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Ally Bank: Overall Rating

Ally Bank: Pros and Cons

Ally Bank Personal Banking Review

Ally Savings Account

Ally Savings Account

Insider’s Rating

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

4.75/5

Icon of check mark inside a promo stamp It indicates a confirmed selection.

Perks

Earn 4.25% Annual Percentage Yield with a $0 minimum account opening requirement


Fees

no monthly service fee


Annual Percentage Yield (APY)

4.25%


Minimum Deposit Amount

$0

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. High APY
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum opening deposit
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly service fees
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Savings buckets help you save for different goals
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Surprise savings transfers help you save extra money from your checking account
Cons

  • con icon Two crossed lines that form an ‘X’. No physical branch locations
  • con icon Two crossed lines that form an ‘X’. No way to deposit cash


Insider’s Take

The Ally High Yield Savings Account is a great option for anyone who wants savings tools to help save for specific financial goals, or prioritizes an account that doesn’t charge standard bank fees. You may earn 4.15% APY, and the account doesn’t have any requirements for earning interest. However, keep in mind that the best high-yield savings accounts pay up to 5.50% APY right now.

Ally Savings Account
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Product Details

  • Create separate savings buckets in a savings account
  • Link to your Ally checking account and enroll in surprise savings transfers to have extra money transferred to savings three times per week
  • Interest compounded daily, paid monthly
  • FDIC insured

Ally is a good option if you’re looking for a savings account that doesn’t require a minimum opening deposit. 

Ally also makes it easy to save for specific goals. Assign each account a nickname, like “Emergency Fund” or “Travel Account” to track your progress and stay motivated. You may decide to open a separate account for each goal, but Ally has a bucket feature that allows you save for multiple goals in one account.

See Insider’s Ally Savings Account Review >>

Ally Spending Account

Ally Spending Account

Ally Ally Spending Account

Insider’s Rating

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

4.75/5

Icon of check mark inside a promo stamp It indicates a confirmed selection.

Perks

Earn a $200 bonus after using code “GET200” and making a direct deposit of $1,500 or more within 90 days (offer ends 11/30/2023)


Fees

no monthly service fee


Annual Percentage Yield (APY)

0.10% to 0.25%


Minimum Deposit Amount

$0

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Spending buckets to manage expenses
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive APY
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No initial deposit
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum account balance
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly service charge
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Connect your account with Zelle
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Easy-to-use mobile app
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Early direct deposit
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Reimburses up to $10/month in out-of-network ATM fees
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Online bill pay
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. 24/7 customer service
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No overdraft fees
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Overdraft protection
Cons

  • con icon Two crossed lines that form an ‘X’. No physical branch locations
  • con icon Two crossed lines that form an ‘X’. No way to deposit cash


Product Details

  • You can deposit checks right from your smartphone
  • Manage expenses by creating spending buckets
  • Ally reimburse’s up to $10 per statement cycle for fees charged at other ATMs nationwide
  • Transfer money with your voice through Ally Skill™ for Amazon Alexa
  • Interest compounded daily, paid monthly
  • FDIC insured

The Ally Spending Account is a solid low-fee option. You have free access to over 43,000 ATMs nationwide, but if you use an out-of-network ATM, Ally doesn’t charge a fee. If the out-of-network ATM provider charges you, then Ally will reimburse up to $10 per month.

Another standout perk is that you can use spending buckets to help manage your spending for different categories, like groceries or rent.

See Insider’s Ally Spending Account Review>>

Ally High Yield CD

Ally High Yield CD

Ally Ally High Yield CD

Insider’s Rating

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

4.5/5


Annual Percentage Yield (APY)

3.00% to 5.15%


Minimum Deposit Amount

$0

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive APY
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No required opening deposit
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low early withdrawal penalties
Cons

  • con icon Two crossed lines that form an ‘X’. No terms over 5 years
  • con icon Two crossed lines that form an ‘X’. No physical branch locations


Product Details

  • Terms ranging from 3 months to 5 years
  • Early withdrawal penalty of 60 days interest penalty term of 24 months or less; 90 days interest for term of 25 to 36 months; 120 days interest for terms of 37 to 48 months; 150 days interest for terms of 49 months or more
  • Interest compounded daily, paid monthly
  • FDIC insured

Ally Raise Your Rate CD

Ally Raise Your Rate CD

Ally Ally Raise Your Rate CD

Insider’s Rating

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

4.75/5


Annual Percentage Yield (APY)

4.00%


Minimum Deposit Amount

$0

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive APY
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Increase APY before term ends
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low early withdrawal penalties
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum deposit
Cons

  • con icon Two crossed lines that form an ‘X’. No physical locations
  • con icon Two crossed lines that form an ‘X’. May find higher APY elsewhere


Product Details

  • Choose from a 2-year or 4-year term
  • If Ally rates go up during your term, you may increase your rate once for a 2-year term, and twice for a 4-year term
  • Early withdrawal penalties: 60 days interest for a 2-year term, 120 days interest for a 4-year term
  • Interest compounded daily, paid monthly
  • FDIC insured

Ally No Penalty CD

Ally No Penalty CD

Ally Ally No Penalty CD

Insider’s Rating

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

4.75/5


Annual Percentage Yield (APY)

4.55%


Minimum Deposit Amount

$0

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive APY
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum deposit
Cons

  • con icon Two crossed lines that form an ‘X’. No physical locations
  • con icon Two crossed lines that form an ‘X’. Only term option is 11 months


Product Details

  • 11-month CD term
  • No early withdrawal penalty for taking out funds before your CD matures
  • Interest compounded daily, paid monthly
  • FDIC insured

Ally pays solid rates on its CDs, and it’s one of the few banks that doesn’t require a minimum opening deposit. 

Along with the Ally High Yield CD, Ally offers a Raise Your Rate CD, which allows you to increase your rate should Ally’s rates go up. You can increase your rate once during a 2-year term and twice during a 4-year term. Ally also offers an 11-month Ally No Penalty CD. 

If you’re worried you’ll need access to funds before your CD matures, then Ally could be a good option. The bank’s early withdrawal penalties are lower than what you’ll find with most banks, or you can open the Ally No Penalty CD.

See Insider’s Ally CD Review>>

Ally Money Market Account

Ally Ally Money Market Account

Insider’s Rating

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

4.25/5


Fees

no monthly service fee


Annual Percentage Yield (APY)

4.40%


Minimum Deposit Amount

$0

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No opening deposit or minimum account balance
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly service fee
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Access to a debit card
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Access to paper checks
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Out-of-network ATM reimbursements of up to $10 per month
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. 24/7 customer service
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Easy-to-use mobile app
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Link to other Ally bank accounts
Cons

  • con icon Two crossed lines that form an ‘X’. Not the highest money market account APY
  • con icon Two crossed lines that form an ‘X’. No physical branch locations
  • con icon Two crossed lines that form an ‘X’. $10 excess transaction fee (paused during COVID-19)


Product Details

  • Access to checks and a debit card
  • Interest compounded daily, paid monthly
  • FDIC insured

Savings and money market accounts have a lot of similarities, but one perk of a money market account is that it typically makes it easier to access your money than a savings account does. The Ally Money Market Account makes it especially easy by sending you both a debit card and paper checks.

See Insider’s Ally Money Market Account review>>

Ally Bank Auto Refinancing Review

Ally Bank Auto Loan Refinance

Ally Bank Ally Bank Auto Loan Refinance

Insider’s Rating

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

2/5


Regular Annual Percentage Rate (APR)

7.29% – 22.24%


Recommended Credit

Undisclosed


Loan Amount Range

$7,500 to $99,999

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Soft credit check to prequalify
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Co-borrowers allowed
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Guaranteed Asset Protection (GAP)
Cons

  • con icon Two crossed lines that form an ‘X’. Restrictive loan amount range
  • con icon Two crossed lines that form an ‘X’. Higher APR than competitors
  • con icon Two crossed lines that form an ‘X’. Available in 48 states
  • con icon Two crossed lines that form an ‘X’. Slow funding process


Product Details

  • Loan amount range from $7,500 to $99,999
  • Repayment terms between 36 to 72 months
  • GAP coverage available, which reduces the gap between how much the car is worth and how much you owe on the vehicle if your car is totaled or stolen
  • Can’t get a loan in Nevada, Vermont, or Washington, DC
  • Funding can take up to a few weeks
  • Customer service available by phone and email
  • Loans are made by Ally Bank, member FDIC

You might find Ally Auto Refinance worthwhile if you live in an eligible state and would prefer to avoid application or documentation fees. Other companies may offer more competitive rates on auto financial products, though.

If you’re looking for a car loan, you’ll have to find a dealer that offers Ally auto financing options.

See Insider’s review of Ally Auto Refinance>>

Ally Bank Mortgages Review

Ally Home Mortgage

Insider’s Rating

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

3.61/5


Types of Loans Offered

Conforming, jumbo

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Smooth online application process
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Get preapproved in 3 minutes
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Zero origination, application, underwriting, or processing fees
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Easily see personalized rates
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Large jumbo loan amounts
Cons

  • con icon Two crossed lines that form an ‘X’. Only offers conforming and jumbo mortgages
  • con icon Two crossed lines that form an ‘X’. Doesn’t accept alternative credit data


Product Details

  • Online-only mortgage lender
  • Available in all 50 states and Washington, DC
  • Does not accept alternative credit data, such as utility bills, if you have a low/no credit score
  • Minimum credit score and down payment displayed are for conforming mortgages

Ally only has conforming and jumbo mortgages. It might be worth considering if you have a good credit score. However, if your credit score is below 620 or you’re searching for a different type of home loan, you’ll want to consider other mortgage lenders. 

See Insider’s Ally Mortgage Review>>

Ally Bank Invest Review

Ally Invest

Ally Ally Invest

Insider’s Rating

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

4.48/5

Icon of check mark inside a promo stamp It indicates a confirmed selection.

Perks

Ally’s self-directed brokerage accounts also offer commission-free trading on stocks, ETFs, and options.


Account Minimum

$0 ($100 for Robo Portfolios; $100,000 for Ally Invest Personal Advice)


Fees

0% (up to 0.85% for Ally Invest Personal Advice; bonds, mutual funds, and certain stocks have fees)

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No account minimums or commissions for trading
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Automated portfolios free of advisory or management fees; Ally Invest Personal Advice available
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Options contracts only cost $0.50 per contract
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Bank accounts, mortgage refinancing, car loans, and personal loans available through Ally Bank
Cons

  • con icon Two crossed lines that form an ‘X’. Thousands of mutual funds but no no-transaction-fee mutual funds
  • con icon Two crossed lines that form an ‘X’. No cryptocurrencies


Product Details

  • App store rating: 4.7 iOS/ 3.9 Android
  • Consider it if: You want easy-to-use apps paired with excellent investing, checking, and savings accounts.

Ally is featured in our guide for the best online brokerages for beginners as the best bank account and brokerage combo. Ally Invest stands out because it’s a low-fee investment platform. It has commission-free stock and ETF trades. It also has a robot portfolio with zero advisory fees and a $100 account minimum balance.

See Insider’s Ally Invest Review>>

About Ally Bank

Ally offers a wide range of products. In addition to the offerings listed above, Ally also has credit cards and loans for medical treatments.

Ally is an online-only bank, but it has physical ATMs. It’s part of the Allpoint ATM network, so you have free access to over 43,000 Allpoint ATMs around the US. If you use an out-of-network ATM and the ATM provider charges a fee, then Ally will reimburse up to $10 per month.

The Ally mobile app has received 4.7 out of 5 stars in the Apple store, and 3.9 out of 5 stars in the Google Play store.

Live customer service is available 24/7, both by phone and online chat.

Your money is FDIC insured for up to $250,000, or $500,000 if you have a joint account.

Is Ally Bank Trustworthy? 

Ally received an A rating from the Better Business Bureau. The highest possible grade is an A+ but Ally has an A because it has three unresolved complaints on the BBB website.

The BBB looks at how a company responds to customer complaints. It also checks whether a business is honest in its advertising and transparent about how it conducts business.

Ally doesn’t have any recent public scandals.

Ally Bank FAQs

Ally doesn’t have any physical branches. You’ll have to be comfortable with a completely online banking experience.

Yes, Ally is a federally insured bank. Your money is insured by the FDIC for up to $250,000, or $500,000 if you have a joint account.

Ally might be a good place to bank if you want to open an account with a low initial deposit. Ally lets you open savings, checking, CD, or money market accounts with $0. Ally’s brokerage account also doesn’t have any account minimums. Ally pays high interest rates on bank accounts.

Ally doesn’t have minimum balance requirements. You won’t have to worry about keeping a specific daily balance to waive monthly service fees.

Methodology: How We Reviewed Ally Bank

For our Ally Bank review, we rated bank products and services using our editorial standards. At Personal Finance Insider, we rate products on a scale from zero to five stars.  We also compare and contrast the features and fine print of various products to help determine if the account may be right for you..

For example, we’ll look at early withdrawal penalties and CD variety specifically for CDs. Meanwhile, for checking accounts, we’ll factor in the ATM network size and fees, as well as its overdraft protection options.

We’ll consider factors like investment selection for investment for a brokerage account, and loan types for mortgages. In general, we also look at customer service and ethics.

How Ally Bank Compares

We compared Ally to two other online banks with competitive savings and CD rates.

Ally Bank vs. Marcus

Ally and Marcus are both online-only financial institutions. If you are more comfortable banking at a place that has branches, you’ll want to consider other options.

Marcus only has a savings account and CDs, so if you’re looking for a checking or money market account, you’ll want to go with Ally.

Marcus has an investing platform, but it doesn’t offer mortgages or auto loans.

Ally Bank vs. Capital One 360

Although Capital One Bank is considered an online bank, it does have physical branches in six US states and Washington, DC. So if you live near a branch and would like a combination of online and in-person banking, then you might like Capital One.

Both banks have CDs, savings accounts, and checking accounts. If you want a money market account or a type of CD other than a regular term CD, then you’ll want to go with Ally.

If you’d like to get home loans and a brokerage account at the same place where you have a bank account, Ally will likely be a better choice. In 2017, Capital One decided to discontinue its home loan products. Capital One also no longer offers investment advisory services.

Source

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