Regardless of how much it is—or even how much you keep in your account—earning interest on checking accounts is one of those fundamental financial moves that simply make sense. That is, as long as you know the features and terms of your account.
Finding the Right Account for You
While Ally Bank offers interest on checking accounts, not every bank does. Of those that do, some charge a monthly maintenance fee if you don't meet certain requirements (although Ally Bank doesn't). In addition, you also may be on the hook for other fees or restrictions on how you can use your account. And even if you can meet those requirements, you may not be maximizing the interest-earning potential of your money because you might be earning a less than competitive annual percentage yield (APY).
Know Your APY
Different banks calculate the interest on checking accounts in different ways. Fortunately, regardless of the bank's method, you can use the account's APY when you're comparing one account to another. The APY is a percentage rate reflecting the total amount of interest paid on an account, based on the interest rate and the frequency of compounding for a 365-day period. So daily compounding interest means your money grows faster. With an Ally Bank Interest Checking Account, interest is compounded daily to maximize your earnings. Because banks that pay interest on checking accounts clearly advertise their APYs, it's not difficult to find out how hard your money will work in their account. One caveat, however, is that some banks offer an "introductory" APY, which means you may earn an attractive rate initially—but that rate sometimes is only temporary before it drops to a lower rate.
The Ally Bank Advantage
By contrast, the APY on the Ally Bank Interest Checking Account is consistently among the most competitive in the country. We don't offer introductory rates or charge monthly maintenance fees. You get free standard checks and a free debit MasterCard®. Plus we won’t charge you to use any ATM, and we reimburse other banks’ ATM fees nationwide. Moreover, our online banking option makes it easy to move money from your account to other accounts, whether here at Ally or at another bank.
Learn more by visiting Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.
Ally Bank, Member FDIC