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Olivia Pandora Stokes
Noodle Expert Member

March 17, 2020

A Look at One Popular Savings Account

Investing as a young adult can be overwhelming. Often, we don’t have a lot of knowledge about our different options or just get confused. Despite this, smart investments can give you financial health short-term and long-term. Taking a more active approach to your finances can also make you feel more powerful and excited about the future. Ally Bank is one option for those who are in the beginning stages of investing in a savings account. Let’s look at this specific account up close, so you can determine if an Ally Online Savings Account works for you.

First, it’s crucial to note with Ally Bank you won’t have access to a physical bank or ATM like you find for banks like Bank of America or Wells Fargo. This lack of a physical location is a deal-breaker for some, but for others, they can adjust and operate with the difference.

Right now the interest rate for this savings account is 1.6%, and you can research to compare this to other banks. The interest rate is subject to change, for example at some point last year the interest rate for the same Ally Savings Account was 2%. For any savings account expect to see the interest rate somewhere between 0-2%. In general, it’s common to see fluctuations as the world and economy change. A majority of economists will tell you not to be reactive when the changes happen (they most likely will). A savings account typically has a more concrete goal like saving for retirement, long-term emergency living expenses, a new car, a new house, or to pay off loans

I chose Ally to use as one of my savings accounts because they don’t have a minimum balance and have fewer fees than a lot of banks. This works well for a person who is starting out with a smaller amount to save or someone who’s looking to avoid additional fees. A key reason Ally is able to do this is because of their lack of brick-and-mortar stores, along with any expenses accompanied by that.

The signup process is easy, I know because I recently went through it myself. Once you’ve given them the information they need, they’ll get back to you with the information on how to make your first deposit. In my case, I think it took at least a week for me to receive the instructional on my deposit. All Ally Bank accounts can be accessed through their website and also their mobile app. Ally is also known for its great customer service, which I haven’t had to use yet. However, while you’re on the website they give you the wait-time for their customer service line. I like how this gives customers transparency so we know what to expect.

After you’ve made your first deposit, you’ll be able to look and see how your money can grow over time. Two features you’ll see are “Reoccurring Transfers" and “Surprise Savings". With the Reoccurring Transfers feature, you can set up a determined amount to be deposited every month automatically. If you have trouble with spending your savings while it’s still in your checking account, this can be an easy solution. A good rule in the personal finance community is to make saving simple and spending more difficult. Another feature they offer is the “Surprise Savings". This means Ally will look at the activity in the checking account linked and see if they find any opportunities for you to save. They determine this based on your typical income and expenses for the checking account. This can be a nice option to boost your savings.

With a savings account, the best decision you can make is an informed one. If an Ally Online Savings Account sounds like it can be a good choice for you, research more about them. Your Savings account should work for you, so make your life, income, and financial goals the biggest determiners. Once you do that, you’re on your way to a trip to Tokyo next year or renting that new apartment you want!

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