Banking

Item: Chime
Rating: 4.8
Author: Rob Berger

Best Checking Accounts in 2020

August 1, 2020 by Rob Berger Leave a Comment

A good checking account is the lifeblood of a personal finance system. It’s where paychecks get deposited and serves as our spending account. In this article we’ll look at some of the best checking accounts available today.

To find the best checking account for your specific needs, consider the following factors:

Fees
Mobile check deposit
Mobile app and website that are easy to use
Overdraft protection
Free ATMs

Based on these and other factors, here are my top picks for the best checking accounts.

Traditional Checking Accounts

I prefer to have my checking account at a bank with branches near my home or work (preferably both). They won’t pay much in interest, but you can find checking accounts with minimal fees. And some pay out a nice bonus to new customers.

Here are my top picks:

Citibank

I’ve banked at Citi for three decades. They have branches everywhere, and free ATMs in every 7-Eleven. I’m also a big fan of the Citi Double Cash card.

In terms of checking accounts, here are details:

Up to $700 signup bonus. Details can be found here.
No fees for using Citi ATMs and no Citi fees for using non-Citi ATMs
Earn Citi ThankYou Points
There is a monthly service fee, but it can be waived with certain banking activity or minimum balances.
Earn cash by referring friends

Chase

While Chase doesn’t have as many locations as Citi, it’s a great option if branches are available where you live. And its credit cards are some of the best.

Earn hundreds of dollars in signup bonuses. Get details here.
Free ATMs at Chase branches.
A monthly service fee can we waived fairly easily.
Use the Chase Mobile app to manage accounts, deposit checks and transfer money.

PNC Bank

PNC offers excellent digital tools with its Virtual Wallet. The app brings together accounts for spending, savings and growth.

Signup bonuses for new customers. Get details here.
Excellent app–Virtual Wallet
Track and pay your bills
Create a budget
Automate your savings
Create savings goal

U.S. Bank

U.S. Bank offers several checking packages with signup bonuses.

Easy Checking account costs just $6.95 a month, and the fee can be waived easily
U.S. Bank Visa debit card
Student checking available
Branches in more than 25 states

Online Checking Accounts

I prefer traditional banking for my checking account. But there are several online only options that offer excellent checking accounts. These accounts usually charge no fees, many offer excellent interest rates, and they offer useful mobile apps and tools.

Chime

Chime is one of several Fintech companies that offers an excellent mobile app, Visa debit card, and FDIC-insured checking and savings accounts.

No minimum deposit required
No minimum balance required
No monthly fees
Free ATMs
Excellent mobile app

Aspiration

Aspiration offers two levels of accounts, one free and one for a small monthly fee.

Aspiration basic account is free. Get a debt Mastercard with 55,000 free ATMs.
Aspiration Plus costs $3.99 a month. You get 10% cash back on “Conscience Coalition purchases and a competitive interest rate on savings accounts.

Simple

Another Fintech banking app, Simple recently increased its interest rate on its savings account. Its checking account is free and comes with a rich set of features.

Online checking account with Visa debit card
Mobile check deposit
Budgeting app
Transfer money with friends
Send paper checks
High-yield savings account

Capital One

Capital One is a hybrid. It’s a traditional brink- and mortar bank that purchased an online bank (ING Direct) many years ago. It rebranded ING Direct to Capital One360. Today, the bank operates as a single entity, so you get the benefits of physical branches and the features of an online bank.

Here are the details of Capital One 360 Checking:

No monthly fee
Mobile app
40,000 fee-free ATMs
No minimums
Online bill pay
Mobile check deposit

Axos

Axos is an online bank with a wide range of products and features. It offers both personal and business accounts. Here are the details on its personal checking account:

4 types of checking accounts:
- Essential Checking: Basic checking with unlimited ATM fee reimbursements.
- Rewards Checking: 1.25% APY and no maintenance fees.
- CashBack Checking: 1.00% cash back on all signature transactions
- Golden Checking (Age 55+): 0.20% APY on all balances, free personal checks, mo maintenances fees.
Refer-a-friend bonus

Varo

Our final Fintech option, Varo offers checking and savings accounts with no fees and excellent features. Here are the details:

Free Visa debit card
No monthly fees
Open account online
Manage money on your smartphone
Get paid up to two days early with direct deposit
Lock your card with the mobile app

Chime Review–A No Fee Banking Alternative

July 23, 2020 by Rob Berger Leave a Comment

Chime is one of several new Fintech companies trying to change the way we bank. It offers a slick mobile app, low fees, and a competitive interest rate. But is it a good option as an alternative to or in addition to your existing bank account. We’ll answer that question and more in this Chime review.

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I embraced online banking when it first became a thing more than a decade ago. It started the ING Direct and the Orange Account. Since then I’ve held accounts at many online banks, including CIT Bank, Ally Bank, American Express Bank, and Capital One. Chime is different.

For starters, it’s not a bank. It’s an app that offers bank accounts through partner FDIC-insured banks.The idea was to take great technology, pair it with traditional banking, and then take over the financial industry. Let’s dig into the details to see what it offers, how much it costs, and whether it’s right for you.

In this Chime Review

Snapshot

Virtually no fees
Competitive interest rates
Award-winning mobile app
Credit builder account
Free ATM withdrawals
FDIC Insured

Learn More

Minimum Opening Deposit	$0
Minimum Balance Required	$0
Monthly Fee	$0
Savings Account APY	1.00%
Free ATM Access	Yes, at more than 38,000 fee-free ATMS nationwide
Joint Accounts	No
FDIC Insured	Yes. Deposits are FDIC insured up to $250,000 through The Bancorp Bank; Member FDIC.

How Does Chime Work?

Opening an Account

You can open an account online using this link. You’ll need to provide the typical information you would for opening any bank account. This information includes your address, mobile telephone number, and your social security number. To qualify, you must be a U.S. citizen and at least 18 years old.

The process takes just a few minutes. Once approved, you then decide what types of accounts you want. It’s pretty simple since there are only two:

Spending Account—What most people think of as a checking account. If you set up direct deposit, see below, your paycheck will go into this account.
Savings Account—It currently pays 1.00% APY in interest.

Setup Direct Deposit

Next you’ll want to setup direct deposit of your paycheck or government assistance check. To do so you’ll need two numbers—the routing number and your account number. The routing number is a unique number that identifies the bank where the direct deposit should be made. The account number is the unique number that identifies your specific Spending Account.

Finding the routing number and your account number is easy:

Log into your account online or via the Chime mobile app;
Go to the “Move Money” section of your account and select “Direct Deposit;”
There you’ll find both the routing number and your Spending Account Number.

Bank Account Options

As noted above, Chime comes with two account types: a Spending Account and a Savings Account. The Spending Account includes a Visa debit card that also serves as your ATM card.

Spending Account

The Spending Account is your checking account. There are no overdraft fees, monthly fees or minimums with this account. There are also no foreign transaction fees.

How do you deposit money into your Chime account?

There are several ways you can add money to your Spending Account:

Direct Deposit: (see above)
Transfers: Using your routing number and account number, you can transfer funds from another bank into your Chime Spending Account.
Deposit Cash: You can deposit cash to your Spending Account at over 90,000 retail locations via Green Dot. You can deposit up to $1,000 in cash every 24 hours or $10,000 per month. There will be a fee for this service, which can vary by location.
Mobile Check Deposit: If you are enrolled in direct deposit of $200 or more a month, you can deposit a check via the mobile app. Once you meet the direct deposit requirement, mobile check depositing will be automatically added in your Chime app in 30 days.

How do you spend or withdrawal money from your Chime account?

There are several ways to use the money in your Chime account:

Visa Debit Card: You can use the debit card anywhere that accepts Visa, including online.
ATM: With your Visa debit card, you can withdrawal cash at an ATM.
Bill Pay: You can set up direct pay to a creditor using your routing and account number.
Chime Checkbook: While checks aren’t as common as they once were, sometimes you need them. You can log into your account and request that Chime send a check anywhere in the U.S. for up to $5,000.

The Spending Account works with mobile payment platroms including Apple Pay and Google Pay.

Savings Account

With the Savings Account you earn 1.00% APY. That’s a competitive rate as compared to the best online savings accounts. There are no fees on this account and no minimum balance. The APY is also not capped at a certain balance.

Chime offers several ways to automate your savings:

Round Ups: Chime will roundup transactions on the Chime debit card to the nearest dollar and transfer this amount from your Spending Account to your Savings Account.
Save When I Get Paid: You can set up a recurring automatic transfer of a percentage of your paycheck from your Spending Account to your Savings Account.

Chime Credit Builder Visa Secured Credit Card

Chime has recently introduced it’s first credit card. It’s a secured card designed to help Chime members build their credit. Because it’s a secured card, there is no credit check to apply. Unlike most secured cards, there are no annual fees for the card and no interest charges.

Chime reports your credit activities from the card to the three major credit bureaus—TransUnion, Experian and Equifax. There’s no minimum security deposit required. You decide how much to transfer from your Spending Account to your secured account as collateral for the card. That becomes your limit. You can then use this money to pay for your charges at the end of the month.

Features & Benefits

Visa Debit Card

The Chime Spending Account comes with a Visa debit card. The card can be used anywhere that accepts Visa, including online. It also serves as your ATM card.

Free ATM Withdrawals

Chime has over 38,000 fee-free ATMs nationwide. They work with both MoneyPass and Visa Plus Alliance networks. You can withdrawal from either network for free. Keep in mind that free ATMs are located only in the United States. If you travel outside the country, you will be charged for using an ATM.

If you use an ATM outside of these networks, the cost is $2.50 plus anything the ATM owner charges. Also keep in mind that there is a $500 a day limit on ATM withdrawals. Also keep in mind that there is a daily limit on card usage (whether purchases, ATM withdrawals, over-the-counter withdrawals) of $2,500.

Get Paid 2 Days Early

If you set up direct deposit, you can get paid up to two days early. Here’s how Chime describes this feature.

¹ Early access to direct deposit funds depends on timing of payer’s submission of deposits. We generally post such deposits on the day they are received which may be up to 2 days earlier than the payer’s scheduled payment date.

SpotMe

SpotMe is Chime’s fee-free overdraft protection. To qualify, you must set up direct deposit of at least $500 a month. Chime determines the limits of SpotMe per customer based on account activity and history. The limit starts at $20 but can go up to $100 or more. If a transaction would overdraw your account above this limit, it will be declined.

Any SpotMe overdrafts are repaid automatically with your next direct deposit. Here’s how Chime describes the SpotMe feature

*Chime SpotMe is an optional, no fee service that requires you receive $500 in direct deposits a month to qualify to overdraw your account up to $20 on debit card purchases. Chime, in its sole discretion, may allow you to overdraw your account up to $100 or more based on your Chime Account history, direct deposit history and amount, spending activity and other risk-based factors. Your Limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your Limit. Your Limit may be increased or lowered at any time by Chime.

Mobile Banking

With the Chime mobile app, you can track your spending and savings. You can also send or receive money from friends. It works on both iPhone and Android devices. The app enables you to deposit checks and pay bills.

Alerts are built into the app. It can send you daily bank account balance notifications and instant transaction alerts when you use your debit card.

Security

You can instantly disable your debit card via the mobile app. You can also allow or disallow international transactions.

Support

Rates & Fees

There are virtually no fees for banking with Chime. There is a $2.50 fee for out of network ATM usage. The Savings Account currently pays 1.00% APY.

Pros & Cons

What we like

Excellent mobile experience
Virtually no fees
Competitive APY on the Savings Account
Credit builder account available
No overdraft fees and free overdraft protection

What could be better

It doesn’t have branches. Of course, neither do any of the online banks.
It doesn’t offer CDs.

Chime Rating

Chime

Rob Berger

Features

Fees

Rates

Mobile App

Customer Service

Summary

Chime offers low fee Checking and Savings accounts, with competitive interest rates.

4.8

FAQs

Is the Chime debit card a prepaid card?

No. It is a debit ATM card. If you are interest in a prepaid card, you can check out our list of the best options here.

Does it offer free ATM withdrawals?

Yes, at more than 38,000 ATM locations nationwide.

How can I add money to my account?

Several ways, including direct deposit, mobile check deposit, bank transfer, and cash deposits at certain retailers using Green Dot.

Is Chime a Bank?

No, but deposits are held at one of two FDIC-insured partner banks.

Compare Chime Alternatives

There are other options to consider for those looking for a low cost online banking experience. There are other Fintech options, such as Aspiration, Simple and Varo. Think of these as digital bank apps. You could also consider online banks, most of which charge little in fees and offer competitive interest rates. If a checking account is your primary goal, however, it’s hard to beat Chime.

Final Thoughts

Chime offers virtually no fee checking and savings accounts. Its mobile app is excellent, and its list of features make it an ideal banking option. To learn more and open an account, visit Chime.

The Best CD Rates July 2020

July 20, 2020 by Rob Berger Leave a Comment

Certificates of Deposits offer a safe way to save money. Whether for an emergency fund, to buy a home or liquidity during retirement, term CDs can also offer higher yields than savings accounts (although not always). Here we cover the best CD rates available nationwide.

CD Rates

Best 1 Year CD Rates

The 1-year CD terms is one of the most popular for savers. Here are some of the best rates available for 12-month terms.

Bank	APY	Minimum Deposit	Early Withdrawl Penalty
Comenity Direct	1.00%	$1,500	180 days interest
CFG Bank	0.95%	$500	Yes
Marcus	1.10%	$500	270 days interest
Live Oak Bank	0.70%	$2,500	120 days interest
Synchrony Bank	0.90%	$2,000	90 days interest
CIT Bank	0.75%	$1,000	Yes

Best CD Rates Overall

CFG Bank

Many have never heard of CFG Bank. Headquartered outside of Baltimore, MD, the bank was founded in 1997 as AmericasBank (FDIC # 34294). CFG is a community bank, meaning it’s locally owned and operated.

CIT Bank

CIT Bank is one of our favorites. It tends to offer some of the best rates on deposit accounts, including CDs. In addition to the high-yield CDs below, it also offers Ramp Up CDs, Jumbo CDs, and a no-penalty CD.

BMO Harris Bank

BMO offers competitive yields on CDs. That said, its rates have come down sharply along with other banks over the last month. We’ve also seen a flattening of rates, with terms ranging from 6 to 18 months offering the same rates, and two to four years also offering the same rates.

Ally Bank

Ally offers several types of certificates of deposit: high-yield CDs, Raise Your Rate CDs, and a no-penalty CD. There are no monthly maintenance fees and no minimum deposit requirement. However, the amount of your deposit can affect the interest rate you’ll receive (see rates below)

Marcus by Goldman Sachs

Marcus by Goldman Sachs offers some of the highest yields on CDs available today. In addition to high-yield certificates of deposit, the bank offers a no-penalty CD.

Comenity Direct

Comenity Direct is one bank many have never heard of. A brand of Comenity Capital Bank headquartered in Draper, UT, it was established in 2003 as World Financial Capital Bank. It’s FDIC-insured (Certificate # 57570) and offers some of the best CD yields available in the country.

CD Interest Calculator

Best Online Banks July 2020

July 19, 2020 by Rob Berger Leave a Comment

Internet-only banks have grown in popularity. By offering the best interest rates and no fees, savers have poured billions of dollars into financial institutions with no branches. To help you navigate this new world, we’ve assembled this list of the best online banks for your money.

Best Online Bank Listing

Best Full-Service Online Banks

These full-service online banks could serve as your only financial institution. In addition to savings and CD accounts, they offer checking accounts and other services that can accommodate most banking needs.

Ally Bank

Ally Bank is arguably the best all-around online bank. It offers every bank account type, auto and home loans, and investing services. It could serve as a place to park your cash for higher rates, which is how we use it, or as your primary bank. Its website and mobile app are very easy to use.

Account Types: Savings, Checking, Money Market, High-Yield CD, Raise Your Rate CD, No Penalty CD, IRA Savings, IRA CDs
Savings APY: 1.00
CD Terms: 3 to 60 months
Bank Branches: No
Free ATMs: Yes–Allpoint Network and Ally reimburses up to $10 a month in fees charged by other ATMs.
Other Financial Services: Home loans, auto loans, investing
FDIC Certificate No.: 57803
Free Credit Score: Free FICO score access with auto loan
Credit Inquiry: Soft pull
Year Established: 2004
Other Features: Zelle, bill pay, mobile deposit

CIT Bank

Having opened a savings account at CIT Bank several years ago, I can tell you two things about this financial institution. First, it tends to pay some of the highest rates available on deposit accounts. Second, its website could be better. It was easy to use but not as polished as I would have liked. Still, I go to banks for their rates, not a fancy website.

Account Types: Savings, Checking, Money Market, Savings Builder, CDs, No Penalty CDs, Jumbo CDS, Rampup CDs
Savings APY: 0.95
CD Terms: 12 to 60 months
Bank Branches: Limited
Free ATMs: Yes–CIT Bank doesn’t charge ATM fees and reimburses up to $15/month in other bank’s ATM fees.
Other Financial Services: Home loans
FDIC Certificate No.: 58978
Free Credit Score: No
Credit Inquiry: Soft pull
Year Established: 2009 as OneWest Bank, FSB, and changed its name to CIT Bank on August 3, 2015.
Other Features: Zelle, bill pay, mobile deposit

Discover Bank

Best known for its credit cards, Discover Bank also offers a full range of deposit accounts. Its rates are competitive and its fees are low. I’ve also found its website to be easy to navigate.

Account Types: Checking, Savings, MMA, CDs, IRA CDs
Savings APY: 1.01
CD Terms: 3 to 120 months
Bank Branches: No
Free ATMs: Yes
Other Financial Services: Student loans, personal loans, home loans, credit cards
FDIC Certificate No.: 5649
Free Credit Score: Yes
Credit Inquiry: Soft pull
Year Established: Founded in 1911 as the Greenwood Trust Company, it changed its name to Discover Bank in 2000.
Other Features: Checking debit pays 1% cashback on up to $3,000 in debit card purchases each month, online bill pay

Capital One Bank

Capital One Bank can easily serve as your full-service bank. It offers all of the accounts most would need, and it even has bank branches in about ten states. Its rates are competitive and its fees are low.

Account Types: Checking, Savings, Kids Savings, MONEY (Teen checking), CDs, IRA Savings, IRA CDs
Savings APY: 1.00
CD Terms: 6 to 60 months
Bank Branches: Yes
Free ATMs: Yes
Other Financial Services: Auto loans, credit cards
FDIC Certificate No.: 33954
Free Credit Score: Yes
Credit Inquiry: Soft pull
Year Established: 1994
Other Features: Accounts for children, mobile deposit, online bill pay, overdraft options
More info: Capital One Bank review

HSBC Direct

While not the most popular bank on the list, it offers one of the highest savings account rates available today.

Account Types: Checking, Savings, CDs
Savings APY: 0.70
CD Terms: 6 to 24 months
Bank Branches: Yes
Free ATMs: Yes
Other Financial Services: N/A
FDIC Certificate No.: 57890
Free Credit Score: No
Credit Inquiry: Soft pull
Year Established: 2004
Other Features: Bill pay, mobile check deposit

Best Limited-Service Online Banks

Marcus by Goldman Sachs

When it comes to deposit accounts, Marcus does one thing and does it well–savings accounts. It pays one of the highest APYs available, with no monthly fees.

Account Types: Savings
Savings APY: 1.05
CD Terms: N/A
Bank Branches: No
Free ATMs: N/A
Other Financial Services: Personal loans
FDIC Certificate No.: 33124
Free Credit Score: No
Credit Inquiry: N/A
Year Established: 1990
Other Features: Mobile app

American Express Bank

American Express Bank offers limited deposit accounts–Savings and term CDs. As such, it’s not intended to replace your existing bank. It does, however, pay competitive rates.

Account Types: Savings, CDs
Savings APY: 1.00
CD Terms: 6 to 60 months
Bank Branches: No
Free ATMs: N/A
Other Financial Services: Personal loans, credit cards
FDIC Certificate No.: 35328
Free Credit Score: No, although available with Amex credit cards.
Credit Inquiry: N/A
Year Established: 2000
Other Features: None

Barclays Bank

Barclays Bank is another alternative for those looking to get a higher rate on savings or CDs. Its rate is competitive among online banks.

Account Types: Savings, CDs
Savings APY: 1.00
CD Terms: 3 to 60 months
Bank Branches: No
Free ATMs: N/A
Other Financial Services: N/A
FDIC Certificate No.: 57203
Free Credit Score: No
Credit Inquiry: N/A
Year Established: Founded in 2001 as Juniper Bank. Change its name to Barclays Bank in 2006.
Other Features: Mobile check deposit

Best Fintech Banking Services

Fintech companies have elbowed their way into the banking world over the last few years. These companies partner with an FDIC-insured bank, layering online and mobile apps on top of traditional banking.

Note that most Fintech banks do not pay the highest rates, although generally better than brick and mortar banks. What they do offer are unique tools and user experiences to help consumers manage their money.

Aspiration

Aspiration aims to combine banking and investing with social responsibility. It gives 10% of its profits to charity and offers socially-responsible investing through its Redwood Fund.

Account Types: Spend & Save Cash Management account
Savings APY: Up to 1.00
CD Terms: N/A
Bank Branches: No
Free ATMs: Yes, at all Allpoint ATMs
Other Financial Services: Investing, traditional IRA
FDIC Insurance: Cash balances in the Aspiration Spend & Save cash management account are eligible for FDIC insurance* by being swept to FDIC Member institutions.
Free Credit Score: No
Credit Inquiry: Soft pull
Year Established: Founded in 2013, opened for business in 2015.
Other Features: Mobile check deposit, cell phone protection insurance, up to 10% cash back on purchases, bonus rewards for spending at socially-conscious businesses, digital debit card

Chime

Think of Chime as a cash management account. It’s designed to help you budget your money and save for a rainy day. It charges virtually no fees but pays little in the way of interest. For that reason, Chime could serve as a checking account alternative, but not where you want to stash a lot of cash.

Account Types: Checking, Savings
Savings APY: 1.00
CD Terms: N/A
Bank Branches: No
Free ATMs: Yes, at all MoneyPass ATMs
Other Financial Services: None
FDIC Insurance: Chime accounts are insured up to the standard maximum deposit insurance amount of $250,000 through its partner banks, Stride Bank, N.A. or The Bancorp Bank, Members FDIC.
Free Credit Score: No
Credit Inquiry: N/A
Year Established: 2013
Other Features: Chip-enabled Visa debit card, fee-free overdraft, mobile banking, get paid up to two days early with direct deposit

Simple

Of the Fintech banks, this is my favorite. It offers checking, savings, and CDs, and pays a competitive interest rate on its savings account. It also comes with excellent tools to budget your money and save for the future.

Account Types: Checking, Savings, CDs
Savings APY: Up to 1.00
CD Terms: 12-month, no penalty for early termination
Bank Branches: No
Free ATMs: Yes, at all MoneyPass and Visa Plus Alliance ATMs
Other Financial Services: None
FDIC Insurance: Chime accounts are insured up to the standard maximum deposit insurance amount of $250,000 through its partner banks, Stride Bank, N.A. or The Bancorp Bank, Members FDIC.
Free Credit Score: No
Credit Inquiry: N/A
Year Established: 2009
Other Features: Mobile check deposit, Visa debit card,

Online Banks FAQs

Are online banks safe?

Yes. They offer the same or similar online security features as traditional brick and mortar banks. Their deposits are also insured by the FDIC.

What are the best online banks?

That depends on your specific financial needs. For the best savings rates, online banks are the clear winner over traditional banks. As a full-service bank, many online banks offer a full range of accounts, including savings, checking, CDs, and even investment accounts.

Do online banks charge fees?

Most online banks do not charge monthly fees. Some do charge certain fees, such as overdraft fees.

Do online banks offer free ATM withdraws?

Most online banks do have free ATM withdraws from their participating network of ATMS.

Best Online Savings Account Rates July 2020

July 17, 2020 by Rob Berger Leave a Comment

The best rates for saving an emergency fund or other short term goals are through online banks. They pay the highest interest with the lowest fees. Here is a regularly updated list of the best online savings account rates offered today.

What follows is an extensive list of the online savings accounts that pay the best rates. I’ve included information on monthly fees and any signup bonuses these banks offer.

Best Online Savings Account Rates

Best Online Savings Accounts

Vio Bank

APY: 1.11
Minimum Deposit: $100
Compounded: Daily
Monthly Fee: $0
Credit Check: Soft pull
Website: https://www.viobank.com/online-savings-account
FDIC #: 4063
About: Vio Bank is the online division of MidFirst Bank, established on February 28, 1911.

HSBC Direct

APY: 0.70
Minimum Deposit: $1
Compounded: Daily
Monthly Fee: $0
Website: https://www.hsbcdirect.com/savings/
FDIC #: 57890
About: HSBC Direct was established in 2004.

Marcus by Goldman Sachs

APY: 1.05
Minimum Deposit: $0
Compounded: Daily
Monthly Fee: $0
Website: https://www.marcus.com/us/en/savings/high-yield-savings
FDIC #: 33124
About: Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA, which was established in 1990.

CIT Bank

APY: 0.95 (Savings Builder Account)
Requirements: To earn this rate, you must maintain a minimum balance of $25,000 OR make monthly deposits of $100.
Note: CIT Bank also offers a high-yield savings account currently paying APY.
Minimum Deposit: $100
Compounded: Daily
Monthly Fee: $0
Website: https://cit.com/cit-bank/bank/savings/savings-builder-account/
FDIC #: 58978
About: CIT Bank was established in 2009.

American Express National Bank

APY: 1.00
Minimum Deposit: $0
Compounded: Daily
Monthly Fee: $0
Website: https://www.americanexpress.com/personalsavings/home.html
FDIC #: 27471
About: American Express National Bank was established in 1989.

Barclays Bank

APY: 1.00
Minimum Deposit: $0
Compounded: Daily
Monthly Fee: $0
Website: https://www.banking.barclaysus.com/online-savings.html
FDIC #: 57203
About: While Barclays traces its roots back to 1690, the U.S. bank was established in 2001.

Discover Bank

APY: 1.01
Minimum Deposit: $0
Compounded: Daily
Monthly Fee: $0
Website: https://www.discover.com/online-banking/savings-account/
FDIC #: 5649
About: Discover Bank traces its roots to 1911, then the Greenwood Trust Company. Discover acquired Greenwood in 1985 and changed the name to Discover Bank in 2000.

Ally Bank

APY: 1.00
Minimum Deposit: $0
Compounded: Daily
Monthly Fee: $0
Support: 24/7 support via call, chat or email.
Website: https://www.ally.com/bank/online-savings-account/

Capital One Bank

APY: 1.00
Minimum Deposit: $0
Compounded: Daily
Monthly Fee: $0
Website: https://www.capitalone.com/bank/savings-accounts/online-performance-savings-account/
FDIC #: 33954
About: Capital One Bank was established in 1994.

Online Savings Account Rate Comparison

Bank	APY	Monthly Fee	Min. Deposit
Vio Bank	1.11%	$0	$100
HSBC Direct	0.70%	$0	$1
Marcus by Goldman Sachs	1.05%	$0	$0
CIT Bank	0.95%	$0	$100
American Express	1.00%	$0	$0
Barclays Bank	1.00%	$0	$0
Discover Bank	1.01	$0	$0
Ally Bank	1.00	$0	$0
Capital One	1.00	$0	$0

Resource: If you are looking for a savings account with a signup bonus, check out our list here.

FAQs

How many withdraws can I make each month?

Savings accounts are limited by federal regulation to 6 withdraws per month. If you exceed this amount, your bank could charge you a fee or close your account. Note that making a withdrawal through a teller does not count toward this limit.

Are online savings accounts FDIC insured?

Yes. The banks in our list are all FDIC insured.

Are online savings accounts safe?

Yes. As noted above, online savings accounts are FDIC insured. In addition, online banks use the same internet security protocols as brick and mortar banks use for their online access.

Ally Bank Review

May 14, 2020 by Rob Berger Leave a Comment

Ally Bank, formerly GMAC Bank, is an FDIC-insured online financial institution. It offers a wide array of deposit accounts, home and auto loans, and investing services. In this Ally Bank Review, we’ll evaluate each banking service.

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About Ally Bank

Ally Bank dates back to 1919 when it opened its doors as GMAC, a division of General Motors. Its purpose then was to help dealers finance their inventory. Beginning in the 1920s GMAC began helping consumers finance their automobile purchases.

Fast forward to 2000, and GMAC Bank was established. In 2009, it changed its name to Ally Bank and became the online bank as we know it today. It’s headquartered in Sandy, UT.

Ally is an online-only bank. It has no branches. As of December 31, 2019, it had approximately $167 billion in assets, with total deposits of nearly $123 billion.

Pros & Cons

Here’s what we like about Ally Bank, and what could be better.

What we like

Wide range of deposit accounts and lending options
Website very user-friendly
Savings Buckets help you save for specific goals
24/7 Customer support via phone, chat or email

What could be better

While interest rates are competitive, they are not always the best

Bank Accounts

Savings & Money Market Accounts

Ally offers a traditional savings account as well as a money market account. There are two key differences between these accounts.

First, the savings account pays a higher yield (see below). Second, the money market account offers an ATM card with free, unlimited withdrawals from any Allpoint ATM in the U.S.

Ally Savings Account

APY: 1.25%
Minimum Deposit: $0
Compounded: Daily
Monthly Fee: $0
Website: https://www.ally.com/bank/online-savings-account/

Ally Money Market Account

APY: 0.50%
Minimum Deposit: $0
Compounded: Daily
Monthly Fee: $0
Website: https://www.ally.com/bank/money-market-account/

Tip

Check out our list of the best online savings accounts.

Ally Checking Account

Unlike some online banks, Ally offers a checking account that pays interest. Combined with no minimum deposit or monthly fee, it enables Ally to serve as your full service bank.

APY: 0.10% (less than $15,000 minimum daily balance) or 0.50% ($15,000 minimum daily balance)
Minimum Deposit: $0
Compounded: Daily
Monthly Fee: $0
Billpay: Set up one-time or recurring bill payments for free.
Remote Check Deposit: Yes. Deposit checks remotely with Ally eCheck Deposit, or transfer money from an account you have at another bank.
Zelle: Yes
ATM Access: Use any Allpoint ATM in the U.S. for free. Ally also reimburses up to $10 per statement cycle for frees charged at other ATMs nationwide.

CDs

Ally Bank offers three types of certificates of deposit:

High-Yield CDs
Raise Your Rate CDs
No Penalty CD

Except for the No-Penalty CD, all CDs have an early withdrawal penalty. Here are the penalties on early withdrawal for all CDs purchased or renewed after 12/7/2013:

CD Term	Early Withdrawal Penalty
24 month or less	60 days of interest
25 month – 36 month	90 days of interest
37 month – 48 month	120 days of interest
49 month or longer	150 days of interest

High-Yield CD Rates

Ally’s High-Yield CDs offer the highest yields available among all of Ally’s certificates of deposit.

Raise Your Rate CD Rates

Ally’s Raise Your Rate CDs protect you from rising rates during the term of the CD. If rates go up, you can elect to up the rate of your 2-year CD once during the term, and twice on the 4-year CD. Keep in mind, however, that you pay for this option in a slightly lower starting yield as compared to its high-yield CDs.

No-Penalty CD Rate

As the name suggests, this CD doesn’t charge a penalty for early withdrawal. Keep in mind, however, that it’s not like a savings account. If you decide to take the money out early, you must take all of it and the account is closed.

IRAs

Similar to the above accounts, Ally offers several deposit accounts to be held in your IRA:

IRA High Yield CD
IRA Raise Your Rate CD
IRA Online Savings

The rates are similar to the rates above for comparable products. In addition, you can open a Roth IRA, Traditional IRA or a SEP IRA.

Account Features

Savings Buckets

Ally makes it easy to save for specific goals, such as emergencies or a vacation. You can select up to 10 Savings Buckets, and then allocation your savings to each.

Savings Boosters

Ally offers three ways to move money between Savings Buckets. First, you can simply transfer money from your Core Savings to one of more buckets. Second, you can set up recurring transfers from a linked checking account. You determine the frequency of the transfers, the amount, and the one or more Savings Buckets to receive the money.

The third and final way to fund Savings Buckets is quite innovative. It’s called Surprise Savings. Ally analyzes checking accounts you link to Ally, and transfers money from those accounts to savings when it determines your money could work harder for you in savings.

Personally, I’m not comfortable turning over control of my money to an algorithm. That said, Ally does have controls in place to prevent things like an overdraft. And you can edit it any time you want.

Zelle

You can transfer money to and from your Ally bank accounts with Zelle.

My Experience with Ally Bank

I opened my first account at Ally on December 25, 2012. Why I opened it on Christmas I have no idea. I’ve held accounts and a number of online banks over the years. In my experience, here’s how Ally stacks up:

Its website is excellent. It’s extremely easy to use.
Its customer service is friendly and helpful.
Its interest rates a good, but never the best among online banks.

One stand-out feature is its interest-bearing checking account. It doesn’t charge a monthly fee and had no minimum balance requirement. While I’ve never used the checking account, it would allow you to use Ally as a full-service bank.

Ally Bank Review

Rob Berger

Interest Rates

Customer Service

Website Usability

Account Types

Account Features

Summary

I’ve banked at Ally for years and have always had a positive experience. Customer support is excellent and the website is very easy to use.

4.8