Ally Bank
Last update:
Ally Bank is a popular online bank headquartered in Sandy, UT. Its parent company, Ally Financial, is headquartered in Detroit, MI.
Ally is known for offering some of the best interest rates on bank accounts and products in the industry, as well as strong customer service. Check out our Ally bank review below to learn more.
Overview
- High interest rates
- $10 ATM fee reimbursement per statement cycle
- No minimum balances or maintenance fees on checking, savings, or CDs
Bank Account Types
| Account Type | Key Features |
| Interest checking | ● 0.10% APY under $15,000 daily balance, 0.25% APY over $15,000 daily balance (time of writing)
● No fees ● Free AllPoint ATM access, $10/statement cycle reimbursement at non-AllPoint ATMs |
| Online savings | ● 0.50% APY (time of writing)
● Separate “buckets” for different savings goals ● Automated savings features |
| Money market | ● No fees
● 0.50% APY (time of writing) ● Open in a trust’s name |
Interest Checking
Ally’s checking account pays interest, which is rare among checking accounts. Granted, you can only earn up to 0.25% in interest with over $15,000 as your minimum daily balance, but this does slow the rate at which your spending money loses value to inflation.
Since Ally is fully online, it lets you use any AllPoint ATM in the US for free to access your checking account. Plus, Ally will reimburse your up to $10 per statement cycle for non-AllPoint ATM service fees.
Ally’s checking account has no monthly fees, either, saving you more money on your banking.
Online Savings
Ally’s online savings account is one of the best in the business. For one, it offers a 0.50% APY, although rates can approach 2% APY when interest rates are on the rise.
Ally recently innovated heavily in the savings account department with several nifty features:
- Buckets: No need to open separate savings accounts for different goals. Ally lets you create “buckets” within your account that enable you to divide your savings among up to 10 preset or customizable goals.
- Round-ups: If you have an Ally Interest Checking account, you can activate round-ups. Ally will track checking transactions and round up purchases to the next dollar. When you reach $5 in round-ups, Ally moves that money to your savings — automating some of the process.
- Surprise savings: Ally’s algorithms learn your spending habits, then scan for “safe-to-save” money and transfer it over. Thus, you can automate saving further without overdraft worries.
Money Market
Ally’s money market account pays the same as its online savings. However, money market accounts let you write checks against them, giving you some flexibility in their use. YOu can do this six times per month, as money market accounts have the same withdrawal restrictions as savings accounts.
Naturally, the money market account comes with a debit card as well.
The money market account comes with the same ATM benefits as the checking account. There are no fees, and you can use the Ally mobile app to deposit checks remotely into any of your accounts.
Ally Bank APYs
| Account type | APY |
| Online Savings | 0.50% |
| High-Yield CD | ● 1-year: 0.55%
● 3-year: 0.65% ● 5-year: 0.80% |
| Raise-Your-Rate CD | ● 2-year: 0.55% (can increase)
● 4-year: 0.55% (can increase) |
| No Penalty CD | ● 11 months: 0.50% |
What is Ally Bank Best For?
- Checking
- High interest
- High-yield savings
- Multiple savings goals
- Low fees
- CD rates
Overdraft Fees
Ally Bank charges a $25 overdraft fee, which is lower than your typical $30-$35 fee. However, Ally only charges you this fee once per day when you overdraw — even if you overdraw several times.
To mitigate overdraft fees, Ally offers overdraft protection if you have an Ally money market or online savings account. If you set up overdraft protection, Ally will move money from one of these accounts in case of an overdraft.
Opening an Account at Ally
Ally’s account-opening process is relatively straightforward.
First, navigate to the product page for the account type you’d like to open and select Open Account.
Ally will then ask you to provide your personal information, then your preferred terms and funding options.
If you’re approved, Ally will send you an approval confirmation email.
You can also apply over the phone or via mail by printing out and mailing Ally’s account application.
Pros and Cons
| Pros | Cons |
| Earn more with excellent APYs | No branches |
| Save more with no monthly maintenance fees | No reimbursement beyond $10/statement cycle of non-AllPoint ATM service fees |
| Mitigate unexpected loss with reduced overdraft fees and overdraft protection | |
| Some ATM fee reimbursement |
Comparison to similar bank accounts
| Axos Bank | Ally Bank |
| Link to review | Link to review |
| APY: 0.61% | APY: 0.50% |
| Minimum balance: $250 to open, none to maintain | Minimum balance: None |
Benefits:
|
Benefits:
|
Disclaimer: Bank products and services are offered by Axos Bank®. All deposit accounts through Axos Bank brands are FDIC insured through Axos Bank. All deposit accounts of the same ownership and/or vesting held at Axos Bank are combined and insured under the same FDIC Certificate 35546. All deposit accounts through Axos Bank brands are not separately insured by the FDIC from other deposit accounts held with the same ownership and/or vesting at Axos Bank. For more information read our FDIC Notice. Axos Bank NMLS# 524995