Ally is the Best Online Bank for No Fee and High APY Savings Accounts

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There’s no better time to bank online.

For the second year, Ally was ranked the best online bank by personal finance magazine Kiplinger. Capital One 360, the online arm of Capital One, was the finalist. Ally was also named Best Bank for a “No Fee, No Hassle” experience for customers in their 20s and 30s, following their 2018 Best Bank for Millennials trophy.

Both Ally and Capital One offer a suite of attractive savings and investment accounts that help customers earn more on their money with no monthly fees and, in Ally’s case, with low minimum balance requirements. Additionally, their websites and associated mobile apps are easy to use, allowing customers to access their accounts anytime, anywhere.

Ally is an online-only bank with a wide range of products

A favorite among super savers and financial planners, Ally’s High Yield Savings Account pays a competitive annual percentage rate (APY) on as little as $1. Note that the APY on high yield savings at any bank is always subject to change in accordance with the federal funds rate. That doesn’t mean you shouldn’t buy high-yield savings when interest rates are low; only that you can’t expect the APY to stay the same for the lifetime of the account (and remember: it could go up!).

Ally also offers an interest-bearing money market account, a checking account, and a series of high-yield CDs for different terms, up to five years. A CD, or certificate of deposit, is a type of savings account with a fixed interest rate and a term ranging from three months to five years. You usually can’t access the money without penalty until the end of the term, but Ally also offers a penalty-free CD and a 2- or 4-year “raise your rate” CD, with the option to raise your rate during the term.

You can also invest in mutual funds, ETFs, stocks and bonds through Ally’s Autonomous Trading Option or a professionally managed wallet with a minimum initial deposit of $100.

Online-only banking does not operate bricks and mortar, but that is not a problem. Savings account customers can withdraw for free from 43,000 in-network ATMs in the United States, and Ally reimburses up to $10 in ATM fees per statement cycle for an out-of-network ATM. You can also link your Ally account to five

digital payment

apps, including

Pay Apple

and Google Pay. The only thing you cannot do is deposit money.

Capital One has the physical locations that Ally does not

Finalist Capital One offers a solid checking account, with varying levels of interest on balances under $50,000 and balances up to $100,000. The bank also offers a competitive offer in the field of high-yield savings.

Capital One offers the best of both worlds – virtual and otherwise. The bank has an easy-to-use website and mobile app and approximately 500 physical branches in the United States, as well as more than two dozen Capital One cafes, where customers can deposit and withdraw cash. money, have a cup of coffee, sit on a sofa, and, if they wish, get free coaching from professionals to solve their money problems.

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David A. Albanese