Money market accounts can be quite diverse, which is why it is imperative to compare various elements of these accounts to ensure the right account is found.
The Ally Bank Money Market is quite popular among individuals with a desire to make their money grow because it has an annual percentage yield (APY) that is higher than the average savings account and higher than the money market accounts that some financial institutions carry.
But one significant highlight of the Ally Money Market is that there is no minimum deposit required to open the account. This means that the accountholder can open with $0 and deposit later when they can. Another highlight is that there are no monthly maintenance fees, making this a free account. Accountholders also receive a free Visa® Debit card and free standard checks to give easy access to the money if it is needed.
It should be noted that the debit card and checks are not sent to the accountholder until the signature card included with the Ally welcome pack that is received in the mail is signed, mailed, and processed by Ally. A second note is that there are federally imposed limits on certain types of withdrawals, which you will find discussed below.
The first area to look at when exploring this account, however, is the interest. APY is, perhaps, one of the most important aspects to this account. The rates do vary, but Ally works to keep their rates as high as possible. They do not offer introductory rates to draw new customers. Instead, they keep their rates as high as they can at all times. The rate is variable and will change after account opening as the market and competition changes. Despite the variability, the rates do remain quite competitive. In fact, Ally is keeping their rates well above some of the most well-known financial institutions.
In addition to keeping the rates high, the money is able to grow faster through daily compounding interest, which is the account earning interest on top of interest. This gives Ally a hand’s up when compared to other financial institutions that compound their interest on a monthly, quarterly, or annual basis. By compounding daily, the money has a chance to grow faster. Of course, the amount of money in the account each day is going to dictate how much interest is earned. The more money in the account, the more a person can earn.
As for fees, there are a number of fees that the account can accrue based upon user activity. One major seller in this area is the fact that there are no ATM fees at any ATM nationwide. In other words, fees are reimbursed to the account at the end of the statement cycle. Cash back transactions that occur at retail locations when the card is used as debit are also exempt from fees.
Now here is an explanation of the few fees that accompany this account:
Excessive Transaction Fee
As mentioned before, there are federally imposed limits when accessing the money. An excessive transaction fee must be charged if there are more than 6 electronic transactions. Accountholders are allowed to make unlimited ATM withdrawals and unlimited deposits, including scanning checks to deposit them into the Ally account (1st check takes up to 6 days to deposit, but subsequent checks take as little as 24 hours). Check, telephone, and other electronic transactions that take money out of the account are limited to 6. The limited transactions can be electronic transfers to other accounts or transactions to third parties. If the limit is exceeded, the charge is $10 per transaction.
Overdraft And Other Fees
When it comes to overdrafts, the Ally Money Market Account has shown to not be an account that nickels and dimes its accountholders. If an accountholder does not have enough money in their account, Ally will honor one transaction for the life of the account and charge a $9 fee. If there is more than one transaction that occurs in one day in which there is not enough money in the account, the one $9 fee will stand and that is it. Ally will not charge a fee for every failed transaction in a 24 hour period due to insufficient funds. It does not matter if the item is paid or if it is returned.
If an accountholder needs to stop payment on an item, a $15 fee is charged. Stop payments can be requested on checks and electronic transfers.
When an accountholder makes a deposit from another account and that bank does not pay that deposit due to insufficient funds or for another reason, it is considered a returned deposit item. This charges a fee of $7.50 to the Ally account.
The last fee is the cross border/currency conversion transaction. The cost is 1% of the amount of each transaction. This applies to both debit and ATM transactions that occur in a foreign country. If the card will be used internationally, it may be ideal to call Ally first to confirm that the card can be used in the country being visited.
In addition to fees accrued based on user activities, there are a number of services that Ally provides that either have no fees at all or come at a certain cost. Those services and their fees are:
- Checks – Standard checks (50) are free, but the prices vary on custom check styles
- Cashier’s check – $0
- Online check images – $0
- Online Statements – $0
- Incoming domestic and international wire transfers – $0
- Outgoing domestic and international wire transfers – $20
- Expedited delivery of checks, debit cards, and other items – $15
- Account research on transaction histories – $25 per hour
The Ally Difference
This is an account that is convenience-based and it is managed by a bank that seems to accommodate its customers in the way of not wanting to take money out of their pockets every chance they get.
In addition, the Ally Bank Money Market Account is FDIC Insured for the maximum the law allows. Ally gives tips on how to increase this coverage, such as opening accounts for each family member since FDIC coverage is per accountholder. This coverage is an additional benefit to mobile banking on the go, high APY, daily compounding interest, fast ACH transfers, convenience, and low fees. All of these benefits, along with the no minimum deposit, makes the Ally Bank Money Market Account unique.
Have you had any personal experience with Ally Bank Money Market Account?