- Personal Finance
Ally Online Savings Account
Lately, you may have realized that your investments in stocks or real estate have taken quite a beating. Your money is just evaporating into thin air. In these cases, there are other places you can park your money while earning interest and have a guarantee that your money won’t disappear. That is of course, putting your money in an online savings account. An online savings account is different from that of a regular savings account. The interest rate of an online savings is usually much higher than a regular savings account. The only catch is that you have to do all your transactions online or over the phone. You can’t go to a real bank to do any transactions. If you are fine with that then an online savings account is the way to go.
One of the many savings accounts that offer a high interest rate is that of Ally online savings account. Ally online savings account is operated by Ally bank. Ally bank used to be GMAC bank but changed their name in order to distance themselves from General Motors. GMAC used to be part of GM but was spun off a few years ago and are now two completely different companies.
The good thing about an Ally online savings account is that you don’t need to make any initial deposit to open an account. As of writing this article, Ally is offering 1.29% APY. There is also no minimum balance and no annual fees. So basically this means you can take as much money as you want out or put as much money as you want in without worrying about fees. Ally bank is also FDIC insured, which means that your deposits are insured up to $250,000. If Ally bank were to fold one day, you won’t be out any money if less than or equal to $250,000. Once you open an Ally online savings account you can connect your current checking account to the Ally account and transfer money immediately. If your going to hold money in your checking account, you might as well put it into an account where you actually earn interest.