If you want a bank that will allow you to save your money, invest it, or just have an account without any hidden fees, then Ally Bank is the place to go. Whereas many other online banks offer only savings accounts and CDs, Ally Bank offers a full suite of banking services.
With one of the best high-yield savings accounts in the nation, along with interest-paying checking accounts and attractive rates across the board — not to mention a lack of fees — Ally Bank has become one of the most popular online banks in the U.S.
In this review, we’ll cover Ally Bank’s products and services, as well as the pros and cons of opening an account.
Ally Bank Review
Summary
When it comes to Products & Services, Ally Bank’s lengthy list of options is hard to beat. Unlike some other online-only options, Ally Bank is a full-service financial institution. The icing on the cake is Ally Bank’s Interest Rates, which are consistently among the highest in the nation. With hardly any Fees & Charges, Ally Bank keeps getting better and better. The Website/App is easy to use, and you can contact Customer Service 24/7. The one downside is that there are no local Ally Bank branches where you can go for help.
Ally Bank Features
| Ally Bank | Features |
|---|---|
| Banking Account Types | Checking, Savings, Money Markets, CDs |
| Other Account Types | Credit Cards, Auto Loans, Home Loans, IRAs, Investments through Ally Invest |
| Minimum Required Deposit to Open Account | $1 |
| Number of Branches | Internet Only |
| ATM Network Size | Allpoint® ATM network |
| ATM Reimbursements | Yes, up to $10 per statement cycle for fees charged at other ATMs nationwide |
| Remote Deposit | Yes |
| App Availability | iOS, Android, Amazon Apps, Windows Phone, and Mobile Optimized Website |
| Bill Pay | Yes |
| Person to Person Money Transfers | Apple Pay®, Google Pay™, Samsung Pay™, Masterpass™, Microsoft Wallet |
| Money Transfers | ACH, Wire Transfers, Zelle® |
| Customer Service Types | Phone, Live Chat, Email |
| Customer Service Hours | 24/7 |
| Member FDIC | FDIC Certificate #57803 |
| Routing Number / ABA Number | #124003116 |
| Current Promotions | No current promotions See more Bank Promotions |
Additional Features
- Access to More Than 43,000 Free ATMs. Thanks to Ally’s relationship with Allpoint, you can use any one of that network’s ATMs for free.
- Reimbursement for Non-network ATMs. If you use a network that’s not part of the Allpoint network, Ally Bank will reimburse you for fees up to $10 per statement cycle.
- Ally Invest. If you’re also looking for an online stock broker, Ally can be a one-stop-shop thanks to the commission-free Ally Invest.
- Only One Overdraft Fee per Day. Unlike some other banks, which charge you an overdraft for every transaction beyond your balance, Ally Bank limits your fees to one per day.
- Online Education. The Ally Bank website does a great job of breaking down financial topics to help educate customers. Topics are broken down by stage of life — for example, getting started, getting married, budgeting, saving for a major purchase, preparing for retirement, and more.
- FDIC Insurance. Each Ally Bank account is FDIC-insured up to $250,000.
- Third-Party App Support. Ally Bank supports Quicken, Mint.com, Personal Capital, and a host of other online money management tools
- Sub-accounts. You can create sub-accounts with different names and account numbers (great for targeted savings or setting up a child’s account).
What Is Ally Bank?
Ally Bank is the banking wing of Ally Financial. Its “sibling,” brokerage platform Ally Invest (formerly TradeKing), is one of the internet’s industry leaders for investing.
Ally Bank has come a long way in the last few years. Initially, the bank focused mainly on high-interest savings accounts and certificates of deposit. Since then, Ally Financial has added several different products and services and become a full-service online financial institution.
Ally now offers:
- Savings products and IRAs
- Interest checking
- Ally CashBack credit card
- Auto loans and home mortgages
- Brokerage and robo-advisor services
- Tools and educational content
How to Get Started with Ally Bank
Opening an account with Ally Bank online is simple. All you have to do is find the product page for the type of account you want to open and choose “Open Account.” Then simply enter your personal information and choose the funding option you prefer. You’ll also have to submit to a credit check when you apply.
Unlike some banks, Ally Bank approves applications based on credit risk, so your creditworthiness may affect your ability to open an account.
If you’d rather apply by mail, you can download an account application from Ally Bank’s website and mail it in.
Funding Your Ally Bank Account. You can fund your new Ally Bank account via online transfer using either the website or mobile app. You can also easily transfer money from one Ally Financial account to another.
Ally Bank also offers eCheck Deposit, which you can use to deposit a paper check by taking a photo with your mobile phone or scanning it and uploading it to the Ally app or website.
Of course, you can also fund your account by wire transfer or mail in an endorsed paper check to Ally’s offices in Philadelphia.
There are no minimum deposits required to open an Ally Bank account.
Ally Bank Account Options
Ally Bank Interest Checking
In today’s banking environment, it’s becoming more common for banks to charge you for a checking account instead of paying you to use your checking account.
Ally Bank is one of the exceptions, offering an Interest Checking Account that pays more interest than most banks pay on their savings accounts. The Ally Bank Interest Checking Account is among the best free online checking accounts in the nation.
Every Ally Bank checking account comes with online and mobile banking services, a debit Mastercard with EMV chip technology, standard checks, online bill pay, and postage-paid deposit envelopes.
As with the Ally Bank savings account, there are no monthly minimums or maintenance fees.
Members have access to the Allpoint ATM network in the U.S. for free, plus Ally Bank reimburses up to $10 per statement cycle for fees charged at other ATMs nationwide.
Ally Bank Savings Accounts, Money Markets, and CDs
Ally Bank offers five main savings products:
Online Savings Accounts. Ally’s interest rates are currently among the highest in the nation (see additional savings account rates). There are no minimum balances, no account opening minimums, and no maintenance fees.
Money Market Accounts. Ally Bank money market account holders have access to a check card with free ATM transactions, but there’s a limit of six withdrawals per month (according to the Federal Reserve’s rule).
Classic CDs. Ally offers certificates of deposit (CDs) of varying lengths and interest rates. I recommend visiting the Ally Bank CD page for more information about current rates. You can also compare CD rates on our site.
No-Penalty CDs. One of the features that sets Ally Bank’s CDs apart from the CDs at other banks is the no-penalty certificate of deposit. The no-penalty CD allows you to lock in an interest rate while still having the option to withdraw your funds without any penalties. The downside is that the no-penalty CD rates are slightly lower than the traditional CD rates. But they’re also higher than standard interest rates, so you have a chance to earn more interest than with a savings account. This gives people flexibility in the event of an emergency or if they decide to withdraw their funds because rates rise and they can lock in a better rate.
IRAs. The IRAs offered by Ally Bank are primarily savings vehicles, featuring certificates of deposit or fixed rates of return. While I generally recommend opening an IRA with the intent of long-term growth, housing a certificate of deposit in an IRA can be a good strategy for those on a fixed income or those who are in the withdrawal phase of their retirement.
Ally CashBack Credit Card
The Ally CashBack Credit Card is a solid rewards credit card, offering cash back on everyday purchases.
Here are the details:
- No annual fee
- Earn unlimited rewards as you shop:
- 2% cash back at gas stations and grocery stores
- 1% cash back on all other purchases
- 10% Ally Deposit Bonus when you deposit your cash rewards into an eligible Ally Bank account
- $100 bonus when you make $500 in eligible purchases during the first three billing cycles
- Pay confidently anywhere Visa is accepted
- Can be added to Apple Pay and Samsung Pay
Auto Loans and Home Mortgages
Ally Financial offers auto loans for personal and business use, along with recreational vehicle (RV) loans.
You can also buy a new home through Ally or use the company to refinance your current mortgage.
The Ally Financial website offers several calculators for both auto and home loans to help you get an idea of how much you can afford, what your payments might be, and more.
It also offers tips for first-time home buyers.
Investment Accounts
One of Ally’s strengths is its investment service, Ally Invest. There are only a few competitors in the brokerage space that have some of its advantages. One of those is a lack of commissions.
Since October 2019, Ally has waived commissions on all U.S.-listed stock, ETF, and options trades.
The broker offers a variety of investment products that you can use. If you want to have hands-on control, Ally Invest Self-Directed Trading account is going to be the best option for you.
There’s no account minimum that you have to meet. And Ally offers a variety of analysis tools and research that you can use to help make the best decisions for your money.
If you don’t want to be directly involved with your investment portfolio, you can open an Ally Invest Robo Portfolio instead.
These accounts automate investing with technology and algorithms. The program will automatically invest your money based on your goals and risk tolerance and provide a cash buffer against stock market downturns.
Best of all, there’s no advisory fee for using an Ally Invest Robo Portfolio. And the minimum investment required is only $100.
Does Ally Bank Have a Business Account?
Ally Bank does not offer business accounts at this time.
We recommend looking for a local bank that offers business accounts if you need to open a business checking or savings account since many business owners need to visit physical branches from time to time.
Some of our favorite business banks with a large national or regional presence include Chase Business Checking (with a large current bonus offer) and Capital One Spark Business, which also has an online savings account with high rates for business savings.
Ally Bank Customer Service
Although you won’t be able to go to a brick-and-mortar branch for in-person customer service, Ally’s customer support availability is better than what you’ll find at most banks.
Ally Bank offers online and 24-hour telephone customer service options:
- Ally Bank telephone number: 1-877-247-ALLY (2559) for 24/7 assistance
- Ally Bank address: Ally Bank, P.O. Box 13625, Philadelphia, PA 19101
- Ally Bank email: [email protected]
Ally Bank Pros & Cons
Pros
- Great Interest Rates. Ally Bank’s interest rates among the best in the nation.
- Full-Service Banking. There are plenty of options for opening an account at Ally Bank. You’ll find checking, savings, CDs, investing, and more
- No Minimum Balance or Monthly Maintenance Fees. Not only does Ally Bank not require a minimum balance to open and maintain an account, but the bank doesn’t charge any pesky maintenance fees, either.
- Access to Allpoint® ATM Network. You can use more than 43,000 ATMs for free
Cons
No Physical Branches. The biggest drawback to Ally Bank is that there are no brick-and-mortar locations if you want to talk to a representative face-to-face.
Conclusion
Simply put, Ally is one of the best options for opening an online bank account. It has just about any financial product that you might need. Plus, it offers some of the highest interest rates in the nation, and all accounts are FDIC insures.
Throw in the no-penalty CDs, money market accounts, lack of fees or minimum deposit requirements, high security ratings, and solid customer service, and you have the recipe for a good bank.
As long as you don’t want a bank with a physical location, Ally could be one of the best options for you.
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George Moy says
You forgot to mention the only downside of Ally Bank is one thing you can’t do is to make a deposit,cash or check at a atm machine even with the newer Allpoint plus atm (the atm that lets you withdraw cash and make deposits anytime) and the funny thing triple A online banking at first takes deposits by mail and mobile deposit, but NO ATM deposit,until they became a allpoint member NOW you can do deposits at any Allpoint ATM (5/3 bank or credit union) and no worries if your deposit is lost in the mail.that’s the only disappointment you can’t do of adding cash to your account.