Ally Bank is an alternative to traditional brick-and-mortar banks. It’s a full-service, online-only bank. Ally offers competitive interest rates, though you can find higher annual percentage yields on savings accounts and certificates of deposit at other banks. It offers unique savings boosters, including round-ups, savings buckets and surprise savings.
High APYs, minimal fees and 24/7 customer support help to make Ally an attractive banking solution for the 21st century retail banking customer.
What we like
- Higher yields on CDs and savings accounts than traditional banks
- Several options for deposit accounts, loans and services
- 24/7 customer support access
- Large ATM network
- No minimum balance requirement
- No monthly fees on deposit accounts
- Loyalty bonuses on CDs
- Helpful savings features
- ATM reimbursement of up to $10 for each statement cycle
What we don’t like
- No brick-and-mortar branches
- No cash deposits accepted
Ally Bank products
Ally’s Interest Checking account offers competitive rates compared with brick-and-mortar alternatives. The account offers attractive benefits such as no monthly maintenance fees to maintain a minimum balance, two-day advance access to paychecks through direct deposit and a Round Ups savings service to increase savings when you pair this service with an Ally savings account.
Interest checking doesn’t charge monthly fees and there’s no minimum deposit to open the account. Ally also stopped charging overdraft fees in 2021.
Checking account features
| APY | 0.25% |
|---|---|
| Minimum balance | $0 |
| Monthly fee | $0 |
| Overdraft fee | $0 |
| Foreign transaction fee | 1% |
Pros
No fees: There are no fees for standard services such as minimum balances, overdraft fees or monthly maintenance fees.
Large ATM network: Customers have access to the Allpoint ATM network with access to more than 55,000 ATMs. Ally also refunds $10 in out-of-network ATM fees each month.
Helpful services: Ally provides direct deposit customers with access to paychecks two days earlier and lets you enroll in round-ups to move money from your checking account to increase savings.
Round-the-clock customer service: Need help? Customer service representatives are available 24/7 via phone or chat app.
Robust digital tools: Ally’s mobile app allows customers to manage all transactions that would be handled through traditional banks. Customers can seamlessly manage their account with convenience.
Cons
No-cash deposits: Ally doesn’t allow cash deposits via ATM, which could be inconvenient for customers who deal in cash.
No physical locations: You’ll have to handle your money completely online, so if you prefer in-person service, Ally’s checking account may not work for you.
Ally’s online savings account offers an impressive yield. Combined with round-ups from the Ally Interest Checking account can provide an automatic savings strategy to boost your savings. Additionally, its online savings account offers savings buckets and a surprise savings feature to help you better categorize savings goals and mindlessly increase your savings balance.
Savings account features
| APY | 4.25% |
|---|---|
| Minimum balance to open | $0 |
| Monthly maintenance fee | $0 |
Pros
Buckets help reach savings goals: Divvy up your savings into separate buckets without using multiple accounts. This allows you to earmark savings for specific goals.
No fees: There are no monthly minimum balances or deposits required to open the account.
Cons
No cash deposits: This will be an inconvenience for customers who need to make deposits in cash.
Ally offers three types of certificates of deposit that offer highly competitive yields: high-yield CDs with multiple terms, bump-up CDs and an 11-month no-penalty CD. CDs pay the highest interest rate, which can vary based on balance and term, if rates rise within 10 days of opening and funding the accounts. An Ally CD qualifies for a 0.05% rate loyalty reward when renewed.
CD account features
| 1-year CD APY | 4.50% |
|---|---|
| 3-year CD APY | 4.00% |
| 5-year CD APY | 3.90% |
| 2-year Raise Your Rate CD | 3.75% |
| No Penalty CD APY | 4.00% |
| Minimum balance | $0 |
| Early withdrawal penalty | 60 to 150 days of interest depending on term |
Pros
No minimum balances: No minimum balance to open either account.
Variety of CD types: Multiple types of CDs offered.
Competitive rates: Competitive APYs offered for all CD types.
Cons
Higher rates elsewhere: You can find higher yields at other banks.
Ally’s money market account offers competitive yields on par with many banks on CNET’s list of top money market accounts. The yields rival those available with the high-yield savings account, although the money market account offers check-writing privileges and debit card access. The mobile app supports mobile check deposit into money market accounts.
MMA account features
| APY | 4.25% |
|---|---|
| Minimum balance | $0 |
| Monthly maintenance fee | $0 |
| Overdraft fee | $0 |
| Excessive transaction fee | $10 per month after 6 transactions |
| Foreign transaction rate | 1% |
Pros
High APY: All balance tiers earn the highest APY available.
No minimum balance: There’s no minimum balance requirement, and there are minimal standard fees.
Mobile deposits: You can make mobile check deposits.
Cons
Lack of cash deposits: You cannot make cash deposits.
Banking experience
Ally doesn’t have physical branches, however, customers can access banking support 24/7 via phone, email or live chat. Ally ranks third in customer satisfaction via J.D. Power’s 2023 US Direct Banking Satisfaction Study.
Overdraft fees
Ally Bank does not charge overdraft fees. Instead, it offers CoverDraft to cover up to $250 if you overspend. Ally will withdraw the money from your next deposit. Ally also offers an Overdraft Transfer service that lets you move money from your savings account to your checking to cover the overdraft.
Customer service
Because Ally doesn’t have physical branches, you must be comfortable managing your account transactions online and reaching out via phone (877-247-2559), live chat (www.ally.com) or email when you have questions. Ally customer support is available 24/7. Call-in wait times are available on the website, but you can bypass the wait by contacting support via live chat.
Is money safe with Ally Bank?
Ally Bank accounts are insured by the Federal Deposit Insurance Corporation for up to $250,000 per person, per account category in case of a bank failure.
Who is Ally Bank best for?
Ally is a good bank option if you’re OK with managing your money online since there aren’t any physical branches. The bank is also a good choice if you want to manage your money in one place since it offers CDs, checking, saving and money market accounts. Ally suffices as a main bank unless you typically make cash deposits. Then it’s good as a backup savings account if you want to tap into high-yield savings while maintaining a relationship with a traditional bank.
