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  • Ally’s money market account comes with paper checks and a debit card, making it easier for you to access your money than with a high-yield savings account.
  • A money market account is good if you want easy access to your money like you’d get in a checking account, but with interest rates that are closer to high-yield savings.
  • Ally doesn’t charge a monthly service fee, and it doesn’t require an initial deposit or minimum account balance. It may be a good fit for savers who don’t mind banking digitally and want to open all their accounts with one institution.
  • You may like the Ally money market account if you already bank with and like Ally, but if you’re open to banking elsewhere, you can find higher interest rates on a money market account with another bank.
  • See Business Insider’s picks for the best money market accounts »

Ally Financial is a bank that operates entirely online, providing loans, CDs, and checking and savings accounts. The Ally Money Market Account gives customers quick access to their money and an easy-to-use online interface.

A money market account is similar to a high-yield savings account. Both accounts are good places to store your savings, both pay variable interest rates, and federal law requires both to limit customers to six transactions per month.

The main difference between the two is that money market accounts typically provide easier access to your money than high-yield savings accounts. Many banks’ money market accounts come with paper checks, a debit card, or both. A money market account is good if you want to be able to access your money like you would with a checking account, but you also want the competitive rates closer to those you’d get with a high-yield savings account.

Ally provides you with both checks and a card when you set up a money market account, whereas its high-yield savings account comes with neither. This could make a money market account a more convenient place to store your emergency fund than a savings account, because you can tap into your savings if you need money fast.

APY

0.75% on all balance tiers

  • Details
  • Pros & Cons

    • 24/7 support
    • No monthly maintenance fees or minimum balance requirements
    • Your money earns money with interest compounded daily
    • Limit of 6 withdrawals per statement cycle
    • Access to checks and a debit card
    Pros
    • No opening deposit or minimum account balance
    • No monthly service fee
    • Access to a debit card
    • Access to paper checks
    • Out-of-network ATM reimbursements of up to $10 per month
    • 24/7 customer service
    • Easy-to-use mobile app
    • Link to other Ally bank accounts
    Cons
    • Not the highest money market account APY
    • No physical branch locations
    • $10 excess transaction fee


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    Should you open an Ally money market account?

    If you already bank with and like Ally, the Ally Money Market Account could be a good fit. However, if you’re open to or are already using another bank, you can find a higher interest rate on a different money market account that also offers easy access to your money.

    However, despite its unremarkable interest rate, an Ally Money Market Account includes many of Ally’s best features: no opening deposit or minimum account balance (you will need to put money in the account to start earning interest, though) , zero monthly fees, 24/7 customer support, and a clean online interface.

    Some banks pay higher interest rates for larger account balances, but Ally pays every member the same rate.

    Money market accounts are known for making it simple for customers to retrieve their savings, and Ally helps you access your funds by sending you a debit card and paper checks when you set up your account.

    Finally, an Ally Money Market Account is good for savers who don’t mind doing all their banking digitally. Ally doesn’t have any physical branch locations, so you’ll do all your banking online, through the app, and over the phone. Ally has strong customer support and an easy-to-use website and app, so if you’re looking for a digital bank, Ally is a good option.

    The pros of an Ally Money Market Account

    There’s no required opening deposit or minimum account balance

    Ally does not require an initial deposit to open a money market account, and there’s no mandatory minimum account balance. However, you will need to put money into your account to start earning interest.

    There’s no monthly service fee

    You won’t pay a monthly fee to keep your money in an Ally money market account. Some banks charge a monthly fee but allow you to avoid paying by maintaining a minimum account balance. Ally doesn’t make you jump through any hoops — no one has to pay a service charge.

    You have access to a debit card and paper checks

    The main advantage of a money market account over a high-yield savings account is that your money is more accessible. Federal law limits you to six transactions per month with either type of account, but when the time does come to make a transaction, it’s usually easier to do so with a money market account than with a savings account.

    Ally provides you with a debit card and paper checks when you open a money market account. The Ally High Yield Savings Accountdoesn’t come with a card or checks. 

    Some competing banks offer both checks and cards, while others might provide just one or the other, or neither.

    You’ll be reimbursed up to $10 per month for out-of-network ATM fees

    Federal law only allows you to withdraw money from your money market account up to six times per month, regardless of which institution you bank with. But if you do want to withdraw cash from your money market account, Ally makes it affordable to do so.

    As an Ally customer, you have free access to over 43,000 Allpoint® ATMs across the United States. Ally won’t charge a fee if you use an ATM outside of this network, but the ATM provider might. If you are charged by the ATM provider, Ally will reimburse you up to $10 per month in ATM fees.

    You have access to 24/7 customer service

    Ally customer support is available at all times. You can call a representative or chat with a real person online or through your app.

    The mobile app is easy to use

    Ally’s app has received positive reviews for being useful and simple to navigate. You can use your app to do everything from deposit a check to locate the closest in-network ATM.

    You can set up other bank accounts with Ally

    Ally also provides a checking accounthigh-yield savings account, and a variety of certificates of deposit. This bank is convenient for people who want to do all their banking with one institution, although the money market account is especially useful for people who don’t have a checking account with Ally.

    Ally offers a decent APY

    You’ll earn 0.75% APY on the funds in your money market account, which is higher than what you’ll find with many banking institutions.

    The cons of an Ally Money Market Account

    You can find a higher APY at another bank or with an Ally high-yield savings account

    While Ally’s 0.75% APY is decent, you can find higher rates at other institutions. The Ally High Yield Savings Account pays 1.50% APY. If you don’t mind not having paper checks or a debit card, you may prefer to open an Ally savings account so you can earn more in interest. 

    You can order a debit card and checks when you open an Ally checking account. If you open both a savings and checking account with Ally, you could simply transfer funds from savings to checking through the online portal when you need funds from your savings account.

    If you like the idea of banking with Ally but want a higher rate, opening a savings and checking account could be a better option.

    There are no physical locations

    If you prefer face-to-face banking, Ally might not be for you. There are no physical branch locations, so you’ll do all your banking through the app, online, or over the phone.

    You’ll pay a $10 excess transaction fee

    Federal law limits you to withdrawing money from a savings or money market account up to six times per month, regardless of which institution you bank with. If you exceed this limit, you’ll be penalized.

    Ally charges a $10 excess transaction fee. Although this isn’t uncommon, some banks don’t charge a fee — they have a rule that if you exceed the transaction limit a certain number of times per year, they’ll close your account.

    You may find Ally’s fee annoying if you only surpass six monthly transactions once or twice in a year, because you might not face any penalties for one or two slip-ups at other banks.

    Ally money market account features

    Setting up the Ally Money Market Account online is relatively quick and easy. It will take a few business days for any money you transfer from an external bank account to show up in your Ally account.

    When you set up an Ally money market account, you’ll receive a debit card and paper checks, making it simple to access your savings when necessary. You can use your debit card for free at over 43,000 Allpoint® ATMs, and if an out-of-network ATM charges you a fee, Ally will reimburse you up to $10 per month.

    You don’t need to make an initial deposit to open your money market account. Ally doesn’t require a minimum balance, and it doesn’t charge a monthly service fee.

    Every member receives a 0.75% APY, which is compounded daily and paid monthly. Over time, the interest rate will increase or decrease along with the federal funds rate, but this is the case with all money market accounts. You may like the Ally Money Market Account if you already bank with Ally and have had a positive experience, but if the interest rate is a big priority for you, then you can find higher rates elsewhere.

    Individual Ally accounts are FDIC insured for up to $250,000, and joint accounts are insured for up to $500,000.

    How Ally compares to similar money market accounts

    Ally vs. Synchrony

    Ally and Synchrony are both online banks, and neither requires an initial deposit to open a money market account. Both banks send you a debit card and paper checks when you set up your account.

    Both companies reimburse ATM fees charged by out-of-network ATM providers; Ally refunds up to $10 per month, and Synchrony refunds up to $5 per month. If you think you’ll use out-of-network ATMs frequently, you may prefer Ally.

    Synchrony’s APY is a bit higher than Ally’s, so if rate is important, you might prefer Synchrony over Ally. However, if interest is a big priority, you can find higher rates at banks other than Synchrony, too.

    Ally vs. CIT Bank

    Like Ally, CIT Bank is an online banking institution. Neither bank requires an opening deposit for a money market account, and neither charges a monthly fee.

    CIT Bank pays a higher interest rate than Ally. If earning interest is important to you, CIT Bank is one of your best options for a money market account.

    CIT Bank doesn’t provide you with paper checks or a debit card. However, it still makes accessing your money somewhat easy by connecting your money market account with PayPal and Zelle.

    If you make a lot of payments digitally, you may like CIT Bank, but if you prefer checks or a debit card, you might like Ally. If you plan to keep your emergency fund in your money market account, it might be more practical to have access to checks and a debit card than Zelle or PayPal.

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