The benefits explained

  • No monthly fees on deposit accounts – Ally charges no monthly maintenance fees on its online savings, verifications, Money MarketWhere certificate of deposit (CD) accounts.
  • High rate on savings accounts and CDs – Ally’s online savings account earns 1.60% annual percentage yield (APY), a higher interest rate than many traditional banks. Its penalty-free CD account option also offers better rates than CDs from most physical banks.
  • No balance requirement – None of Ally’s bank accounts have minimum balance requirements.
  • Large network of free ATMs – Ally customers have access to over 43,000 free AllPoint ATMs across the United States


Disadvantages Explained

  • No physical location – As an online-only bank, customers do not have access to in-person services from local bank branches. If you prefer a traditional banking service, you’ll have to look elsewhere.
  • No cash deposit – Ally does not accept traditional cash deposits. Your only options are remote check deposit, online transfers, direct deposit, Bank transfersand sending a check by mail.
  • Low rates on money market accounts – Ally’s money market account does not offer competitive rates in the same way as other major online banks.


Who is Ally Bank for?

Ally Bank should appeal to people looking for a full-service online bank. It is a solution particularly suitable for consumers who wish to:

  • Earn competitive rates on savings accounts and CDs
  • Have access to ATMs without paying fees
  • Bank worry-free of minimum balances and monthly fees
  • Contact a real customer service representative 24/7


What does Ally Bank offer?

As a full-service online bank, Ally offers a variety of banking accounts and services.

  • Savings account
  • Current account
  • Money market account
  • CD

Savings account

Ally’s online savings account is a high yield savings account which offers 1.60% APY regardless of your account balance. Having an online savings account is a great way saving money to achieve financial goals. Other savings account highlights include:

  • No monthly maintenance fees
  • No minimum balance requirement
  • Postage-paid deposit envelopes
  • Automatic recurring transfers (to accelerate savings)

Ally’s online savings accounts are subject to federal withdrawal limits. Certain withdrawals and transfers are limited to a combined total of six per statement period. Ally Bank charges a fee of $10 per transaction over the limit.

Ally Bank Savings Accounts
Account name Minimum opening deposit Monthly fee APY
Online savings $0 $0 1.60%

Current account

Ally offers a way to earn interest with its current interest account. There are no minimum opening deposit or outstanding balance requirements, but rates are based on your account balance.

  • Minimum daily balances below $15,000 – 0.10% APY
  • Minimum daily balances of $15,000 and above – 0.25% APY

Ally’s online checking accounts come with a free debit card and checks, plus free access to AllPoint ATMs across the United States. Ally Bank also reimburses up to $10 per statement period for other ATM fees.

Interest Checking Accounts allow Ally customers access to free online bill payment features.

Ally Bank Interest Verification
Account name Minimum opening balance Monthly fee APY
Verification of interests $0 $0 0.10% if
< $15,000

0.25% if
$15,000+

Money market account

Ally’s money market account offers better rates than traditional banks, but they’re similar to other online banks. All balances currently earn an APY of 1.60%.

Money market accounts have no minimum opening deposit or monthly fees. Guests also have free access to a debit card and the AllPoint ATM network. Ally even reimburses out-of-network ATM fees, up to $10 per statement cycle. There is no limit on ATM withdrawals, but there is a limit of six additional monthly transactions, with a $10 fee for each transaction over the limit. Check writing privileges also come with Ally Money Market accounts.

Ally Money Market Accounts
Account name Minimum opening deposit Monthly fee APY
Money Market $0 $0 1.60%

CD

Ally Bank offers three different CD offers:

  • high performance CDs
  • Increase your CD rate
  • CD without penalty

high performance CDs offer a range of terms from three months to five years. Customers can earn up to 2.90% APY based on terms chosen. There is no minimum deposit requirement and there are no monthly fees. Early withdrawals are subject to penalties, up to 150 days interest.

Ally Bank High Yield CDs
Term APY
3 months 0.75%
6 months 1.25%
9 months 1.50%
12 months 2.30%
18 months 2.50%
20 months 2.55%
24months 2.25%
36 months 2.70%
48 months 2.25%
60 months 2.90%
(As of August 10, 2022)

Raise Your Fare CDs allow customers to increase their revenue if Ally’s fares increase. You can increase your rate once for two-year CDs and twice for four-year CDs. Currently, the rates for these CDs are at 2.00% APY. There are no monthly maintenance fees charged and there is no minimum opening deposit requirement. Raise Your Rate CDs are also subject to early withdrawal penalties, up to 150 days interest.

Ally Bank Increase Your CD Rate
Term APY
Two years 2.25%
Four years 2.25%

CD without penaltywho earn up to 1.60% APY. Account holders are free to withdraw interest and principal funds at any time, starting six days after an account is funded, without penalties. All No Penalty CDs have an 11 month term, no minimum opening deposit requirement and no monthly fees.

CD Ally Bank without penalty
Term Balance APY
11 months Less than $5,000 1.60%
11 months $5,000 to $24,999 1.60%
11 months $25,000+ 1.60%


Other financial products offered by Ally Bank

Ally Bank also offers a wide range of other products and services:

  • Car loans
  • Buy mortgages
  • Refinance mortgages
  • Individual Retirement Accounts (IRA)
  • Autonomous negotiation
  • Managed investment portfolios


Ally Bank Customer Service

Ally Bank offers several ways to get help when needed. Phone support is available 24 hours a day, seven days a week. Customers can also log into their online account to send secure messages.

For immediate service, Ally also offers chat support through its website. You can also send general correspondence by mail to:

Ally Bank Customer Service
Box 951
Horsham, Pennsylvania 19044


How to Bank with Ally Bank

To open an account with Ally Bank, you can apply online at Ally.com. You will need to choose the account option you want, enter personal information, and then choose your funding option. Ally will email you if and when your account is approved. Ally Bank also offers options to open an account by telephone 24/7 or by downloading an application form and sending it by post.

Verdict

Ally Bank offers comprehensive online banking services for customers who wish to earn a higher APY than found at a local bank. If in-person banking isn’t a requirement, choosing Ally gives you the opportunity to accumulate savings faster with generally competitive rates. Although its money market and checking accounts don’t offer spectacular rates, overall, Ally Bank delivers. It offers enough options to meet the needs of most people looking for a top-notch online bank.


Methodology

Investopedia is dedicated to providing consumers with unbiased and comprehensive bank reviews. We’ve collected over 20 data points from over 80 banks, including available products, interest rates, fees and affordability, to ensure our content helps users make the right decision for their savings and banking needs.



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