What you need before you start

Opening an Ally savings account takes about 10 minutes online, and you can do it from your phone or computer. You will need a valid government-issued ID (a driver's license, passport, or state ID card), your Social Security number, and a way to fund the account — either a debit card, another bank account, or a wire transfer.

Ally is an online-only bank, which means there are no physical branches. Everything happens through their website or mobile app. This also means you cannot walk into a location with questions — you will use phone support, email, or their online chat instead.

Before you begin, decide how much money you want to put in when you open the account. You do not need a minimum deposit to open an Ally savings account, so you can start with $1 if you want to, though most people deposit at least $25 to $100 to make the account feel real and worth using.

Key Takeaways

  • You can open an Ally savings account entirely online using your ID, Social Security number, and a debit card or bank account to fund it.
  • The account has no monthly fees, no minimum balance requirement, and no limit on how many times you can withdraw money each month.
  • Your first deposit can happen when ready through a debit card, or take one to three business days if you transfer from another bank account.
  • Once your account is open, you can set up automatic transfers from your paycheck or another account to build savings without thinking about it.
  • Ally's savings rate changes over time, so check their website for the current rate before you open the account.

The step-by-step process to open your account

Go to ally.com and look for the button that says "Open an Account" or "get your free guide." Click on the savings account option — Ally offers several types of savings products, but the basic savings account is the most straightforward. You will be asked to choose whether you are opening the account as an individual or as a joint account with someone else. Most people choose individual.

Enter your personal information: full name, date of birth, address, phone number, and email address. Ally will ask for your Social Security number at this stage. They use this to verify your identity and check your banking history. You will also create a username and password for logging in later.

Next, you will upload or photograph your ID. Hold your ID up to your phone camera or use a scanner if you are on a computer. The photo needs to be clear enough to read the text. Ally's system usually accepts it within a few seconds, but if the image is blurry or cut off, you will be asked to try again.

Finally, you will link a funding source. You can use a debit card (Visa, Mastercard, or Discover), transfer from another bank account, or arrange a wire transfer. If you use a debit card, the money appears in your Ally account when ready. If you transfer from another bank account, it takes one to three business days.

How to fund your account after it opens

Once your account is open, you have several ways to add money. The fastest is a debit card transfer, which shows up right away. You can also set up a one-time transfer from another bank account, or arrange for automatic transfers on a schedule you choose — for example, $50 every payday.

If you get paid by direct deposit, you can have your employer send part of your paycheck straight to Ally instead of to your main checking account. To do this, you will need your Ally account number and routing number, which you can find in the app under "Account Details" or by calling Ally's customer service. Give these numbers to your payroll department, and they will set it up.

Ally also lets you transfer money out to another bank account if you need it. These transfers take one to three business days. You cannot withdraw cash at an ATM using an Ally savings account card, because Ally does not issue debit cards for savings accounts — but you can transfer money to a checking account and withdraw from there.

Understanding Ally's savings rate and how interest works

Ally's savings account earns interest, which means the bank pays you a small percentage of your balance each month. The rate changes based on what the Federal Reserve does with interest rates, so the amount you earn is not fixed. Before you open the account, check ally.com to see what the current rate is.

Interest is added to your account monthly, usually on the last day of the month. If you have $1,000 in the account and the rate is 4.0% per year, you would earn about $3.33 that month (the exact amount depends on how many days are in the month). That money stays in your account and earns interest the next month too — this is called compounding.

The interest rate Ally offers is usually higher than what you would get at a traditional bank branch, which is one reason people choose online banks. However, rates change frequently, so do not assume the rate you see today will be the same in six months.

Setting up automatic savings transfers

One of the most useful features of an Ally savings account is the ability to set up automatic transfers. This means money moves from your checking account (or another bank) to Ally on a schedule you choose, without you having to remember to do it.

To set this up, log into your Ally account and go to "Transfers." Choose "Set Up Recurring Transfer" and select how often you want money to move — weekly, every two weeks, monthly, or on a custom schedule. Tell Ally how much to transfer and which account to pull the money from. Once you confirm, the transfer happens automatically on the day you chose.

Many people set up a small automatic transfer on payday — for example, $25 or $50 — so money goes to savings without them having to think about it. This is one of the easiest ways to build a savings habit, because the money is already gone before you have a chance to spend it.

What to do if you run into problems during setup

If your ID photo is rejected, make sure the image is clear, well-lit, and shows the entire front of your ID. Shadows and glare often cause rejections. Try taking the photo again in natural light, or use a scanner if you have one.

If your debit card is declined during funding, the card may be blocked for online transfers. Call the bank that issued your debit card and ask them to allow transfers to Ally. Some banks require you to do this for security reasons. Once you give permission, try again.

If you cannot complete the setup online, call Ally's customer service at the number on their website. They can walk you through the process over the phone and may be able to help with issues that the online system cannot resolve. Wait times vary, but Ally generally answers calls within a few minutes during business hours.

Frequently Asked Questions

How long does it take to open an Ally savings account?

The entire process usually takes 10 to 15 minutes. Your account is active when ready after you complete the setup, though if you fund it with a transfer from another bank, that money takes one to three business days to arrive.

Do I need a minimum balance to keep the account open?

No. Ally has no minimum balance requirement, and there are no monthly fees. You can keep the account open with $0 in it if you want, though most people deposit at least something to start using it.

Can I have more than one Ally savings account?

Yes. You can open multiple savings accounts with Ally and give each one a nickname to keep track of them — for example, "Emergency Fund" and "Vacation." This helps you organize money for different goals.

What happens if I need to close my account?

You can close your Ally savings account anytime through the app or by calling customer service. Ally will ask where you want any remaining money sent. There is no penalty for closing the account.

Is my money safe in an Ally savings account?

Yes. Ally is a member of the FDIC (Federal Deposit Insurance Corporation), which means your money is insured up to $250,000 per account type. If Ally were to fail, the FDIC would return your money.