Updated February 27, 2024

Ally Money Market vs Savings

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Ally's Money Market and Savings accounts boast high APYs with no hidden fees. But, how do they differ? Read on to find out.

Ally is an online-only bank that offers impressive rates and unique features on its money market account and savings account.

If you want to know which one is better for you, read on for all the details to help you decide.

Ally Money Market vs Savings Acount

Here's a quick look at Ally's Money Market and Savings accounts' distinct features: [1]

  • Ally Money Market: You get 4.20% APY on all balance tiers. You can deposit checks remotely using the Ally eCheck Deposit feature on their mobile app.

    You also get a free debit card which allows you access to 43,000+ Allpoint ATMs nationwide.

  • Ally Savings: It has 4.20% APY on all balance tiers. Though it doesn't come with a debit card, Ally Savings offers online money management solutions called buckets and boosters.

    Buckets are digital piggy banks you can categorize for specific savings goals. Meanwhile, boosters automate savings effortlessly with options like recurring transfers, round-ups, and surprise savings.

Both accounts have no initial deposit or minimum balance requirements. You won't be charged any monthly maintenance, overdraft, or ACH transfer fees either.

What boosters does Ally Bank offer?
Ally Bank has the following boosters for its high-yield savings account:
  • Recurring Transfers: Automatically transfers your money into your buckets
  • Round-Ups: Automatically rounds up your spending and transfers the money from your checking account to your savings account
  • Surprise Savings: Automatically transfers "safe-to-save" money from your checking account to your savings account

Which Account Is Best for You?

Both Ally Money Market and Savings have decent APY to grow your money. Go through these points to decide which one to get: [2]

  • Choose Ally Money Market: for convenient access to your funds while earning a competitive rate. The included debit card gives you easy access to your money at any Allpoint ATMs in the U.S.

  • Choose Ally Savings: if your goal is preserve and grow your wealth. Since it doesn't come with ATM access, you can focus on maximizing earnings on the APY by using their buckets and boosters tools.

Is Ally Legit?
Yes, Ally Bank is a legitimate financial institution. They are a member of the FDIC (Certificate #57803) which means deposits are covered up to $250,000 per depositor for each account ownership category.

What is your top consideration when choosing between Ally's Money Market and Savings accounts?

Ally Money Market Pros and Cons

Ally Money Market offers more accessibility to your money. But here are its pros and cons for a better perspective.

Pros

  • Competitive 4.20% APY on all balance tiers
  • No opening deposit or balance requirements
  • No monthly maintenance fees
  • No overdraft and ACH transfer fees
  • Complimentary debit card
  • Access to 43,000+ Allpoint ATMs nationwide
  • Mobile check deposits
  • Unlimited deposits and ATM withdrawals

Cons

  • No physical branches
  • No cash deposits
  • No online budgeting tools
  • $20 per outgoing domestic wire transfer[3]

Compare Money Market Account Offers

How many transfers/withdrawals am I allowed to do?
Ally Savings and Money Market account holders can make a combined total of 10 withdrawals and transfers per statement cycle. This includes online and mobile transfers, Overdraft Transfer Services, checks, and point-of-sale transactions. There is no fee for going over the limit occasionally, but if it happens frequently, the account may be closed. [4]

Ally Savings Pros and Cons

If you're focused on saving and growing your funds indefinitely, Ally Savings is a good choice. But check out its pros and cons before you commit.

Pros

  • Good 4.20% APY on all balance tiers
  • No monthly maintenance charges
  • Unlimited deposits
  • No overdraft and ACH transfer fees
  • Create multiple buckets for your savings goals
  • Set up recurring transfers into buckets
  • Round-up strategy for automated savings
  • Automatic transfers from checking to savings account

Cons

  • No physical locations
  • No cash deposits
  • No ATM card and access
  • $20 per outgoing domestic wire transfer[5]

Compare Savings Account Offers

Other Ally Bank Products to Consider

Here are other banking options from Ally for you to check out:

Bottom Line

Ally Bank's Money Market and Savings accounts can both help you save and grow your savings.

With Ally Money Market, you get an impressive APY and easy access to your funds. And with Ally Savings, you can maximize your APY using the budgeting tools to make your money work harder.

Ultimately, both are solid options so it's just a matter of which account fits your situation best!


References

  1. ^ Ally Bank Compare Savings, Retrieved 02/23/2024
  2. ^ Ally Bank Money market account vs. savings account: Which should you choose?, Retrieved 02/23/2024
  3. ^ Ally Bank. Straight Talk Product Guide: Money Market Account, Retrieved 10/22/2023
  4. ^ Ally Bank. Money Market Account, Retrieved 2/28/2024
  5. ^ Ally Bank. Straight Talk Product Guide: Savings Account, Retrieved 10/22/2023
Discover Bank
Member FDIC

Online Savings Account - Earn 4.25% APY

  • No fees
  • No minimum opening deposit
  • No minimum balance required
Chase
Member FDIC

Chase Total Checking® - $300 Bonus

Expires 7/24/2024
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  • Access to more than 15,000 Chase ATMs and more than 4,700 branches
  • Chase Mobile® app - Manage your accounts, deposit checks, transfer money and more -- all from your device.
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  • Open your account online now
  • Available online nationwide except in Alaska, Hawaii and Puerto Rico. For branch locations, visit locator.chase.com.
  • Chase Overdraft Assist℠ - no overdraft fees if you're overdrawn by $50 or less at the end of the business day or if you're overdrawn by more than $50 and bring your account balance to overdrawn by $50 or less at the end of the next business day*
Bank of America
Member FDIC

Bank of America Advantage Banking - $200 Bonus Offer

Expires 5/31/2024
  • The $200 bonus offer is an online only offer and must be opened through the Bank of America promotional page.
  • The offer is for new checking customers only.
  • Offer expires 5/31/2024.
  • To qualify, open a Bank of America Advantage Banking account through the promotional page and set up and receive qualifying direct deposits totaling $2,000 or more into that new account within 90 days of opening.
  • Bank of America will attempt to pay bonus within 60 days.
  • Additional terms and conditions apply. See offer page for more details.
  • Bank of America, N.A. Member FDIC.
CIT Bank
Member FDIC

CIT Bank Platinum Savings - 5.05% APY

  • 5.05% APY with a balance of $5,000 or more
  • 0.25% APY with a balance of less than $5,000
  • $100 minimum opening deposit
  • No monthly maintenance fee
  • Member FDIC
Axos Bank
Member FDIC

Rewards Checking - Up to 3.30% APY

Expires 6/30/2024
  • Use promo code AXOS300 and apply by June 30th, to earn up to a $300 bonus!
  • Up to 3.30% APY
  • Zero monthly maintenance fees
  • Zero overdraft or NSF fees
  • Zero minimum monthly balance reqs
  • Unlimited domestic ATM fee reimbursements
  • Online debit card management
  • Simple, 3-step process for direct deposit
  • Only $50 to open an account

Darlene Santos is a research analyst at CreditDonkey, a bank comparison and reviews website. Write to Darlene Santos at darlene.santos@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

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About CreditDonkey
CreditDonkey is a bank comparison website. We publish data-driven analysis to help you save money & make savvy decisions.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed on this page are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

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