Ally Bank Review: Competitive Rates for Online Customers
GOBankingRates Score
Ally Bank
-
Checking Account
4.9
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Savings Account
5.0
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CD Account
4.8
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Banking Experience
4.9
Pros
- Above-average interest rate on savings account
- No monthly maintenance fees or minimum opening balance requirements
- Access to over 43,000 Allpoint ATMs in the U.S.
Cons
- No direct cash deposits
- No branches available
- Withdrawals can take several days
- Some APY rates have daily minimum balance requirements
Ally Bank Overview
Ally Bank is an online-only financial institution that considers itself an alternative to traditional b The Chase Total Checking account offers access to 16,000 ATMs and more than 4,700 branches, as well as debit-card chip technology protection and 24/7 customer service. You also get online bill pay and mobile banking. rick-and-mortar banks, though Ally itself dates back to when many people still relied on horses to get around. Its predecessor was launched in 1919 as GMAC, the financing division of General Motors.
More recently, Ally Bank has established itself as one of the best online banks, with exceptional customer service, high annual percentage yields and low fees. With an overall score of 4.9 out of 5, Ally Bank is one of the best performers of all the banks surveyed by GOBankingRates and was named the Best Online Bank of 2023. It has won this distinction several years in a row.
Key Features
Ally Bank earned its top score with its checking, savings and CD accounts, as well as its banking experience for customers. Here’s why.
Ally Checking Account
Ally’s interest checking account is much less restrictive than its savings and money market offerings. GOBankingRates has ranked it as one of the Best Checking Accounts of 2023. Interest is compounded daily, and there are no monthly maintenance fees, minimum opening deposit or minimum balance requirements. Free standard checks and a debit card come with the account. Customers also have access to mobile check deposits, as well as the Allpoint ATM network.
The APY for Ally’s checking account is for a minimum daily balance of less than $15,000. That jumps to for a minimum daily balance of $15,000 or more.
On the downside, Ally doesn’t have physical branches, so it’s not the best option if you prefer in-person service.
Ally Savings Account
A high APY and lack of monthly maintenance fees make Ally’s online savings account one of the industry’s better options. GOBankingRates ranked it among the Best Online and Neobank Savings Accounts of 2023. With the account’s Smart Savings tools, customers can use buckets to organize their money and visualize what they’re saving for, set up boosters to optimize and maximize savings and make changes as their priorities change.
Savings account customers can expect no minimum deposit or balance requirements, no monthly maintenance fees and free cashier’s checks. Interest is compounded daily. The APY on savings deposits is on all balance tiers.
Money Market Account
Ally Bank’s money market account works like a combination savings and checking account, with high interest rates like the former and spending flexibility like the latter. It features an APY of on all balance tiers and offers instant access to cash via ATMs.
As with the checking and savings accounts, Ally’s money market account has no monthly fees, no minimum deposit or balance requirements and interest that is compounded daily. Customers get access to the Allpoint ATM network, as well as a debit card and free standard checks.
Just keep in mind that the account is limited to six non-ATM withdrawals per statement cycle, and a $10 charge applies for each additional withdrawal during the statement period.
Ally CD Accounts
Ally offers various rates and terms for its certificates of deposit that range from three months to five years, depending on which CD you choose. Some CDs can be easily liquidated, whereas you can earn higher interest with more standard options. GOBankingRates has ranked Ally’s CD offerings among the Best CD Accounts of 2023.
Interest on all CDs is compounded daily, and you can renew the accounts when they mature. With Ally’s 10-day best-rate guarantee, you can get the best rate for your balance and term if you fund your CD within 10 days of your opening date and the rate rises during that period.
For high-yield CDs, terms range from three months to five years, at rates ranging from APY to APY. Raise Your Rate CDs come in two- and four-year terms, with an option to increase the rate once during the two-year term and twice during the four-year term.
Ally also offers a No Penalty CD at a rate of APY with an 11-month term. Complete withdrawal of funds is available after the first six days following the date you funded your CD, and you can keep the interest earned.
Banking Experience
Ally’s overall customer experience is highly positive. If you wondered how Ally Bank earned its GOBankingRates score, here’s a quick breakdown:
- Interest Rates: Ally earned high marks for its competitive annual percentage yields, which rank among the best in the business.
- Customer Service: Ally has made a name for itself in the banking industry for its attention to customer service, and that’s reflected in how it stacks up against the competition. Ally ranked first among banks surveyed by GOBankingRates in two important categories: service via live chat with a person and 24/7 phone customer service.
- Services and Accessibility: Ally Bank also scores well in terms of digital accessibility. It ranked first among banks surveyed by GOBankingRates in both the quality of its mobile app and remote check deposits. Its app got a rating of 4.7 on the App Store and 3.9 on Google Play.
- Fees: You’ll never pay fees for monthly maintenance, domestic or international incoming wires, cashier’s checks, standard or expedited ACH transfers or standard checks for interest checking and money market accounts. Outgoing domestic wires carry a $20 fee, and you might face a $25-per-hour account research fee if you request extensive research on transaction histories.
Comparable Online Banking Options
All banks have their strengths. Here’s a quick look at Ally’s strong points as compared to its competitors.
Ally Bank vs. Capital One
Capital One has the advantage of in-branch services, whereas Ally is an online-only bank. Ally does have an edge in terms of interest rates, offering up to APY on its checking account vs. the APY offered by Capital One.
Ally Bank vs. Discover
One of the big advantages Discover has over Ally is its credit card line. At Discover, you can keep all your accounts at one institution. Ally offers higher yields and both self-directed and automated investing — something not available at Discover.
Ally Bank vs. Chime
Ally and Chime®* are both digital-only banking options that offer a high APY for savings accounts1. Ally’s product lineup is much more extensive than Chime’s, but Chime’s ATM network is bigger, with access to more than 60,000 fee-free ATMs2.
Final Take
Most banking today is done online, and Ally Bank offers a 21st-century banking experience that includes a full suite of products and services. GOBankingRates has ranked Ally Bank as the Best Online Bank for 2023. Ally Bank is best for those seeking high interest rates and who don’t want a minimum balance requirement to open a checking or savings account. It’s easy to open a new account with Ally.
Even if an online-only bank isn’t entirely appealing to traditional bank customers, some might be swayed by Ally’s competitive APY rates and 24/7 customer service and give the bank a chance.
More on Ally Bank
- Ally Bank Review
- How To Avoid Ally Bank’s Monthly Maintenance Fees
- Newest Ally Bank Promotions
- Ally Bank Holiday Hours
- Ally Bank Interest Rates
- Ally Bank Routing Number
- Ally High-Yield Savings Account Review
- Ally vs. Capital One 360
- Ally vs. SoFi
Compare to Other Banks
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Ally Bank FAQ
Here are the answers to some of the most common questions about Ally Bank and its products and services.- Is Ally Bank a reputable bank?
- Ally Bank has been ranked by GOBankingRates as the best online bank for the last several years. It continues this streak by once again being named the Best Online Bank for 2023.
- What are the disadvantages of Ally Bank?
- Ally Bank has no physical locations, so you cannot do any in-person banking, which makes it not ideal for transactions such as cash deposits.
- Can I trust Ally?
- Yes. Ally Bank deposits are protected by the Federal Deposit Insurance Corp. up to $250,000 per depositor for each qualifying account category.
- Is Ally Bank a bank?
- Ally Bank is a completely online bank, so though it doesn't have any branches, it offers the same rights and protections as a brick-and-mortar bank.
- Which is better, Chime or Ally?
- Though Chime has a larger ATM network, Ally Bank has a more extensive product lineup.
Cynthia Measom and Caitlyn Moorhead contributed to the reporting for this article.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of March 27, 2023.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
*Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.
1The annual percentage yield (APY) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of Nov. 17, 2022. No minimum balance required. Must have $0.01 in savings to earn interest.
2Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.
To determine rankings for the Best Online Banks, GOBankingRates looked at the following factors across exclusively online banks: (1) total assets as sourced from the FDIC; (2) monthly checking fee ratio (percentage based on the minimum to avoid the fee compared to the monthly fee itself); (3) savings APY; (4) 1-year CD APY; (5) customer service options and mobile products offered (24/7 customer service, live chat with a human, mobile app and remote check deposit); (6) Bauer rating (out of 5 stars); (7) products/services offered (auto loans, mortgage loans, credit cards, investment services and insurance); and (8) the average mobile app rating between the Android and Apple app stores. Factors (1) and (2) were weighted 0.5 times, and factors (3) and (7) were weighted 2 times. For all savings and checking account data, only the basic accounts/products offered at each institution were analyzed.
To determine rankings for the Best Checking Accounts, GOBankingRates looked at the following factors from all banks (excluding credit unions): (1) total assets as sourced from the FDIC; (2) number of branch locations as sourced from the FDIC; (3) minimum deposit to open an account; (4) monthly checking fee ratio (percentage based on the minimum to avoid the fee compared to the monthly fee itself); (5) APY on the checking account; (6) overdraft fee amount; and (7) the average mobile app rating between the Android and Apple app stores. All factors were then scored and combined, with the lowest score being best. Factors (1), (2 and (5) were weighted 0.5 times, and factor (4) was weighted 1.5 times.
To determine rankings for the Best Online Bank and Neobank Savings Accounts, GOBankingRates looked at the following factors from all online banks and neobanks: (1) total assets as sourced from the FDIC; (2) minimum deposit to open an account; (3) monthly savings fee ratio (percentage based on the minimum to avoid the fee compared to the monthly fee itself); (4) minimum balance needed in account to earn APY; (5) savings APY; and (6) the average mobile app rating between the Android and Apple app stores. All factors were then scored and combined, with the lowest score being best. Factor (1) was weighted 0.5 times, factor (4) was weighed 1.5 times and factor (5) was weighted 3 times.
To determine rankings for the Best CD Accounts, GOBankingRates looked at the following factors from all banks (excluding credit unions): (1) total assets as sourced from the FDIC; (2) number of branch locations as sourced from the FDIC; (3) minimum deposit to open an account; (4) 12-month CD APY; (5) 60-month CD APY; and (6) the average mobile app rating between the Android and Apple app stores. All factors were then scored and combined, with the lowest score being best. Factors (1) and (2) were weighted 0.5 times, factor (3) was weighted 2 times, and factors (4) and (5) were weighted 4 times.
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