Ally Bank Review 2024

Ally Bank Spending Account

One of the advantages of not having any physical branches is that the bank can pass along those savings to customers in the form of lower fees. That’s the case with the Ally Bank Spending Account, the only checking product offered by this bank.

Customers pay $0 in monthly fees, and there’s no minimum deposit to open the account. Ally also doesn’t charge overdraft fees.

Customers get complimentary standard checks, a debit card and bill-pay service. Account holders who use an Allpoint ATM never face any charges. Go outside of that ATM network of 43,000+ ATMs and Ally will reimburse you up to $10 per statement cycle.

Because there are no physical branches, customers must rely on technology to fund their accounts. You can set up direct deposit of your paychecks, and Ally’s eCheck Deposit feature lets you deposit paper checks using your cellphone camera. Ally also supports Zelle, the peer-to-peer payment platform that enables you to send or receive money from friends and family.

If you’re more old-fashioned, you can mail in deposits using postage-paid envelopes.

Ally Bank pays 0.10% annual percentage yield (APY) on checking accounts with less than a $15,000 minimum daily balance, and 0.25% APY for accounts with minimum daily balances of $15,000 or more. The latter is higher than some of its rivals, though not as high as the best checking accounts.

The Capital One 360 Checking Account, for example, pays an APY of 0.10% APY on all balance tiers, while the Wells Fargo Premier Checking pays an APY of 0.25% to 0.50% APY depending on balance.

Ally Bank Savings Account

The best online savings accounts tend to offer higher rates on savings deposits and Ally Bank is no exception. You won’t get rich off the APY, but you’ll generally get a better rate than you would at a traditional bank.

Ally Bank pays an APY of 4.20% on its savings account, which is more than 10 times the national average. Interest compounds daily. Note: The APY may remain the same for all balance tiers or change based on your account’s daily balance.

The account has a $0 monthly maintenance fee and no minimum balance requirement. And due to federal regulation changes, Ally doesn’t currently limit the number of transactions you can make from the account. In the past, you were limited to six transactions per statement cycle. After that, Ally typically charged $10 for every additional transaction, but, due to Covid-19, the bank is temporarily refunding that fee. Customers can make deposits via smartphone or by mail.

Ally Bank Money Market Account

In addition to a savings account, Ally Bank also offers a money market account, which pays an APY of 4.20% on all balance tiers. That makes it one of the best money market accounts, though the rate is not the highest available.

Customers pay no monthly fees with this account and there are no minimum balance requirements. You can make unlimited deposits and ATM withdrawals for free.

Ally Bank Certificates of Deposit

When it comes to certificates of deposits (CDs), Ally Bank offers varying terms and types to meet savers’ needs. Its traditional High-Yield CDs range from three months to five years. There’s no minimum deposit requirement to open a CD.

Here’s a look at Ally Bank’s CD rates:

Ally Bank also offers its Raise Your Rate CD with two- and four-year terms. You can increase your rate once during the two-year term or twice during the four-year term. The APY on both terms is 3.75%.

Both the high-yield CDs and raise-your-rate CDs have early withdrawal penalties that vary by term. For terms of 24 months or less, the bank charges 60 days of interest. The charge moves up to 90 days of interest for terms between 25 and 36 months. For terms between 37 and 48 months, the fee is 120 days of interest. And for terms of 49 months or longer, the charge is 150 days of interest.

For savers looking for liquidity, Ally Bank offers its No Penalty CD. With this product, customers can withdraw money without having to face any penalties. You can start drawing down your money on the seventh day following the funding of the CD. This CD is currently available in an 11-month term and pays 4.00% APY, which is one of the best CD rates on no-penalty CDs.

Ally Bank also offers both high-yield and raise-your-rate IRA CDs, with APYs that are the same as for the regular CDs.

Ally Bank makes it easy to access your banking products, relying on technology to amp up the convenience factor. In addition to 24/7 customer service and online banking, Ally has a mobile app for Windows, iOS and Android.

What you can do with the app varies on the operating system. Its iOS version is the most robust. It offers the ability to check balances, find ATMs, transfer funds, manage one-time and recurring transfers, deposit checks, pay bills, send money with Zelle and use Ally Assist.

Ally’s app gets 4.7 out of 5 stars on the App Store and 2.4 out of 5 stars on Google Play.

Ally has even created an Ally Skill for Alexa, Amazon’s voice-activated digital assistant. This means customers with an Alexa-enabled device can use voice commands to check balances on their checking, savings, money market and CD accounts. You also can transfer money, hear recent transactions and get the current rates on its products.

Ally likes to say on its website that its fees are “a short story.” There aren’t many. The bank charges no monthly account maintenance fees, and has no fees for overdrafts, standard or expedited ACH (Automated Clearing House) payments, incoming wire transfers (both domestic and foreign), low daily balances or cashier’s checks.

But Ally customers do pay these charges:

• $20 for an outgoing domestic wire transfer (Outgoing international transfers are not permitted.)
• $15 for expedited delivery of items
• $25 an hour if you need “extensive research” on your account transaction history

Ally is worth consideration for savers interested in high rates, low fees and no minimum deposit requirements—that’s a rare trifecta at banks.

It’s worth noting that Ally is a full-service bank, providing a one-stop-shop for banking customers also interested in mortgages, loans and investing. Because of its robust mobile app and online banking technology, it’s possible to accomplish all your banking needs without visiting a physical location.

In place of branch access, the bank offers 24/7 customer service via phone, live chat or email. But that means that this bank isn’t ideal for those who prefer to bank in person, especially if you often need to deposit cash.

Ally consistently offers competitive interest rates, landing them among the best online banks, including being recognized among the best online savings accounts, best CD rates, and best money market accounts.

Ally Bank ranks third in J.D. Power’s 2022 U.S. Direct Banking Satisfaction Study, behind only Charles Schwab Bank and Discover Bank.

Ally vs. SoFi

SoFi is an online financial services company that offers checking and savings accounts. This combined account earns a competitive APY on all balances and charges no monthly fees. Customers have access to a sizable network of fee-free ATMs, and SoFi doesn’t charge overdraft fees.

Both Ally and SoFi offer direct deposit, which allows you to get paid up to two days early. You can also access automatic savings features with either one.

Compared to Ally, SoFi offers fewer banking products. There’s no option to open a CD or money market account. However, SoFi does offer other products that Ally doesn’t, including student loans and insurance.

Chime® vs. Ally

Chime isn’t a full-service bank, but it does offer checking and savings products. The Chime Spending account functions like a checking account, while the Chime High-Yield Savings Account helps you grow your money.

There are no overdraft fees, minimum balance fees or monthly fees. You can access your money at more than 60,000  ATMs¹, and you won’t pay foreign transaction fees either.

The Chime Spending Account includes overdraft on debit card purchases and cash

withdrawals., and you can get paid up to two days early with direct deposit². If you’re interested in getting the best APY on savings, Ally offers a higher rate than the Chime Savings account.

Ally vs. Marcus

Marcus is a brand operated by Goldman Sachs, offering high-yield savings accounts, CDs, investment accounts, loans and credit cards. Rates for savings accounts and CD accounts are on par with Ally’s.

There are no fees or minimum deposit requirements at Marcus. There are no physical branches, but you can make same-day transfers of up to $100,000 to or from a linked account at another bank. Customer service is available 24 hours a day, seven days a week.

The biggest downside of using Marcus may be the lack of checking account options. If you’d like to do all of your banking in one place, then Ally Bank offers a more comprehensive range of products.

¹Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.

²Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.