Everything You Need To Know To Open an Ally Bank Account

As an online bank, Ally can offer higher rates on its accounts.

Ally Bank is an award-winning, online-only financial institution that services nearly 2 million customers holding over $120 billion in total deposits. Thanks to its high savings interest rate, range of no-fee banking products and 24/7 customer service, Ally was named one of the Best Online Banks of 2020 by GOBankingRates.

If you’re interested in opening one of Ally’s bank accounts, take a look at the following guide:

How To Open an Ally Bank Account

Ally claims that you can open an account within five minutes. Visit the Ally Bank website and select the “bank” drop-down menu in the top navigation bar. Find the product page for the account that you’re looking to open, and click on the “open new account” button.

Here’s the personal information you’ll need to provide to open an Ally Bank account:

  • A Social Security number or tax identification number
  • A U.S. residential street address
  • Legal name
  • Birthdate (you must be age 18 or older)

Choose how you’re going to fund your new account and the terms you prefer, if applicable. Once Ally approves your application, you’ll receive a notification via email.

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Learn: How To Open a Bank Account Online

If you don’t feel comfortable providing your information online for whatever reason, there are two more ways you can open an Ally Bank account:

  • To apply via phone, call 1-877-247-2559. Customer service is available 24/7, so you can get help with your account whenever you need it.
  • To apply by mail, download the application form (under the “Forms” section) for the account that you’re looking to open, and then mail the completed form to the address listed on the application.

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Ally Bank Account Options

Ally Bank offers a full suite of products, from savings, checking and money market accounts to CDs and individual retirement accounts. Below is a brief overview of the account offerings that help make Ally one of the top online banks.

Related: Best Online Banks of 2020

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Online Savings Account

The annual percentage yield on Ally’s Online Savings Account is 0.80%, which beats the national average of 0.09% by a wide margin. In addition to having a competitive interest rate, this savings account charges no monthly maintenance fees and doesn’t require a minimum balance. Interest is compounded daily, and your money is insured up to $250,000 by the Federal Deposit Insurance Corp.

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The Online Savings Account also comes with helpful tools, such as the ability to use “buckets” — like digital envelopes — to organize your savings. Note that you can only make six withdrawals from your account during each statement cycle, which is mandated by federal law.

Related: Best Online Savings Accounts for Earning High-Yield Profits

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Interest Checking Account

Ally’s Interest Checking Account boasts a 0.25% APY, though the interest rate varies depending on your daily balance. Accounts with $15,000 or more will earn significantly more interest. There’s a $0 minimum opening deposit and no monthly maintenance fees, and your money is FDIC-insured up to $250,000.

If you’re concerned about opening a checking account with an online-only financial institution, know that Ally allows you to deposit checks remotely from your smartphone and use any Allpoint ATM for free. The bank will also reimburse ATM fees up to $10 per statement cycle, which is helpful in a cash emergency.

Don’t Miss: Best Ally Bank Promotions and Offers

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Money Market Account

All balance tiers under Ally’s FDIC-insured Money Market Account earn a 0.50% APY, which is remarkably higher than the national average of 0.16%. You don’t need to worry about monthly maintenance fees or a minimum opening deposit with this account. Plus, you can deposit checks remotely and use any Allpoint ATM without charge, though reimbursement for ATM fees up to $10 per month is available. While you’re allowed to make unlimited ATM withdrawals from your Money Market Account, you’re capped at six additional transactions per statement cycle.

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Certificates of Deposit

You can pick from multiple FDIC-insured CDs with different term lengths at Ally Bank:

  • The High Yield CD offers terms ranging from three months to five years, and it advertises maximum savings with a fixed rate. For example, the 12-month High Yield CD account has a 0.75% APY. This CD is also available as an IRA.
  • The Raise Your Rate CD provides two-year and four-year options, with an opportunity to increase your initial rate once during the two-year term and twice during the four-year term if Ally’s rate on these CDs increases. The Raise Your Rate CD can also be opened as an IRA.
  • The No Penalty CD has one available term at 11 months. The APY varies depending on your opening deposit, with the highest interest rate awarded to balances of $25,000 or higher. Like the name implies, you have flexibility prior to the CD’s maturity date. After funding your account and waiting for six days, you can withdraw your money at any time and keep the interest without incurring a penalty.

Ally Bank Review: Competitive Rates for Online Customers

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IRA Online Savings Account

This account provides FDIC insurance and the tax benefits of an IRA without the riskiness of the market. All balance tiers under Ally’s IRA Online Savings Account earn a 0.80% APY, and interest is compounded daily. You can make unlimited deposits and up to six additional transactions per statement cycle — and there are no monthly maintenance fees or minimums to open an account. Options for traditional, Roth and simplified employee pension IRAs are available.

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More on Ally Bank

More on Opening Bank Accounts

Rates are subject to change. All other information on accounts is accurate as of Feb. 7, 2020.

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About the Author

Grace Lin

Grace joined the GOBankingRates team in 2017 with an editorial background in print journalism and magazines. Prior to editing and writing for GOBankingRates, Grace pitched books and movies from Renaissance Literary & Talent, a literary agency and management firm representing clients such as the estate of Audrey Hepburn, Kirk Douglas, Goldie Hawn and Heidi Murkoff of the “What to Expect When You’re Expecting” series.

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