"How much money can I make?" is the first question almost everyone asks when considering different savings products, including money market accounts. So it's only natural that the interest rate an account offers is the number that gets the most attention. But when comparing money market interest rates, you should always read the fine print. How interest is calculated can make a difference in how much you're actually making on your money. You want the interest you are earning to be compounded—which means added back in—as often as possible. The more often interest is compounded, the quicker you're earning interest on your interest, which is how your savings really start to grow.
Some money market accounts compound interest monthly, quarterly or even annually. Other accounts, including those at Ally Bank, compound daily, which maximizes your return. Money market account interest rates are usually variable, which means they can change based on economic conditions. In general, rates tend to follow the inflation rate. Often, online banks offer better interest rates because they don’t have the overhead costs of maintaining traditional branches.
Calculating interest manually takes a bit of mathematical prowess, but an interest calculator can help make the job easier. The calculator on the Ally Bank website shows you an example of how much you can expect over a given time period for your savings based on our current money market account interest rates. It's important to remember that maintenance fees and minimum balance fees can eat into your earnings and balance. In general, when comparing accounts offering similar interest rates, remember the basic rule: the lower the fees and the more frequently interest is compounded, the better.
With an Ally Bank Money Market Account, interest is compounded daily at a variable rate that's consistently among the most competitive in the country according to Bankrate.com. We don’t charge monthly maintenance fees and you can open and fund your account with any amount. You can use any Allpoint no-fee ATM—plus receive up to $10 reimbursement for fees charged at other ATMs nationwide each statement cycle. You also get free standard checks and a debit card for convenient access to your money.
Learn more at Allybank.com or call live, 24/7 customer service at 877-247-ALLY (2559).
Ally Bank, member FDIC