Ally Bank Just Raised (Then Dropped) Their Savings and MMA Interest Rate

Ally Bank Banner For the past few years, the state of deposit interest rates has been nothing short of depressing.  Month after month, I’ve been forced to update our best online savings account page by reducing interest rates for every single bank and in some cases, interest rates have declined by more than 80%.  However, for the first time in a very, very long time, a bank has decided to increase their interest rate, as Ally was offering a 0.94% APY on their savings account and MMA products. But as of 1.17.12, Ally’s interest rate is 0.84%.

An increase of five points wasn’t going to make anyone rich, but it was a significant raise in rate considering how low online savings account interest rates are these days.  For example, if I had $100,000 in my Ally account, the difference of five points would add around $50 to my yearly interest gains  ($1090 earned, rather than $1040).  The more money invested, the greater the return and vice versa but for most consumers, this change really won’t have an impact.  What it does show is that Ally continues to push the envelope when it comes to online interest rates, even if it didn’t last.

Ally has also recently launched an IRA and 4 year raise your rate CD.  These two new products are in addition to a large variety of other online deposit options and Ally is quickly becoming everyone’s favorite online banking institution.  In fact, I decided to open up an Ally Bank account not to long ago and just received a deposit agreement pamphlet in the mail.  The pamphlet informed me of rules regarding deposits and withdrawals as well as showed the current product offering as follows:

Published or Updated: August 22, 2013

Comments

  1. Benjamin says:

    I’ve heard really great things about Ally bank and they have been very favorably mentioned by many of the readers on my own personal finance blog. However, I’m very partial to my USAA bank account and am not quite ready to quit them yet.

    There customer service rocks!

  2. I am in the notary directory business and the amount of work our notaries get is very tied to interest rates. If rates go down, more people refinance, and then there would be more loan signings for notaries. If there is massive inflation, and home values go up, then there might be lots of jobs for mobile notaries as well!

    Jeremy Belmont is the author of the 123notary BLOG
    http://blog.123notary.com/

  3. CR Mortgage says:

    Ally also provides access to competitive mortgage rates for Conventional, FHA and VA loans through http://www.gmacmortgage.com

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