routine needs. And Ally seems to agree as it does not charge one.

Savings buckets: The Ally Savings account lets you divide your money into up to 10 different savings buckets, each one nicknamed for the goal you're saving toward.

Mobile app: Ally's mobile app is feature rich, which is key for an online bank. Account holders can use the app to electronically deposit checks, make free electronic transfers, and pay bills.

FDIC insured: Ally Savings accounts are covered by the same FDIC insurance as traditional bank savings accounts. You're covered for as much as $250,000 per depositor, per institution, in the event of a bank failure.

24/7 customer service: Ally offers customer service by phone 24 hours a day, 7 days a week, and often with little or no wait times.

What could be improved

ATM access: It would be even more convenient to withdraw money from your savings account if Ally provided a free ATM card. This isn't a very common feature among online savings accounts, but some competitors offer ATM access.

Withdrawal limit fee: One downside is the withdrawal fee of $10 per transaction that kicks in after you make six withdrawals within one month. However, savers who rarely withdraw money from their savings account should be able to avoid this fee. Ally says on its site that it's temporarily refunding this fee due to changes in federal regulations. If you plan to make more than six withdrawals, your best bet is probably to check with Ally and see if they're still refunding this fee. However, it's important to point out that the six withdrawal limit is an industry standard for savings accounts (it is based on a federal law), so you should expect some variation of a penalty elsewhere.

READ MORE: What Is Regulation D?

Though Ally Bank doesn't have any physical branches, it still gives you several options for accessing your funds.

Deposit options

Here are your choices for depositing money into your Ally Savings account:

• Electronic transfers from external accounts or from another Ally Bank account
• Mobile check deposit
• Wire transfer
• Mailed check

Ally even offers free postage-paid deposit envelopes to help further reduce costs. But one thing it doesn't offer is the ability to make cash deposits. Most online savings accounts don't, but it's still worth noting, especially if you want that convenience.

Withdrawal options

When you need to withdraw money from your Ally Savings account, these are your options:

• Free electronic transfer
• Outgoing wire transfer
• Telephone transfer
• Physical check

Ally customers can contact the bank's customer service to request a physical check.

Ally's high-yield online savings account is laser-focused on what could be the right account perks for many savers. The bank pays a competitive APY, cuts pesky maintenance fees, and offers useful features like a robust mobile app and the ability to divide your funds into multiple savings buckets.

Keep reading about Ally Bank:

• Ally Spending Account
• Ally Money Market Account
• Ally High Yield CD

Our savings account methodology

At The Ascent, a Motley Fool Service, we rate savings accounts on a five-star scale (1 = poor, 5 = best). Our criteria? We dive deep into factors like APY, account minimums and fees, along with features that really make a difference -- think ATM access, linked checking accounts, or even branch access. We blend this with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best. Our aim is to maintain a balanced best-of list featuring top-scoring products from reputable brands offering competitive APYs and standout features.