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- Financial planners and non-experts alike praise the ease of use and high interest rates on Ally's high-yield savings account.
- Ally's high-yield savings account has no minimum balance or monthly fees, and offers a competitive annual percentage yield.
- To open a high-yield savings account at Ally, you only need your Social Security or tax identification number, address, birthdate, and legal name.
- See Business Insider's picks for the best high-yield savings accounts »
If you like earning money while you sleep (who doesn't?), then it's probably time to open up a high-yield savings account.
High-yield savings accounts offer much higher interest rates than your checking account or even a traditional savings account.
While there are dozens of banks offering competitive rates on high-yield savings accounts, financial planners and non-experts alike are obsessed with Ally's. Ally's high-yield savings account has no minimum balance or monthly fees, and offers a competitive annual percentage yield. Ally has landed spots on Business Insider's lists of the best high-yield savings accounts, online banks, and national banks, just to name a few.
How to open an Ally high-yield savings account
1. Visit Ally.com
Go to Ally.com and look for its online savings account. (Note that these screenshots were taken when Ally's APY was 2.2%; it has since changed along with interest rate drops by the Fed.)
3. Select "open account"
The "open account" button will bring you to this page, where you'll let Ally know if this is your first account at the bank. At the top of the window, you'll see the five steps to open an account.
3. Select the high-yield savings account
Next, you'll specify what type of account you want to open and the amount of your initial deposit. Ally offers the same interest rate on all balance tiers for its online savings accounts.
4. Set up an initial deposit
You'll get a chance to review your initial deposit before moving on to the next step.
5. Confirm US residency
You must be a legal resident or resident alien of the US to open an account.
6. Enter personal information
Next you'll enter your basic information — name, birthdate, Social Security number, mother's maiden name (for security purposes), and your occupation.
7. Enter your social security number
If you don't feel comfortable providing your Social Security number online, you can call Ally directly to finish your application.
8. Provide address history
You'll also be asked to provide your address history if you have moved in the last five years.
Ally, among many other banks, uses your address history to verify identity. It helps protect against fraudsters opening accounts in your name.
9. Sign up for e-statements
Since Ally is an online bank, it needs you to sign a form consenting to electronic statements (you can still obtain paper copies, if you like).
10. Sign a tax form
Before submitting your application, you'll need to sign another tax form. As with any high-yield savings account, if you earn interest throughout the year, you'll get a Form 1099-INT from your bank to include with your tax return, and your interest will be subject to taxes at your normal income tax rate.
11. Wait for a review
Ally takes less than a minute to review your application.
12. Answer security questions
If you haven't figured it out by now, Ally is a stickler for verification. The last step before your application goes through is answering a few specific security questions, however random they may seem.
13. Set up your opening deposit
There's no minimum balance required to open a high-yield savings account at Ally, but you can make an initial deposit if you like.
14. Create your account
The final step is setting up your online account.
15. Beef up security
Once your account is set up, Ally recommends adding even more security measures.
16. Check for a security code
If you opt-in to the security code feature, Ally will send you a security code by your choice of text or email each time you attempt to log in to your account from an unfamiliar computer.
17. Familiarize yourself with the layout
Here's what your dashboard will look like inside your account. Ally makes it very easy to open up and label multiple savings accounts for different goals, and keep track of how much interest you're earning on each account.
That's it! You'll be provided with an account number and routing number, which you can use to set up a one-time or automatic, regular transfers.
Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.
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