Review of Money Market Account at Ally Bank
For those that don’t know, a money market account is a form of savings account offered by a bank or credit union. The major difference is for the most part and under most conditions they offer better interest rates than a regular savings account. With Ally Bank that’s the case, and their solid interest rate and other very competitive parameters for their money market account make it a great place to put your money you want to keep safe or build a nest egg and protective moat around.
A money market account isn’t to be confused with a money market fund, which is a mutual fund that invests in low interest rate securities.
Anyway, as far as the Ally Bank money market account, you can even open an account with $0.00, and of course once you make your first deposit, start earning its high interest rate of 1.55 APY (as of this writing). This makes it a great money market account for new customers as well as old, along with those just starting out in their savings strategy as well. Many other banks require a much higher deposit to meet their best interest rates, which for the most part, are lower than Ally Banks at this time.
Here are the guidelines of Ally Bank’s money market fund as listed on their web site:
- Open with $0
- No minimum balance
- No monthly fees
- Check card and first 50 checks are free
- No ATM fees — if another bank’s ATM charges you a fee, we will refund the first four, up to $6 per month
- Daily compounded interest for maximum earnings
- FDIC insured Maximize your coverage
- Six transactions per statement cycle with no fees. Why only 6
- Your actual variable rate will go into effect when you make your opening deposit
Do keep in mind that by law you can only withdraw or transfer from your account six times in a statement cycle (monthly), so you could get charged a fee if you go beyond that with most banks, including Ally Bank.
But the point of savings in the form of money market fund is to save, so it shouldn’t be a problem for anyone to keep under that figure. After all, that’s the reason we should have a checking account.
Still, this is a really good way to save, and the Ally Bank money market account is one of the best in the country at this time.
Tags: money market account
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