The consumer guru, Clark Howard, says that online banks are a good way to earn higher interest rates, and, as long as they are FDIC insured, they are fine to use. Bankrate.com gives Ally a 5 star rating. But, personnally, I would feel uncomfortable with any online bank. I would get a local bank for checking, and use an investment company, like Vanguard or Fidelity for a money market account. Currently, the Vanguard MMA has a yield of 1.73 percent, as compared with 1.7 percent for Ally. If you want a CD, I would use a credit union, like penfed.org.
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