Ally Bank Review: Is Ally a Good Bank?
Do you want to open an account with high-interest rates and no minimum deposits? Are you looking for a one-stop shop for all your financial needs, like mortgages, vehicle loans, personal loans, money market account, and investment options?
Look no further. Ally bank is the answer to all your queries.
In 1919, General Motors started Ally Financial Inc. to provide financing facilities to its automobile clients. In 2009, after a series of changes, this business entity was renamed Ally Bank. Ally is primarily known for its low-cost, online-only financial services.
However, is this well-known online bank good for you? Let’s find out through this Ally Bank review.
Table of Contents
Ally Bank Review: Topic Overview
Understanding how bank accounts work can be overwhelming at first glance but we’re here to help break it down so that anyone can understand it!
Check out our comprehensive review of Ally Bank’s services below: -What are the benefits? -How does it compare against other banks? -What are the Pros and Cons -Who is it best for?
Everything you need to know about Ally Bank in one place. We’ve got the details for you.
What is Ally?
Ally Bank is a full-service online bank that offers exceptionally low rates. There are no minimum deposit restrictions or service charges with their financial products.
The Federal Deposit Insurance Corporation (FDIC) protects Ally bank. This financial institution follows the same standards and regulatory restrictions as conventional banks, even though it does not have physical branches.
The FDIC guarantees your accounts up to the limit of $250,000 (per account holder), just like traditional banks.
How do Ally’s Checking Account and Savings Account work?
The most popular products of Ally bank are saving accounts and checking accounts. Let’s see how it works.
Ally has a fantastic online checking account that actually pays interest, unlike most other conventional banks. Account-holders are paid 0.10% annual percentage yield, on balance till $15,000, while on balances over $15,000, one can earn 0.25% annual percentage yield.
In addition to that, you may use Ally check deposit to deposit checks online, and Zelle and Ally Skill make money transfers simple. There is no minimum deposit requirement, and account holders can avoid ATM fees by using one of the 40,000+ Allpoint® ATMs. You can also use a mobile app to manage your bank account.
Online Savings Account
Customers wishing to earn greater interest in their savings than most other conventional banks will find Ally as an excellent option. The bank pays a 0.50% APY, has no monthly maintenance fees, and has no minimum balance required.
Ally also allows you to tailor your savings by letting you open as many saving accounts as you wish. This way, you can have separate accounts for specific expenses like vacations and home repair projects.
What are the Features of Ally Banking?
Ally Banking is an online financial institution that has its unique features. Let’s learn about some of these.
- There is no minimum deposit or monthly maintenance fees. You can open a bank account with very little money and instantly start earning interest.
- Live chat customer service is available. Some consumers are wary about entirely digital banking because they lose the personalized feel. But rest assured, Ally has actual human staff too, which can assist you.
- Ally doesn’t accept cash deposits. Your options include mobile check deposit, setting up direct deposit, setting up a wire transfer, direct deposits, or sending a check by mail.
- You can quickly deposit checks by phone. Simply upload a picture of the check with your phone on the mobile app, and the amount will be transferred to your account.
- They are also entirely open about their rates so that you won’t be caught off guard.
- When it comes to safeguarding your hard-earned money, security is a critical consideration. The FDIC ensures Ally Bank, so your funds are secure.
- Ally bank caters to most of your financial needs. It just launched Ally Invest after acquiring TradeKing in 2016. Among digital brokerages, Ally Invest has some of the lowest fees.
Ally Bank offers a wide range of financial services, including checking and online savings account, mortgages, vehicle, and personal loans, as well as retirement and investment choices.
Ally Interest Checking Account
A fantastic online checking account that pays interest, unlike other banks with regular checking accounts. On account balance under $15,000, account holders earn 0.10% APY, while on balances over $15,000, they earn 0.25% APY.
You can use echeck deposit for depositing checks via smartphones, and Zelle and Ally Skill make money transfers simple.
Ally Bank Savings accounts
Consumers wishing to earn greater interest on their savings than many traditional banks will find Ally’s savings account to be an excellent option. The account pays a.50 percent annual percentage yield, has no monthly maintenance fees, and has no minimum balance required. Ally also allows you to tailor your savings by creating online “buckets” for specific expenses like trips and home repair projects.
Also, Ally’s Savings Account has two variants, one savings account, which pays a higher rate, and the other one is a money market account, which gives a checkbook and a debit card.
For consumers who want to circumvent minimum balance requirements for opening and earning income on money market accounts, the Ally Money Market Account is a great option. With an APY of.5, Ally’s money market account is a terrific way to keep your cash. Account-holders can deposit checks electronically, use a fee-free ATM network, and collect interest on their account balance.
CDs are a wonderful way to save money for medium-term needs like a down payment on a home or a new automobile. CDs have set terms and you can’t withdraw your money. If you have a 12-month CD, for example, you will have to wait for 12 months before you can retrieve your money. Your money will accrue interest throughout that time.
Ally bank offers a high yield CD as well as a raise your rate CDs with a loyalty benefit on the renewal of your CD. You can raise your rate once for two-year CDs and twice with four-year CDs. Ally Bank Raise Your Rate CDs has APY 0.55% for two years term and for Four Years 0.55%.
Ally also has a No Penalty CD, which means you won’t be penalized if you need to withdraw your money before the tenure is finished.
However, early withdrawal penalties ate levied up to 120 days of interest on Raise Your Rate CDs.
Retirement and investment
While Ally’s CDs, savings, and checking accounts are the stars of the show, the company also offers a variety of investment and retirement-saving options. Customers can open a standard IRA, a Roth IRA, or a rollover IRA. Stocks, bonds, and ETFs, mutual funds, low-cost securities, and more are just a few of the investing alternatives accessible.
Customers wishing to finance the purchase of a property can get a mortgage from Mortgage Ally. Borrowers can fill out a simple online application and receive approval in three minutes or less.
Jumbo mortgages, fixed-rate, and adjustable-rate are all available via Ally. Ally can also assist you if you want to refinance your current mortgage.
Over a century ago, Ally began offering auto loans, and they’re still holding strong. Vehicle financing is available from Ally for both personal and business automobiles. Ally finance, though, is only accessible at a few dealerships.
Personal loans are available from Ally to cover a variety of needs. Loans for medical treatments and surgeries and loans for house repairs and renovations fall under this category. If you have a large medical bill or a home renovation project coming up, personal loans can help you pay for it. Loans are sent straight to the provider in both circumstances.
How much does Ally cost?
The financial products offered by Ally are relatively low-cost and have few charges. For instance, Ally’s online Interest Checking account offers no monthly maintenance fees or minimum, no charges for ACH transactions, national or international wire transfers, or cashier’s checks costs.
There is an explicit mention of their overdraft fees and outbound domestic wires, so you are not kept in the dark.
Not only does Ally have a low fee structure, but several of its financial solutions can also help you save money in the long run. For instance, their Interest Checking account and Online Savings account both earn a high rate of interest.
|Ally Bank Accounts Types||Monthly Fees||Waiver Criteria||Minimum Deposit Amount|
|Ally Interest Checking||$0||N/A||$0|
|Ally Savings Accounts||$0||N/A||$0|
Who is Ally Best For?
Many types of customers will benefit from Ally, particularly those who embrace the company’s cloud-based solution.
Those Who Are Happier With an Online Bank
Ally is an online-only bank with a comprehensive portfolio of digital tools to assist you in budgeting, saving, and managing your money. Ally is a wonderful option if you’re searching for a bank where the internet experience isn’t an inconvenience.
Those Seeking a Low-cost Bank
Ally takes pleasure in charging its consumers few fees. It charges costs that are explicitly specified up beforehand.
Those Looking for Interest-bearing Accounts
While several conventional banks don’t offer interests, Ally offers interest-bearing checking and savings accounts. This means it’s a terrific option to increase the money you’ve set aside.
Ally Bank Pros and Cons
▶ An Umbrella of Financial Products Are Available
▶ Fees Are Low
Ally bank account takes pride in its minimal fees and transparent pricing.
Ally doesn't have the physical overhead expenditures of conventional banks because it's exclusively available online. Ally will be able to pass on the savings to its consumers. Each of Ally's deposit accounts has no monthly fees.
▶ Account Opening Is Easy
✖ There Are No Physical Bank Locations
Knowing that you won't be able to drop by into a branch and receive assistance from an actual person may make you feel uneasy. Customer service is only available by phone, which causes long waiting times.
For some, this may be a disadvantage. Because the savings account does not include an ATM card, you will be unable to make quick withdrawals from ATMs.
If you require money, you'll have to make an internet transfer (or a wire transfer, through a phone, or an echeck deposit), which could take several days.
Ally Compare to other Banks
|Bank||Minimum Deposit||Monthly Fee||Savings APY||Overdraft||Number of Branches|