How does a savings account work?
A savings account is a safe, convenient place to keep your money. The main advantage of using a savings account is that you can earn interest, allowing your balance to grow over time. Following are some features of many savings accounts.
Keep your money safe
If your financial institution is a member of the Federal Deposit Insurance Corporation (FDIC), your deposits are insured up to the maximum amount allowed by law. The FDIC insures both your principal (your initial deposit and any subsequent deposits) plus any interest you've earned up to the maximum allowed by law.
The bank basically pays you interest for the use of your money, yet you are free to withdraw subject to account terms and conditions. With an Ally Bank Online Savings Account, the interest on your money is compounded daily, so your balance grows faster than it will with other financial institutions that compound interest monthly or even yearly. Moreover, based on interest rates published by Bankrate.com, online banks like Ally Bank usually offer more competitive interest rates than traditional banks because they do not spend as much in overhead costs.
As an account owner, typically you'll receive a statement every month showing your account's balance, including any withdrawals or deposits you have made, plus the interest you have earned. It is a good idea to keep your own record of each transaction and check it against each statement, whether you receive paper statements or electronic statements.
There are usually few or no monthly maintenance fees with a savings account, but some banks charge a fee if you don't keep a minimum balance. (Ally Bank doesn't require a minimum balance.) By law, banks are required to limit the number of certain withdrawals or transfers you can make within a certain time period. Be sure to review the terms and conditions of each financial institution you are considering before opening an account.
Whatever your savings goals, Ally Bank has a way to help you get there—from Online Savings Accounts and Money Market Accounts to a full range of certificates of deposit (CDs)—all at some of the most competitive interest rates available. Visit Allybank.com or call live, 24/7 customer service at 877-247-ALLY (2559) today.