Ally Bank is perfect for you if you’re looking for an online bank that offers few fees and high-interest rates on deposit accounts.
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Table of contents
Overview of Ally Bank
Although Ally Bank was formed in 2009, it dates back to 1919 as GMAC, which was a division of General Motors (GM). Originally, it helped car dealers finance and maintain their inventory.
Now, Ally Bank is an award-winning online bank that offers competitive rates and customer support at any time.
The only downside is that there aren’t any physical locations. If you like to go in to a physical location for your banking needs, Ally isn’t the right financial institution for you.
However, if you’re comfortable with online banking and using the ATM, Ally is one of the best places for you to bank.
You can access more than 43,000 Allpoint® ATMs in the U.S. for free. If you need to use an out-of-network ATM, Ally will reimburse up to $10 per statement cycle for ATM fees.
One of the main reasons people switch to Ally Bank is because of the incredible deposit accounts. It offers checking, savings, money market, and certificate of deposit (CD) accounts.
Similar to a traditional bank, Ally is FDIC-insured, meaning your funds are backed up to $250,000. Unlike most banks, Ally doesn’t have a monthly maintenance fee or a minimum balance requirement.
The following is an overview of the deposit accounts:
Online Savings Account
The Online Savings Account offers a competitive and variable rate. Currently, the annual percentage yield (APY) is 0.50% on all balance tiers. It’s much higher than the national average of 0.05% APY.
Remember, savings accounts are subject to Regulation D, which means there’s a limit of 6 withdrawals per statement cycle.
Interest Checking Account
Ally Bank offers one checking account and it earns interest. If your minimum daily balance is less than $15,000, then you’ll earn 0.10% APY. If it’s $15,000 or more, you’ll earn 0.25% APY.
You can access your checking account in the following ways:
- Debit card.
- Online bill payment.
- Online transfers.
- Request a wire transfer online.
- Call to get a cashier’s check.
Money Market Account
Ally’s money market account currently pays an annual percentage yield of 0.50% on all balance tiers.
You have the option to get a debit card and checks for the money market account. However, federal regulation limits the number of withdrawals you can do in a statement cycle to six.
High Yield CD
With the High Yield CD, you can earn a competitive rate that ranges based on the term. The following is a breakdown of the different terms and rates:
- 3 months: 0.20% APY
- 6 months: 0.25% APY
- 9 months: 0.30% APY
- 12 months: 0.60% APY
- 18 months: 0.60% APY
- 3 years: 0.65% APY
- 5 years: 0.85% APY
When your CD matures, you can withdraw your money at no charge during a 10-day grace period. If you do an early withdrawal, it’s subject to penalties.
Raise Your Rate CD
Ally’s Raise Your Rate CD is also known as a bump CD. The benefit of opening this type of CD is that you can increase your rate if and when Ally’s rate increases.
With a 2-year term, you can raise your rate once, and twice with a 4-year term.
The following are the current terms and rates:
- 2 years: 0.60% APY
- 4 fours: 0.60% APY
No Penalty CD
The No Penalty CD allows you to withdraw the full balance and interest without any penalties after the first 6 days of funding your CD. Currently, it pays 0.50% APY for an 11-month term.
Investments and retirement
Aside from your regular deposit accounts, Ally Invest offers investments and retirement accounts.
Whether you want to do self-directed trading or get a managed portfolio without advisory fees, Ally has great solutions.
Ally also offers lending options with competitive rates. The following are the types of loans that you can get with Ally:
- Mortgage purchase and refinance.
- Business or personal auto loan.
- Personal loan.
What it’s like to bank with Ally
If you’re comfortable doing your banking online and not going into a physical location, Ally Bank is a seamless and great place to bank.
You can contact them via online chat, email, or by calling 1-877-247-2559. Their customer service is incredible, kind, helpful, and knowledgeable.
Additionally, you can access your Ally account online or through the app. It’s a top-rated app on both, the Apple App Store and Google Play Store.
Overall, it’s an excellent and innovative banking experience.
Frequently asked questions
Ally Bank is owned by Ally Financial, which is a bank holding company.
Although Ally Bank doesn’t have physical locations, it’s a safe place to bank because it’s FDIC-insured and follows the same banking regulations as a traditional bank.
If you open a checking account or money market account, you’ll get a debit card.
No, Ally Bank doesn’t accept cash deposits.
To open an account with Ally Bank, you’ll need your legal name, date of birth, social security number, and address. You must be 18 or older to apply for an account.
Ally Bank is one of the most well-known banks in the country. It has a robust online banking system, is FDIC-insured, and pays high-interest rates on checking, savings, and certificate of deposit (CD) accounts. Overall, Ally is an excellent bank.
Featured image courtesy of Ally Bank.
About David Em
David Em is the founder of More Money More Choices, which he launched to help you take control of your finances and build your dream life. Before More Money More Choices, David worked in leadership positions in the finance industry.