In 2010, GMAC Bank was officially rebranded, and Ally Bank was born. Within two years, Ally had over 1 million customer accounts and continued to grow due to benefits such as high-quality customer care, impressive Ally Bank interest rates and a user-friendly online interface. But you won’t find any physical branches: Ally is an online-only bank, which allows it to offer competitive rates on a variety of account offerings while keeping your money safe. With the excellent benefits Ally offers, it’s no wonder GOBankingRates rated it as the best online bank of 2017.
Ally Bank Review
Ally built its reputation on minimizing overhead costs to offer the highest interest rates to customers, but that doesn’t mean it skimped on its online services. You can keep tabs on your money and review all of your accounts seamlessly using your phone, tablet or computer. And because Ally is branch-free, you can keep more of your money in your bank account by using one of the bank’s 400,000 fee-free ATMs or get up to $10 back per month for using non-network ATMs.
Plus, the bank’s commitment to customers goes beyond its high Ally Bank rates and low fees with a commitment to security. Ally guarantees that you won’t be liable for any unauthorized online or mobile purchases as long as you report them within 60 days of your statement. The bank provides free Webroot SecureAnywhere software for up to three devices for all customers. And for those who want to invest, Ally offers investment services that allow you to buy and sell stocks and exchange-traded funds for just $4.95 per trade, and high-volume traders can trade for even less.
Ally Bank Products and Services
Ally offers a range of online bank accounts and lending services so you can have an online savings account, an online checking account, and certificates of deposit with the same bank. All Ally Bank accounts are protected by FDIC insurance, so even though the bank doesn’t have any branches, all of your accounts are covered by the same protection as traditional brick-and-mortar banks.
Most Ally savings accounts and the free checking account that pays you interest have no monthly maintenance fees, so you don’t have to worry about keeping your balance above a certain threshold to avoid getting dinged. Ally pays 1.85% APY on savings accounts, 0.90% APY on money market accounts and 0.10% APY on checking accounts — which jumps to 0.60% APY if you have more than a $15,000 daily minimum balance.
Plus, Ally Bank CD rates are among the highest in the country. For example, you could earn 2.10% APY on an 11-month CD with less than $5,000 and 3.00% APY on a five-year CD with the same amount.
Ally Bank also offers its own credit card that gives you cash back — plus a 10 percent bonus if you deposit it into an Ally Bank account. You can also get a competitive rate on a fixed or adjustable-rate mortgage or auto loan, as well as invest your money for the future. Note that to find out about Ally’s car financing offers, you’ll need to see your local auto dealer to review current rates.
Pros and Cons of Ally Bank
Ally’s online platform allows it to offer high interest rates to customers, which is a big benefit if you’re comfortable managing your finances with internet banking. Ally also offers convenient 24/7 telephone customer service with U.S. or Canadian representatives and average wait times of less than one minute. But if you’d rather be able to visit a physical branch and speak to a representative face-to-face, Ally won’t be able to deliver.
When it comes to rates, Ally believes in full transparency. The bank shows what its competitors are offering on its website, so you can review them and make sure you’re getting the best interest rates available.
Is Ally a Good Bank for You?
Ally Bank is a great option if you’re comfortable with online-only banking. You can have all of your accounts, credit cards, mortgages and car loans at one institution to simplify your financial life. Plus, Ally’s competitive rates will help your money grow faster than many banking alternatives.
But if you rely on face-to-face interaction and advice, and a phone call just won’t do it, you might be willing to sacrifice a higher interest rate for more personal service.
Rates are accurate as of today.