At Ally Bank, New Balance Tiers but the Same Interest Rates

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On Nov. 7, Ally Bank launched a new tier structure for its savings accounts and certificates of deposit. But the bank did not graduate its interest rates, and at least for now is offering the same annual percentage yields for all balances.

Ally set the tiers for its savings products at balances under $5,000, between $5,000 and $24,999, and over $25,000. Unlike Ally’s interest checking account, which features two tiers, savings accounts and CDs with larger balances don’t yet qualify for higher rates.

“If rates eventually rise, balance tiers will provide Ally Bank with the flexibility to potentially offer customers a different rate based on account balance,” the bank wrote in a blog post last month.

Still, Ally does have some of the best rates on the market. Its online savings account currently has an APY of 1%, which is over 16 times higher than the national average of 0.06%. And Ally’s tiered structure further distinguishes the bank from other online-only institutions, as none of Capital One 360, Synchrony Bank nor Simple has a similar setup.

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