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Ally Bank review: Competitive APYs, fee-free accounts, and 24/7 customer support
Ally Bank is a Utah-based online bank known for offering competitive interest rates on its financial products with minimal fees.
It was founded in 1919 by General Motors to make car loans to its customers. It changed its name to Ally in 2010 and now offers personal banking products, retirement and investment accounts, and lending services.
Ally’s product offerings
Ally currently offers the following products:
Spending account: Ally’s spending account is a fee-free checking account that offers users up to 30 spending buckets to organize their cash flow and separate funds for different goals and expenses. It also earns interest on the balance, which isn’t the standard for most checking accounts. Account holders can deposit checks remotely and get access to their paychecks up to two days ahead of their payday.
Savings account: Ally’s savings account doesn’t charge a monthly fee or require a minimum opening deposit. The account comes with recurring roundups and automatic transfers into customers’ savings accounts. You can also create individual savings buckets to track your progress toward each of your savings goals.
Money market account: Ally’s money market account, or MMA, offers a competitive rate, or annual percentage yield, with debit card privileges and Ally eCheck Deposit to allow for remote check deposits. The APY you earn will depend on your balance, as Ally has three different balance tiers.
High-yield CD: Customers can choose a certificate of deposit, or CD, between three months and five years with no monthly maintenance fee or minimum opening deposit. Currently, Ally is rewarding CD account holders with a 0.05% loyalty reward if they renew their CD with Ally. Early withdrawals from your Ally CD are subject to an early withdrawal penalty between 60 and 150 days of interest, depending on your CD term.
Raise your rate CD: This CD option comes in two- and four-year terms with no minimum deposit to open and no monthly maintenance fee. However, the APY you’re paid will be based on your opening deposit. Withdrawals before your CD’s maturity date are subject to a penalty of 60-120 days of interest.
No penalty CD: The no-penalty CD is an 11-month term account. There’s no minimum balance required to open an account, although the APY you earn is based on your opening deposit amount.
Credit cards: Ally offers customers three credit card options — a platinum Mastercard, as well as two different cash-back cards that reward cardholders with up to 3% cash back for spending at gas stations, grocery stores, drugstores, and other retailers. Ally also offers around-the-clock fraud monitoring for cardholders and free online FICO scores for cardholders who want to build or maintain their credit score.
Home loans: Prospective homebuyers and homeowners can apply for a mortgage on Ally’s website without incurring any application, origination, processing, or underwriting fees. Ally offers fixed-rate, adjustable-rate, and jumbo home loans to meet different customer needs.
Auto loans: Ally’s vehicle financing can be used to cover new car purchases and vehicle leases.
Personal loans: Ally’s personal loans can be used to finance medical treatments and procedures, home repairs, and renovations. Personal loan applicants won’t be charged an application fee or down payment and offer a no-credit impact prequalification. If you decide to pay off your loan early, Ally won’t charge you a fee for doing so.
Retirement accounts: Ally Bank offers traditional IRAs and Roth IRAs for customers who want to save for retirement in a tax-advantaged account. These accounts do not charge an annual fee or monthly maintenance fee, although you may be responsible for a fee if you close your account or transfer funds to a new account. Ally also offers IRA high-yield CDs that range from three-month terms to five-year terms, with no minimum deposit to open.
Investment accounts: Ally offers self-directed trading accounts for hands-on investors who want to invest in stocks, ETFs, or options with no minimum to open an account. Investors who prefer a more hands-off approach can take advantage of Ally’s Robo Portfolios, which require $100 to get started and give customers the chance to invest in a mix of ETFs with the help of Ally’s experts and robo-adviser technology.
Account fees
Ally prides itself on having no hidden fees. Here’s a closer look at the account fees customers can expect to pay:
Pros and cons of Ally Bank
There are a few major perks and drawbacks customers should be aware of before deciding to bank with Ally.
Pros:
No monthly fees: Ally doesn’t charge monthly maintenance fees for any of its accounts.
No overdraft fees: Ally doesn’t charge any overdraft fees as of June 2021.
Large ATM network: Ally’s ATM network consists of more than 43,000 fee-free Allpoint ATMs across the nation. If you opt to use an out-of-network ATM, Ally will reimburse you up to $10 at the end of each statement cycle for fees charged at other ATMs.
No minimum deposits or minimum balance requirements: Ally doesn’t require a minimum deposit or minimum balance for its deposit accounts. Robo portfolios require a $100 minimum deposit and self-directed brokerage margin accounts require a $2,000 minimum deposit. It’s also important to note that CDs with a higher opening deposit may get a higher rate.
Cons:
External transfers may take longer: Ally does not offer same-day external transfers. It does offer next-day external transfers, although transfers can take up to three business days depending on when the transfer is initiated.
No cash deposits: Ally doesn’t accept cash deposits. Funds can only be deposited into your Ally account via remote check or by mailing a check, online transfers, direct deposit, and wire transfers.
Customer service and mobile banking experience
As an online bank, Ally does not have any physical branches. However, Ally’s customer support team is reachable 24/7 via telephone, live chat, and secure email.
Ally’s mobile app has a 4.7 rating on the App store and a 3.1 rating on Google Play. Users can bank primarily within the app, as it allows them to make deposits, move money between accounts, pay bills, set up direct deposit, locate the nearest ATM, and more.
Social and environmental impact
Ally’s investment in social and environmental change began in 2017. Its most recent Corporate Social Responsibility Report shows that in 2022, Ally dedicated $1.1 billion to Community Reinvestment Act loans and investments and more than $120 million spent with minority-owned businesses.
Additionally, Ally team members completed more than 44,000 volunteer hours to help support more than 1,700 charitable organizations. This past year also marked Ally’s second year of operational carbon neutrality for Scope 1 and Scope 2 emissions.
Frequently asked questions (FAQs)
1. Is Ally Bank safe?
Ally Bank is an FDIC-insured online bank, meaning that your deposits are insured up to $250,000 per depositor for each qualifying account ownership category. It has the "member FDIC" notation on its homepage.
2. Who is Ally Bank owned by?
Ally Financial Inc. owns Ally Bank.
3. How many withdrawals does Ally allow?
Ally allows 10 withdrawals per statement cycle from your online savings account, and 10 withdrawals per statement cycle from your money market account.
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