At Ally Bank, we’re committed to banking in your best interest, including offering consistently competitive rates. As part of that commitment, we’re introducing balance tiers for all CDs, Online Savings, and Money Market accounts, including IRAs. These tiers launched on November 7, 2015.
Below you’ll find answers to some of the questions you may have about our new balance tiers and how the change will affect you.
How is an account with balance tiers different?
An account with a balance tier structure may provide a different interest rate based on that account’s balance. If you have multiple accounts, a tier is assigned to each account for that individual account’s balance, not the sum of all accounts.
What is the new balance tier structure?
We currently offer three account balance tiers, which are now in effect for all CDs, Online Savings, and Money Market accounts (including IRAs). The balance tiers are as follows:
- Less than $5,000
- Between $5,000 and $24,999
- Over $25,000
When will the rates change and what will they be?
While the balance tier structure has now been implemented, rates may remain the same for a while across all tiers. Ally’s brand promise includes offering consistently competitive rates for all of our customers, regardless of tier. As the factors that determine our rates change, including the conditions in the marketplace and the competitive landscape, you may begin to see a change in rates.
My current account balance is not in the highest tier. What does this mean for me?
Adding the ability to tier rates doesn’t change our commitment to offering consistently competitive rates to all of our customers, no matter which tier your account falls within. Our new balance tiers are intended to provide us with the flexibility to potentially offer customers a way to earn a different rate as their balances and relationships with us grow—if not now, then in the future.
How will this affect my Online Savings or Money Market account?
If you have an Ally Online Savings or Money Market Account, your balance tier is decided by each account’s end-of-day balance. As such, your interest rate is variable and determined by your current balance tier.
How will this affect my CD?
If you currently have a CD, your existing rate won’t change as a result of the balance tiers. When your CD comes up for renewal, your rate will then be determined by the balance rolled over and your term and tier at the end of the 10-Day Grace Period. For CDs opened on or after November 7, 2015, the interest rate will be determined by your opening deposit and the current rate for that term and tier.
As always, our Ten Day Best Rate Guarantee, which gives the best rate we offer for your CD during the first ten days starting with your open date if you fund your CD within that time, will apply.
For more information on the new balance tiers or any Ally Bank products, please visit Ally.com.
Comment on this article
Gale on October 5, 2015 at 11:19am
Not thrilled with these changes. I'll be looking at other banks
Eric on October 5, 2015 at 12:47pm
The under specificity of this announcement is appalling. What exactly will the different tiers look like? Will the lowest tier see their rates decline or will the higher tiers see their rate increase? Why does your current rate page not reflect the upcoming changes? This together with the ATM reimbursement changes is making me reconsider my relationship with Ally. I just recommended to someone they open both an Ally checking and savings account. Now I wish I hadn't.
Justin on October 5, 2015 at 1:21pm
Ally was a great bank when they were government owned. They've progressively gotten worse the past two years though, first with the ATM reimbursement limits and now with lower & tiered rates.
Jon on October 5, 2015 at 1:21pm
I got the email today announcing this. There is not enough information in the letter or in the linked documents to understand how bad the impact of this will be. - How much lower will the rates be for the two lower tiers than for the top tier? (Certainly, the rates for the top tier won't be going up!) - Will the top-tier rate also be going down relative to the marketplace, or will it be maintained at its current favorable relative position to other online banks? - Are the tiers determined on a relationship basis by adding up the balances of each depositor's several accounts, or will each separate account (checking, MMA, savings, etc.) have its own tier and corresponding rate? - Is the tier based on the average balance for the month, the lowest daily balance, the highest daily balance, or the closing balance on the statement date? So many unanswered questions! I called the 800 number, but the agent said she is "not privy" to any of these detail. Bad move, Ally, for instituting what is sure to be an unfavorable change for your clients without giving us enough advance information to understand the impact.
AP on October 5, 2015 at 2:31pm
The simple low fee banking options are getting replaced with more of the same as every other bank. First ATM reimbursement restrictions, and now tiered interest, I am very dissatisfied with these changes, and will be looking for another bank.
Michele on October 5, 2015 at 5:45pm
The vague language is interesting. I highly doubt you don't already know the rates that your will implement for each tier, why not just post it already?
Brian on October 5, 2015 at 6:57pm
It is hard to tell the exact impact of this change with the little information provided. I have been an Ally customer for awhile and appreciate the solid services provided. I would like to request you consider a scenario where you look at a customers total balance rather than the balance of any one given account. I am guessing there are other customers like myself that have multiple savings accounts and mutliple CDs (for instance a CD ladder). Assessing the customer value on any one account would give a false indication of their total savings with Ally. Just a suggestion, that if adopted, would assure you keep me on as a customer.
Bob S. on October 5, 2015 at 8:19pm
Long time customer, I will looking elsewhere.
Retso on October 5, 2015 at 11:26pm
Interesting that they will not tell us what the new rates will be for each tier. So much for a "straight talk blog". If these changes lower my rate I will definitely be looking elsewhere.
Benjamin W. on October 6, 2015 at 1:14pm
This plus increase in fees from $9 to $25 doesn't make Ally attractive to me anymore. I can find more convenient options, locally. Time to move.
Trever on October 6, 2015 at 3:25pm
The lack of information on what the new tiers will have as interest rates makes this email effectively useless from a consumer standpoint. Between the new tiered interest rates and the loss of ATM fee reimbursement I will be switching my money to a different bank.
Confused... on October 6, 2015 at 4:05pm
When will the new rates for the new tiers be announced?
Jake on October 6, 2015 at 6:31pm
Wow, you guys really just can't resist the temptation to be exactly like every other bank, losing everything favorable about Ally to begin with. So much for "It's just the right thing to do" and "It's good to be different." At this point, I can't think of any banks that I'd say Ally is truly better than. That sucks, because when I opened my accounts Ally was better than all of them.
Shawn on October 6, 2015 at 11:09pm
What a vague statement. I hope this means same great rate for low balances and increased rates for higher balances... if not I will reconsider banks. I am a long time member.
Brad M. on October 7, 2015 at 3:44pm
Wow...guess my money will be moved out when these new changes go into effect.
Doug on October 7, 2015 at 6:37pm
No mention of the new rate tiers. This can't be good! All I can say is if my current rate drops so will my account with Ally.
Ally B. on October 8, 2015 at 8:27am
Hi Gale, we’d like to walk you through these changes further. Give us a call at 1-877-247-ALLY (2559), or chat with us online at allybank.com.
Ally B. on October 8, 2015 at 8:27am
Hi Eric, we felt it was important to provide our customers with advance notice of this change. The new rate tier structure will not become effective until 11/7/15, so you may not see the new tier structure before that point. Our rates will continue to be determined by several factors including conditions in the marketplace and the competitive environment, so the rates for each tier have not yet been set. However, with the new rate tier structure in place, Ally will have the flexibility to provide a way for customers to potentially earn a different rate as their relationships with us grow. Adding the ability to tier rates doesn’t change our commitment to offering consistently competitive rates for all customers.
Ally B. on October 8, 2015 at 8:28am
Hi Justin, our focus remains on offering great benefits and products to our customers. The new rate tier structure will not become effective until 11/7/15, so you may not see the new tier structure before that point. Our rates will continue to be determined by several factors including conditions in the marketplace and the competitive environment, so the rates for each tier have not yet been set. However, with the new rate tier structure in place, Ally will have the flexibility to provide a way for customers to potentially earn a different rate as their relationships with us grow. Adding the ability to tier rates doesn’t change our commitment to offering consistently competitive rates for all customers.
Ally B. on October 8, 2015 at 8:29am
Hi Jon, while these changes take effect on 11/7, your rates may remain the same for the time being. We are committed to offering competitive rates for all of our customers. For CDs opened on or after 11/7/15, the interest rate is determined by your opening deposit and the rate for that term and tier. For CDs renewing on or after 11/7/15, your rate will be determined by your term and tier at the end of your 10-Day Grace Period. As always, our Ten Day Best Rate Guarantee will apply. If you have an Online Savings or Money Market Account: Your interest rate is variable and determined by your account’s end-of-day balance, starting on 11/7/2015. The tier rate is based on the balance in each account and not a combination of balances in separate accounts.
Ally B. on October 8, 2015 at 8:29am
Hi, our focus remains on offering great benefits and products to our customers. We’d love to talk further with you about these changes, please give us a call at 1-877-247-ALLY (2559), or chat with us online at allybank.com.
Ally B. on October 8, 2015 at 8:31am
Hi Michele, we felt it was important to provide our customers with advance notice of this change. You may not have a different rate for a while. Our rates continue to be determined by the marketplace and the competitive environment, so the rates for each tier have not yet been set. However, with the new rate tier structure in place, Ally will have the flexibility to provide a way for customers to potentially earn a different rate as their relationships with us grow. Adding the ability to tier rates doesn’t change our commitment to offering consistently competitive rates for all customers.
Ally B. on October 8, 2015 at 8:31am
Hi Brian, thank you for your feedback. We will definitely pass this onto our team.
Ally B. on October 8, 2015 at 8:32am
Hi Bob, we don’t like hearing this! Please give us a call at 1-877-247-ALLY (2559), or chat with us online at allybank.com.
Ally B. on October 8, 2015 at 8:32am
Hi, we don’t like hearing this! Please give us a call at 1-877-247-ALLY (2559), or chat with us online at allybank.com.
Ally B. on October 8, 2015 at 8:32am
Hi Jake, we are committed to offering competitive rates for all of our customers. Our rates will continue to be determined by several factors including conditions in the marketplace and the competitive environment, so the rates for each tier have not yet been set. However, with the new rate tier structure in place, Ally will have the flexibility to provide a way for customers to potentially earn a different rate as their relationships with us grow. Adding the ability to tier rates doesn’t change our commitment to offering consistently competitive rates for all customers.
Danielle on October 8, 2015 at 4:41pm
I've been a loyal ally customer since before it was GMAC. Announcing changes like this without giving your customers even the faintest idea of what those rates will be was an unwise marketing decision on your part. Changing rates is normal, but dropping a bomb on your customers without providing any info at all about how this will affect them insults their intelligence and puts a bad taste in their mouths. I will be keeping an eye out for how this change will affect me, and I second Brian @ 13 who asked that rates be based on a customer's total balance, rather than individual accounts. To simplify my saving, I have separate accounts for separate purposes. If I had to merge my accounts to qualify for a reasonable interest rate, then ally is no longer a viable bank for my needs.
Dave on October 8, 2015 at 6:18pm
I am waiting until I see the effect, but I am very skeptical. I have always been a fan of Ally but like your new tier rates my opinion of Ally has slipped to a lower tier. Ally recently sent me a survey about deposit fees. Fees I would accept for money transferred into Ally. If Ally institutes fees for deposits or withdrawals of any kind I will FLEE. That's FEE with an L.
Kyle on October 8, 2015 at 10:58pm
Will the tier be determined on an account by account basis or by the total value of all accounts?
Nick on October 8, 2015 at 11:51pm
I agree with Brian. Because Ally doesn't have a "sub-account" feature, multiple accounts is a great way to help people organize their savings. I know that my overall savings rate has only increased after opening a separate account specifically for my car. http://www.ally.com/savings-accounts/multiple-savings-accounts/ And this is from Ally's help center: Even though Ally doesn't offer subaccounts, it's easy to open multiple accounts to organize your savings goals. When you create separate accounts you can give them nicknames like 'New Car' or 'Hawaii Vacation'. That way every time you log in you'll see how close you are to meeting your goal. Just follow a few simple steps to get started. Open a new account for each savings goal Nickname the accounts to label your savings Set up recurring transfers or add to your savings when you want to Manage all your Ally accounts in one place with online banking
Sandra on October 9, 2015 at 11:43am
As a retired worker whose only income is now social security and bank interest, this may prove to nullify my financial plans meant to keep myself afloat monthly and still keep an account that I would be able to depend on for real estate taxes annually. Now, if the interest is "variable", there will be a major portion of the year during which I will fall below your lowest tier until I can replenish each month. By the time I reach the original account balance, it will almost be time to take it out again--I am truly beginning to feel battered! No increase for Social Security, raised Medicare Premiums and now this!!!!!!!
Brian on October 9, 2015 at 1:39pm
Opened an account with a credit union today. What bugs me the most is the opening paragraph -- as if to make it sound like the recent changes are a benefit. Ally spun the capped ATM reimbursements in a similar way. I don't understand how capped ATM reimbursements serves customers better. It's a shame to see Ally going the way of the big banks. Hey Ally, I'm committed to being a loyal customer, so I'm going to take my money elsewhere.
Jackie on October 9, 2015 at 6:15pm
I used to hear vaguely good things about Ally and I was getting ready to open accounts with Ally. After reading all the negative comments from current customers, I have decided not to open any accounts with Ally. Here is why: 1) the vagueness of the announcement demonstrates poor judgment and certainly a poor understanding of customer relations. 2) The tier program proclaims loudly that small customers simply don't matter as much as customers with bigger accounts; that is so typical of regular banks! 3) The increase in fees that commentators referred to makes me think that Ally is going for the profits of fees like any other bank; most banks make more than 50% of their profits from fees to customers. It used to be that banks made their money by lending, using the deposits of their customers for the necessary capital, and paid their depositors a greater interest rate because they were lending and earning interest on the loans to other customers. This made more money available to consumers all around. 4) Ally has shot itself in the foot regarding the possibility of maintaining its image as different from the typical bank, except for the fact that it is online. Now a question to ask ourselves is this: shouldn't an online bank that does not have the overhead of human beings working in brick-and-mortar branches be able to charge the same fees and pay as little interest on deposits as brick-and-mortar banks that provide face-to-face service as well as online services? To me, it appears that Ally is just maximizing profits at the expense of customers, yes, just like all the other banks. I won't be opening an account here after all. What a disappointment!
David on October 9, 2015 at 10:05pm
Count me as another frustrated customer. This announcement could have been handled much better, with details about the actual rates that will be offered.
gary on October 10, 2015 at 7:24pm
Will have to wait and see what 11/7 brings. I usually open my next CD in the ladder on the 1st of the month but I will be holding until I see the new rates. I hope this is not the end of the road.
Craig on October 11, 2015 at 9:14am
Wow, there sure are a lot of negative thinking people commenting here. I have been happy with Ally's services and rates in the 2 years I have been a customer and I , while anxious for details, am willing to wait until the new rate structures are announced before I praise or condemn the changes.
Jack on October 11, 2015 at 3:24pm
Bad, bad move ... Sending message to your customer base that small accounts do not matter ... I have a news for you- many big accounts do start with smaller ones... Too bad that you are pushing your very loyal customers to the competitiors.... myself included :(
Devin on October 11, 2015 at 5:54pm
I'm sure these changes will not be good for me. I have a large balance spread out among many CDs because that is what suits my emergency fund the best. If I start receiving a lower rate because I have two smaller CDs rather than one larger, then Ally has lost its competitive edge for me and i will be moving on.
Devin on October 11, 2015 at 6:06pm
I’m sure these changes will not be good for me. I have a large balance spread out among many CDs because that is what suits my emergency fund the best. If I start receiving a lower rate because I have two smaller CDs rather than one larger, then Ally has lost its competitive edge for me and i will be moving on. I've been a customer for I don't know how many years and have just completed consolidating CDs from a number of banks to Ally. That's ok, though. I'm patient and can roll these out over the next two years just as easily.
Alvin on October 11, 2015 at 9:30pm
Some enlightened banks look at your entire balance across ALL TYPES of accounts to determine your value as a customer. Are you an enlightened bank? Enlightened customers flock to enlightened banks and away from the un-
T J. on October 12, 2015 at 12:42am
I have enough to qualify for the top tier, but if they mess with the rates, I am gone. Already dusted off the old CU account and ordered new checks if I need to move everything back.
Dee on October 12, 2015 at 2:27pm
One of the best advantages of having CD's with Ally has being able to invest a small amount with a great rate. I have grandchildren and love saving for them in CD's. It would be a great disappointment if I couldn't continue to have that great benefit from Ally.
Dee on October 12, 2015 at 2:32pm
I second your sentiments. I just transferred money from a very good bank to open a interest checking account and now wonder if I made the right choice. They should include total moneys in Ally, not by each account. Very disappointing.
Steve on October 13, 2015 at 8:50pm
If Ally truly values the relationship it has with its customers, it will look at the totality of that relationship (i.e., all accounts in total) rather than on an individual account basis. People have different reasons for establishing accounts the way they do, but regardless of the number of accounts, isn't it more important how much is in those accounts on a combined basis rather than on an individual basis? This new policy was not very well thought out, in my opinion.
Tom on October 14, 2015 at 6:35am
You're going to give me less interest because I have my savings broken down into 10 accounts as opposed to just one?... Really? Guess what Ally, you just lost over 100k in deposits.
Pete on October 15, 2015 at 5:11am
I will be moving my money away from my ally savings and money market accounts too when this change takes effect on Nov 7th.
Anna on October 15, 2015 at 4:10pm
Do I understand it correctly that Ally would value me as customer more if I have one saving account with $25k than when I have 6 accounts with $10-20k each? and $100k total in them? WOW!!!! who would thought....
Dan on October 15, 2015 at 10:30pm
As many mentioned above - looking on account by account basis is not what I expected at all, and can not resist but here for you some "facts of (bank) life" : IT IS A FACT: happy customers = more recommendations for friends and family IT IS A FACT: unhappy customers = stampede to exit IT IS A FACT: implementing change as announced = ? SEE ABOVE
Brian on October 17, 2015 at 10:36am
It seems we lost the attention of the Ally department that is monitoring and responding to these posts. There are many posts questioning if the tiered structure will be based on an individual account value, or the total value of all accounts a customer holds. Can we get any insights on if Ally is listening to their customers comments prior to November 7th?
Steve on October 19, 2015 at 11:08pm
Brian, I believe the answer to your question, based on what I've read from their "news," is that it will be based on an account by account basis rather than based on all accounts a customer holds. I could be wrong on this but I don't think so. Maybe, just maybe, they're rethinking this new policy and how it will ultimately be implemented, so perhaps we'll hear something else before November 7th. But then again, maybe not.
Ally B. on October 21, 2015 at 1:44pm
Hi Brian, the tier rate is based on the balance in each account and not a combination of balances in separate accounts.
Dee on October 22, 2015 at 9:36am
I can see thousands closing down their smaller accounts based on the tier rates of each account.
Brian on October 24, 2015 at 9:30am
That may be an unfortunate move. We will all be waiting to see what your interest rates look like when announced on November 7th. Possibly what Ally is not considering in this move is that it is the "go-to" bank for a culture of those willing to readily switch banks to achieve the highest return on their savings.
Brian on October 24, 2015 at 5:03pm
@Dee, let me clarify my comments. I was replying to the post by Ally that conveyed the tiered structure will be based on individual account balances. I was attempting to make a point that Ally is currently highly regarded in a community of individuals who take charge of their finances and have already recognized the value of placing their savings in a higher interest earning bank such as Ally currently offers. Ally is often ranked at the top of many financial blog sites due to their low fees and high interest rates. I am thinking there is a group of investors that currently use Ally that have no issues switching to a different bank should Ally's interest rates become less competitive or their fees continue to rise.
Dee on October 25, 2015 at 3:51pm
My apologies Brian. I misunderstood. Thank you for clarifying your comments.
Jim C. on November 3, 2015 at 2:40pm
I came back to this post today thinking there might be more specifics about what you are planning to change this weekend. Apparently I was too optimistic. I have to echo all of the other statements made here about the bad direction that Ally appears to be taking over the last year or so. Rates have not been "top of the class" for some time, but have remained competitive. Dropping the ATM fee reimbursement program to $10/mo. seems reasonable, but could impact me when travelling. And now a confusing tiered system that disregards overall deposits and instead focuses on the balance of each individual account. Any one of these changes by itself may not signal that there is a problem, but in combination, I think that my days of recommending Ally to my friends and family are coming to an end. I have praised this bank since I found you - way back in the GMAC days - and I'm still hoping for the best. I sure hope you are taking all of this customer feedback seriously.
Ken on November 7, 2015 at 8:52am
Although I like Ally, I don't like uncertainty. It is now Nov. 7th. Where can I find the tier rate information?
D2 on November 7, 2015 at 12:32pm
Good message, Jim, and I agreed. There has not been a peep about the interest tiers from Ally after the initial announcement. Today is the effective date, and I still can find nothing about it. Ally, this is beginning to impact negatively my view view of your historically transparent approach.
Steve on November 7, 2015 at 7:40pm
To those asking questions about the interest rate on the various tiers, if you look closely, you will see that Ally is showing that the interest rate remains at 1.00% on all balance tiers. At least it is for now. In my view, what this change has done is to give Ally the flexibility to change the interest rate on any or all of the tiers at any time, without any notice. Just as when there were no tiers, the interest rate could be changed at any time, without any notice. It is no different today, except for the fact that they've split accounts into three tiers based on their individual account balance.
A M. on November 8, 2015 at 9:47am
I found something interesting on the FAQs page. There was a question about the minimum to open a CD. Ally's answer was: There's no minimum deposit to open a CD, but you MAY get a higher rate with a higher opening deposit. I see no other rates for a higher opening deposit. The operative word is you may get a higher rate.
A M. on November 8, 2015 at 9:54am
I made a comment and the moderator didn't put it through. Check out the FAQs page and number 3 about minimums and you will see that it depends upon how high your opening deposit is.
Jeff on November 28, 2015 at 10:37pm
It has been quite a while since either inventoried banks and their rates and services. I understand the business reasons behind this move, but it looks like it's time now for a change. Thanks ally, we had a good 5 year run.
Bob on December 14, 2015 at 11:16am
Too bad this is going down. For the most part, Ally never has had rates at the top of the market, but have consistently been close enough that it was the right choice. I have already taken a few bucks in seed money and opened an account at another online institution, with rates the same as the current Ally rates, so this is not a matter of chasing rates. Having worked in the industry, I can understand the desire to get rid of "unprofitable" lower balance accounts to reduce processing costs. No doubt, the analysis was done assuming a runoff of "only". xx%, and Ally would be happy with results at or near that goal. I also understand the inertia of savers (most, but not all, as evidenced by the writers of these comments), who are typically either uninformed or disinclined to act. As I stated, I spent my career in banking operations (which, ironically resulted in my decision to go with Ally) and had numerous discussion with my marketing friends who would often speak of their low account acquisition costs. Will you reduce retention costs at the expense of acquisition costs? Or maybe just don't want deposit dollars at thus point? Guess that's why I was an ops guy..... Finally, I must say I admire the patience of the call center folks who have likely answered a large number of calls asking reasonable questions, to which the must often respond "I have not been given that information...," as they did with me. Regardless, I, along with many of your customers, will be watching. As is often the case, many will sound off, but not act. In this case, I suspect that may not be the case. For what it worth.....