Ally Bank Review 2024: Features, Pros, and Cons
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The bottom line: Ally is one of our top picks for the best online banks. It’s a great option for banking and investing. Other financial institutions have more offerings for mortgages and other types of loans, though.
Ally Bank: Overall Rating
Feature | Personal Finance Insider rating (out of 5) |
Banking | 4.25 to 4.75 |
Mortgages | 3.63 |
Investment platform | 4.48 |
Trustworthiness | 4.5 |
Total | 4 |
Ally Bank: Pros and Cons
Pros | Cons |
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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. 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.
Your money is FDIC insured for up to $250,000, or $500,000 if you have a joint account.
Ally Bank Online and Mobile Banking Experience
Ally is an online-only bank, so it doesn’t have any physical branches. If you’re considering Ally as a banking option, you must be comfortable managing your bank account primarily through online and mobile banking.
The Ally mobile app includes standard banking features like mobile check deposits, an ATM locator, and debit and credit card usage controls.
If you have an Ally Savings Account or Ally Spending Account you can also have access to the bank’s buckets feature. With the Ally Savings Account, you can save money for individual savings goals, like an upcoming vacation or occasion. Meanwhile, the Ally Spending Account allows you to separate your primary expenses with spending buckets.
The Ally mobile app has received 4.7 out of 5 stars in the Apple store based on 72,900 ratings. In the Google Play store it’s rated 2.7 out of 5 stars based on 27,100 reviews.
Ally Bank Customer Service and Support
Ally offers customer support by phone, live chat, or email. If you have questions about banking, investing, or credit cards, representatives are available 24/7 by phone.
For questions about other services, the hours may vary. Generally, you can talk to a representative about auto loans, home loans, or personal loans beyond traditional hours Monday through Friday and select hours on Saturday.
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 a few 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
Is Ally Bank safe to use for online banking?
Yes, Ally is safe to use for online banking. It’s an FDIC-insured financial institution, so up to $250,000 per depositor per ownership category is secure in a bank account.
Does Ally Bank offer any physical branches?
No. Ally is an online-only bank. It doesn’t have physical branches.
Can I deposit cash with Ally Bank?
No. You cannot deposit cash with Ally Bank. You can set up direct deposits or make mobile check deposits through the mobile app.
Ally Bank Personal Banking Review
Ally Savings Account
Start saving
Fees
no monthly service fee
Annual Percentage Yield (APY)
4.00%
Minimum Opening Deposit
$0
- High APY
- No minimum opening deposit
- No monthly service fees
- Savings buckets help you save for different goals
- Surprise savings transfers help you save extra money from your checking account
- No physical branch locations
- 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.
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 Bank savings account interest rates are also better than traditional savings accounts at brick-and-mortar banks.
See Business Insider’s Ally Savings Account Review.
Ally Spending Account
Start banking
Fees
no monthly service fee
Annual Percentage Yield (APY)
0.10% to 0.25%
Minimum Opening Deposit
$0
Bonus
N/A
- Spending buckets to manage expenses
- Competitive APY
- No initial deposit
- No minimum account balance
- No monthly service charge
- Connect your account with Zelle
- Easy-to-use mobile app
- Early direct deposit
- Reimburses up to $10/month in out-of-network ATM fees
- Online bill pay
- 24/7 customer service
- No overdraft fees
- Overdraft protection
- No physical branch locations
- 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 Business Insider’s Ally Spending Account Review.
Ally High Yield CD
Start saving
Annual Percentage Yield (APY)
3.00% to 4.60%
Minimum Opening Deposit
$0
- Competitive APY
- No required opening deposit
- Low early withdrawal penalties
- No terms over 5 years
- No physical branch locations
Insider’s Take
Ally is one of the best online banks and an excellent choice for CDs. Its CD stands out from competitors because they have $0 opening deposit requirements, standard-to-low early withdrawal penalties, and great CD rates.
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
Start saving
Annual Percentage Yield (APY)
3.50%
Minimum Opening Deposit
$0
Bonus
None
- Competitive APY
- Increase APY before term ends
- Low early withdrawal penalties
- No minimum deposit
- No physical locations
- May find higher APY elsewhere
Insider’s Take
Ally is one of the best online banks and an excellent choice for CDs. Its CD stands out from competitors because they have Ally High Yield CD – Minimum Deposit opening deposit requirements, standard-to-low early withdrawal penalties, and great CD rates.
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
Start saving
Annual Percentage Yield (APY)
4.00%
Minimum Opening Deposit
$0
Bonus
None
- Competitive APY
- No minimum deposit
- No physical locations
- Only term option is 11 months
Insider’s Take
Ally is one of the best online banks and an excellent choice for CDs. Its CD stands out from competitors because they have Ally High Yield CD – Minimum Deposit opening deposit requirements, standard-to-low early withdrawal penalties, and great CD rates.
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 Business Insider’s Ally CD Review.
Ally Money Market Account
Start banking
Fees
no monthly service fee
Annual Percentage Yield (APY)
4.00%
Minimum Opening Deposit
$0
- No opening deposit or minimum account balance
- No monthly service fee
- Access to a debit card
- Access to paper checks
- Out-of-network ATM reimbursements of up to $10 per month
- 24/7 customer service
- Easy-to-use mobile app
- Link to other Ally bank accounts
- Not the highest money market account APY
- No physical branch locations
- Limits transactions to 10 per statement cycle across both Ally Savings and Ally Money Market Accounts
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 Business Insider’s Ally Money Market Account Review.
Ally Bank Mortgages Review
Compare rates
Recommended Credit
620
Minimum Down Payment
3%
Types of Loans Offered
Conforming, jumbo, One Day Mortgage
- Smooth online application process
- $5,000 homebuyer grant available
- Zero origination, application, underwriting, or processing fees
- Easily see personalized rates
- Large jumbo loan amounts
- Lock in a rate and receive conditional approval within 24 hours
- Only offers conforming and jumbo mortgages
- Doesn’t accept alternative credit data
- Homebuyer grant only available in Charlotte, Detroit, and Philadelphia metro areas
Insider’s Take
Ally has a very limited range of mortgage options to choose from, but it also offers features that rival some of the best mortgage lenders out there, including a rate customization tool and no lender fees. Plus, it ranks high in customer satisfaction and offers large jumbo loan amounts.
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 Business Insider’s Ally Mortgage Review>>
Ally Bank Invest Review
Start investing
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)
- No account minimums or commissions for trading
- Automated portfolios free of advisory or management fees; Ally Invest Personal Advice available
- Options contracts only cost $0.50 per contract
- Bank accounts, mortgage refinancing, car loans, and personal loans available through Ally Bank
- Thousands of mutual funds but no no-transaction-fee mutual funds
- No cryptocurrencies
Insider’s Take
Ally Invest is best for active traders looking for $0 minimum deposits, commission-free investing, easy-to-use trading tools, and 24/7 market access. The brokerage is also great for passive investors in search of automated advice.
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 Business Insider’s Ally Invest Review.
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.
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.
Is Ally Bank Right For You?
Ally is a great choice if you want to save and invest in one place. Ally’s banking and investment accounts have low minimum opening requirements and minimal fees. Its savings, money market, and CD accounts also notably pay better rates than brick-and-mortar banks.
You’ll want to consider other options if you aren’t comfortable with an online-only banking experience. Ally also doesn’t have as many mortgage and loan types as other financial institutions.
Why You Should Trust Us: How We Reviewed Ally Bank
For our Ally Bank review, we rated bank products and services using our editorial standards. At Business 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.
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