Ally Financial is one of the internet’s industry leaders for both investing and banking, thanks to the brokerage platform Ally Invest (formerly TradeKing) and the online-only Ally Bank.
Whereas many other online banks offer only savings accounts and CDs, Ally Bank offers a full suite of banking services.
You’ll find an interest-bearing checking account, an online savings account that offers some of the highest interest rates in the country, money market accounts, CDs, loans, investments, credit cards, and more.
In this review, we’ll cover these products and services, as well as the pros and cons of opening an Ally Bank account.
Ally Bank Review
- Products & Services
- Interest Rates
- Fees & Charges
- Website / App
- Customer Service
When it comes to Products & Services, Ally Bank’s lengthy list of options is hard to beat. Unlike some other online-only options, Ally Bank is a full-service financial institution. The icing on the cake is Ally Bank’s Interest Rates, which are consistently among the highest in the nation. With hardly any Fees & Charges, Ally Bank keeps getting better and better. The Website/App is easy to use, and you can contact Customer Service 24/7. The one downside is that there are no local Ally Bank branches where you can go for help.
Ally Bank Features
With one of the best high-yield savings accounts in the nation, along with interest-paying checking accounts and attractive rates across the board — not to mention a lack of fees — Ally Bank has become one of the most popular online banks in the U.S.
|Banking Account Types||Checking, Savings, Money Markets, CDs|
|Other Account Types||Credit Cards, Auto Loans, Home Loans, IRAs, Investments through Ally Invest|
|Minimum Required Deposit to Open Account||$1|
|Number of Branches||Internet Only|
|ATM Network Size||Allpoint® ATM network|
|ATM Reimbursements||Yes, up to $10 per statement cycle for fees charged at other ATMs nationwide|
|App Availability||iOS, Android, Amazon Apps, Windows Phone, and Mobile Optimized Website|
|Person to Person Money Transfers||Apple Pay®, Google Pay™, Samsung Pay™, Masterpass™, Microsoft Wallet|
|Money Transfers||ACH, Wire Transfers, Zelle®|
|Customer Service Types||Phone, Live Chat, Email|
|Customer Service Hours||24/7|
|Member FDIC||FDIC Certificate #57803|
|Routing Number / ABA Number||#124003116|
|Current Promotions||No current promotions|
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Ally Bank Financial Products & Services
Ally Bank has come a long way in the last few years. Initially, the bank focused mainly on high-interest savings accounts and certificates of deposit.
Since then, Ally Financial has added several different products and services and become a full-service online financial institution.
Ally now offers:
- Savings products and IRAs
- Interest checking
- Ally CashBack credit card
- Auto loans and home mortgages
- Brokerage and robo-advisor services
- Tools and educational content
Here’s a brief overview of the products and services Ally offers.
Ally Bank Savings Accounts, Money Markets, and CDs
Ally Bank offers five main savings products:
Online Savings Accounts. Ally’s interest rates are currently among the highest in the nation (see additional savings account rates). There are no minimum balances, no account opening minimums, and no maintenance fees.
Money Market Accounts. Ally Bank money market account holders have access to a check card with free ATM transactions, but there’s a limit of six withdrawals per month (according to the Federal Reserve’s rule).
Classic CDs. Ally offers certificates of deposit (CDs) of varying lengths and interest rates. I recommend visiting the Ally Bank CD page for more information about current rates. You can also compare CD rates on our site.
No-Penalty CDs. One of the features that sets Ally Bank’s CDs apart from the CDs at other banks is the no-penalty certificate of deposit. The no-penalty CD allows you to lock in an interest rate while still having the option to withdraw your funds without any penalties. The downside is that the no-penalty CD rates are slightly lower than the traditional CD rates. But they’re also higher than standard interest rates, so you have a chance to earn more interest than with a savings account. This gives people flexibility in the event of an emergency or if they decide to withdraw their funds because rates rise and they can lock in a better rate.
IRAs. The IRAs offered by Ally Bank are primarily savings vehicles, featuring certificates of deposit or fixed rates of return. While I generally recommend opening an IRA with the intent of long-term growth, housing a certificate of deposit in an IRA can be a good strategy for those on a fixed income or those who are in the withdrawal phase of their retirement.
Ally Bank Interest Checking
In today’s banking environment, it’s becoming more common for banks to charge you for a checking account instead of paying you to use your checking account.
Ally Bank is one of the exceptions, offering an Interest Checking Account that pays more interest than most banks pay on their savings accounts. The Ally Bank Interest Checking Account is among the best free online checking accounts in the nation.
Every Ally Bank checking account comes with online and mobile banking services, a debit MasterCard® with EMV chip technology, standard checks, online bill pay, and postage-paid deposit envelopes.
You can also deposit checks remotely with Ally eCheck Deposit.
As with the Ally Bank savings account, there are no monthly minimums or maintenance fees.
Members have access to the Allpoint® ATM network in the U.S. for free, plus Ally Bank reimburses up to $10 per statement cycle for fees charged at other ATMs nationwide.
Ally CashBack Credit Card
The Ally CashBack Credit Card is a solid rewards credit card, offering cash back on everyday purchases.
Here are the details:
- No annual fee
- Earn unlimited rewards as you shop:
- 2% cash back at gas stations and grocery stores
- 1% cash back on all other purchases
- 10% Ally Deposit Bonus when you deposit your cash rewards into an eligible Ally Bank account
- Pay confidently anywhere Visa® is accepted
- Can be added to Apple Pay® and Samsung Pay™
Ally Financial – Auto Loans and Home Mortgages
Ally Finance offers auto loans for personal and business use, along with recreational vehicle (RV) loans.
You can also buy a new home through Ally or use the company to refinance your current mortgage.
The Ally Financial website offers several calculators for both auto and home loans to help you get an idea of how much you can afford, what your payments might be, and more.
It also offers tips for first-time home buyers.
Ally Invest – Discount Brokerage and Managed Investment Services
Since October 2019, Ally has waived commissions on all U.S.-listed stock, ETF, and options trades.
The broker offers a variety of investment products that you can use. If you want to have hands-on control, Ally Invest Self-Directed Trading account is going to be the best option for you.
There’s no account minimum that you have to meet. And Ally offers a variety of analysis tools and research that you can use to help make the best decisions for your money.
If you don’t want to be directly involved with your investment portfolio, you can open an Ally Invest Cash-Enhanced Managed Portfolio instead.
These accounts automate investing with technology and algorithms. The program will automatically invest your money based on your goals and risk tolerance and provide a cash buffer against stock market downturns.
Best of all, there’s no advisory fee for using an Ally Invest Cash-Enhanced Managed Portfolio. And the minimum investment required is only $100.
The Drawback of Investing With Ally
The biggest drawback of opening an account with Ally Invest is its lack of no-fee mutual funds.
There are more than 12,000 mutual funds that you can choose from, but none of them are fee-free, as you can find at some other brokerages.
While Ally has some of the lowest mutual fund trading fees, at $9.95, it might be a better option to find a brokerage that will offer no-fee mutual funds.
Ally Bank Tools & Education
The Ally Bank website does a great job of breaking down financial topics to help educate customers.
In fact, there’s an entire section on the site devoted to financial education. The topics are broken down by stage of life — for example, getting started, getting married, budgeting, saving for a major purchase, preparing for retirement, and more.
Ally also offers a variety of financial tools, including calculators, education, investing tools, and a blog.
Overall, I would rate the website as one of the most user-friendly when it comes to consumer education.
Opening an Account at Ally Bank
Opening an account at Ally Bank is a quick and relatively painless process (as painless as opening any financial account nowadays).
Be prepared to have your personal information ready, and be aware that you’ll have to submit to a credit check when you apply.
Unlike some banks, Ally Bank approves applications based on credit risk, so your creditworthiness may affect your ability to open an account.
When you open your account you also have the option of simultaneously opening CDs or a money market account, which is a nice feature.
Ally Bank Customer Service
I haven’t had to use Ally’s customer service yet, but the support availability is better than what you’ll find at most banks.
Ally Bank offers online and 24-hour telephone customer service options:
- Ally Bank telephone number: 1-877-247-ALLY (2559) for 24/7 assistance
- Ally Bank address: Ally Bank, P.O. Box 13625, Philadelphia, PA 19101
- Ally Bank email: [email protected]
Other Features at Ally Bank
- Ally Bank offers an easy-to-use interface
- Each Ally Bank account is FDIC insured up to $250,000
- Ally Bank supports Quicken, Mint.com, Personal Capital, and a host of other online money management tools
- Customers have the ability to choose paper or electronic statements
- You can create sub-accounts with different names and account numbers (great for targeted savings, or setting up a child’s account)
- There’s a high level of online security — if you try logging on from a computer that isn’t registered with Ally Bank, you’ll receive an email with a password good for one use (unless you wish to register the computer)
Frequently Asked Questions:
Does Ally Bank have a business account? No, Ally Bank does not offer business accounts at this time.
We recommend looking for a local bank that offers business accounts if you need to open a business checking or savings account since many business owners need to visit physical branches from time to time.
Some of our favorite business banks with a large national or regional presence include Chase Business Checking (with a large current bonus offer) and Capital One Spark Business, which also has an online savings account with high rates for business savings.
Does Ally Bank currently offer a signup bonus? Not at this time. Ally Bank offers great interest rates and many excellent features.
I would sign up for an Ally Bank account even without a signup bonus.
That said, we do have a list of banks with lucrative signup bonuses if you’re looking to score some extra cash.
Ally Bank – Advantages & Disadvantages
- Interest rates among the best in the nation
- Full-service banking – checking, savings, CDs, investing, and more
- No minimum balance or monthly maintenance fees
- Access to Allpoint® ATM network, featuring more than 43,000 free ATMs
- No physical branches
Ally Bank offers some of the highest interest rates in the nation, and all accounts are FDIC insured.
Add the no-penalty CDs, money market accounts, lack of fees or minimum deposit requirements, high security ratings, and solid customer service, and you have the recipe for a good bank.
If you’re looking for a new bank or higher interest rates, Ally Bank is a worthy option.
Simply put, Ally is one of the best options for opening an online savings account. It has just about any financial product that you might need.
As long as you don’t want a bank with a physical location, Ally could be one of the best options for you.
If you want a bank that will allow you to save your money, invest it, or just have an account with any hidden fees, then Ally Bank is the place to go.