Ally Bank has long been a popular name in online savings, so readers sometimes ask me why it isn’t on our list of the best high-yield savings accounts.
It is a decent savings option, and it's convenient if you want to keep your savings and checking at one bank, as Ally also offers a checking account with no monthly fee.
But our best high-yield savings list highlights a limited number of accounts with the best combination of rates, fees, requirements and helpful features right now. As a result, well-known names in the high-yield savings space, like Ally, don’t always make our list.
We look for the best combination of features and rates
Some accounts advertise higher rates than Ally and still don’t make our list. It’s usually because they have some sharp limitations. For example:
- Pibank offers a 4.10% annual percentage yield with no monthly fee or minimum balance required. But you can only move money by wire transfer: There's no Zelle and no check deposits. And its iOS and Android apps receive low user ratings. Its overall banking experience doesn't measure up to other high-yield accounts we review.
- Andrews Federal Credit Union currently offers 5.00% APY on its Online Savings Account, but it’s only on the first $1,000. Above that, the rate drops sharply. A high rate doesn’t matter as much if it applies to only part of your balance. The more you save, the less that headline number means.
On the other hand, SoFi Checking and Savings pays a lower yield than both of those, but it doesn’t come with the same limitations. Its ongoing rate is 3.30% APY, though you do need to have a direct deposit in any amount, or receive $5,000 in deposits every 31 days to earn that yield. SoFi offers vaults (also called savings buckets) and a round-up program that sweeps debit card change into savings. Both can help you reach your savings goals. (It’s worth noting that Ally Bank offers similar programs.)
At the time of this writing, SoFi also offers a sign-up bonus and a short-term promotional rate that’s higher than the ongoing rate. (Check out NerdWallet’s list of the best bank bonuses and promotions for current offers.) This account has a history of making our high-yield savings roundup.
Capital One offers a rate that's on par with Ally’s. It's on the low end of our APY range, but among accounts hanging out there, it has broader name recognition and something many competitors don't have: branch access. That helps it stand out when other features are similar. The overall experience can be the difference between an account earning a spot on our best high-yield savings list and another missing it for the month.
Nerdy Perspective
When I look for a new savings account, the feature I care about most is not the rate. I make sure I get an account with a good rate, of course, but I prioritize how easily I can move money in and out of the account. And I always check that the bank’s customer service hours work for my West Coast life.
Ally Bank does offer a solid savings account
The Ally savings account pays a 3.00% annual percentage yield. There’s no monthly maintenance fee and no minimum balance is required, so you earn the same rate whether you keep $50 or $50,000 in the account.
But there are other accounts with no monthly fee or minimum balance requirement that currently offer higher rates. For example:
- Barclays Tiered Savings: 3.50% APY on balances below $250,000.
- E*TRADE Premium Savings: 3.75% standard APY.
- Marcus by Goldman Sachs Online Savings Account: 3.50% APY.
These accounts share Ally's basic benefits but pay more, and that difference adds up, especially on a large balance.
How to decide if Ally (or another bank not on our list) is right for you
If you have or are considering an Ally account — or another account that’s not on our list — you may wonder if you're missing out on money you could be earning from a higher yield. Use the savings calculator below to compare what different APYs would earn on your balance.
A $10,000 balance with a 3.50% rate earns an extra $50 in a year over what a 3.00% rate earns (with compounding, it earns about $355 in interest total vs about $304). It won’t make you rich, but it's extra money without extra work. I’d say if the difference was an extra $50 or more per year (assuming rates don’t change), it’s worth the switch.
If it’s less, weigh the extra interest you could earn against other features you’d give up. For example, Ally’s savings buckets let you divide your balance among up to 30 goals, such as an emergency fund or a new car, while earning the same 3.00% APY. Its round-up program can also help you save small amounts automatically. If you're choosing between Ally and a bank without those features, it's up to you to decide if it's worth it.
Beyond the rate and perks, check how available your funds will be. What are the ways you can move money in and out of the account and how quickly? Do you need a cash deposit option? Or same-day transfers? Not all the savings accounts that offer the highest yields will let you do those two things.
The best savings account isn’t necessarily the one with the highest APY. It’s one that pays a competitive rate, offers features you value and makes it easy to keep saving.
» Learn more in NerdWallet’s Ally Bank review: Checking, Savings and CDs
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» Want to dig deeper? Read about NerdWallet’s ratings methodology for banks and credit unions.
