Ally Bank Review: Checking, Savings and CDs
Ally Bank is a popular online bank among people seeking strong rates and robust customer service. Because it doesn’t have to put money into physical branches, Ally is able to offer higher rates and lower fees than many brick-and-mortar institutions.
Overall bank rating
Savings
Checking
CD rates
Banking experience
Overdraft fees
4.5
The bottom line: Ally Bank's online-only offerings allow it to pass on the savings to its customers in the form of high interest rates. Ally has strong customer service and is ideal for people who don't care about having branch access for their banking.
Pros
No monthly maintenance fees or minimum balances on checking, savings or CDs.
Access to over 43,000 free ATMs via checking or money market accounts.
An above-average 0.50% APY on savings.
Cons
No way to deposit cash.
No branches available.
Full review
Ally Bank Online Savings Account
4.5
NerdWallet ratingAPY
0.50%
With $0 minimum balance
Ally’s savings account offers a rate of 0.50%, much higher than the national average of 0.06%, and interest is compounded daily, which means you’ll make a bit more money on interest compared with accounts that compound monthly. In response to the challenges some customers are facing due to the coronavirus pandemic, Ally is temporarily refunding excessive transaction fees; previously it charged customers for making more than six withdrawals or transfers per cycle.
Want to see more options? Check out NerdWallet’s best high-yield online savings accounts
Ally Bank Interest Checking Account
4.5
NerdWallet ratingMonthly Fee
$0
APY
0.10%
With $0 minimum balance
Ally offers an interest-bearing checking account with low fees and free access to over 43,000 ATMs nationwide. Ally will also reimburse you up to $10 per statement cycle for any fees you’re charged using an out-of-network ATM in the U.S.
Note that Ally doesn't accept cash deposits. Your options include mobile check deposit, setting up direct deposit, setting up a wire transfer or sending a check by mail. However, Ally does allow customers to deposit up to $50,000 per day and $250,000 per month via its mobile deposit feature.
Best Bank for CDs
Ally Bank High Yield CD
5.0
NerdWallet rating1-year APY
0.55%
3-year APY
0.65%
5-year APY
0.80%
Minimum Deposit
$0
Ally offers three types of CDs, including the High-Yield CD options listed above. There’s no minimum deposit requirement for any of these certificates of deposit, though rates may vary depending on your balance. You can compare Ally CDs to other banks' using our tool.
Raise Your Rate CDs let you bump up your APY once or twice, depending on the term length, to the rate currently on offer for new CDs. And there’s also a CD with no early withdrawal penalty for those who may need the money sooner. These two types of CDs did not factor into our star ratings.
Banking experience
4.5
NerdWallet ratingThere are plenty of ways to get your questions answered — by phone, email, snail mail, or chat — but Ally's stellar help center will likely answer many frequently asked questions. Ally’s apps, both on iOS and Android, have garnered high ratings from users.
Ally's bank experience rating takes a hit largely because of the bank's lack of branches.
Overdraft fees
4.0
NerdWallet ratingAlly charges a $25 overdraft fee, but customers can't rack up more than one of those per day. Although the bank has a free overdraft transfer service for linked Ally accounts as an alternative, it doesn't offer an overdraft line of credit.
You won't be able to escape fees entirely at Ally, but at least the bank clearly highlights what you'll owe for certain services and transactions. That kind of transparency isn't always so easy to come by with banks.
Ally Bank Online Savings Account
4.5
NerdWallet ratingAPY
0.50%
With $0 minimum balance
Ally’s savings account offers a rate of 0.50%, much higher than the national average of 0.06%, and interest is compounded daily, which means you’ll make a bit more money on interest compared with accounts that compound monthly. In response to the challenges some customers are facing due to the coronavirus pandemic, Ally is temporarily refunding excessive transaction fees; previously it charged customers for making more than six withdrawals or transfers per cycle.
Want to see more options? Check out NerdWallet’s best high-yield online savings accounts
Ally Bank Interest Checking Account
4.5
NerdWallet ratingMonthly Fee
$0
APY
0.10%
With $0 minimum balance
Ally offers an interest-bearing checking account with low fees and free access to over 43,000 ATMs nationwide. Ally will also reimburse you up to $10 per statement cycle for any fees you’re charged using an out-of-network ATM in the U.S.
Note that Ally doesn't accept cash deposits. Your options include mobile check deposit, setting up direct deposit, setting up a wire transfer or sending a check by mail. However, Ally does allow customers to deposit up to $50,000 per day and $250,000 per month via its mobile deposit feature.
Best Bank for CDs
Ally Bank High Yield CD
5.0
NerdWallet rating1-year APY
0.55%
3-year APY
0.65%
5-year APY
0.80%
Minimum Deposit
$0
Ally offers three types of CDs, including the High-Yield CD options listed above. There’s no minimum deposit requirement for any of these certificates of deposit, though rates may vary depending on your balance. You can compare Ally CDs to other banks' using our tool.
Raise Your Rate CDs let you bump up your APY once or twice, depending on the term length, to the rate currently on offer for new CDs. And there’s also a CD with no early withdrawal penalty for those who may need the money sooner. These two types of CDs did not factor into our star ratings.
4.5
NerdWallet ratingThere are plenty of ways to get your questions answered — by phone, email, snail mail, or chat — but Ally's stellar help center will likely answer many frequently asked questions. Ally’s apps, both on iOS and Android, have garnered high ratings from users.
Ally's bank experience rating takes a hit largely because of the bank's lack of branches.
4.0
NerdWallet ratingAlly charges a $25 overdraft fee, but customers can't rack up more than one of those per day. Although the bank has a free overdraft transfer service for linked Ally accounts as an alternative, it doesn't offer an overdraft line of credit.
You won't be able to escape fees entirely at Ally, but at least the bank clearly highlights what you'll owe for certain services and transactions. That kind of transparency isn't always so easy to come by with banks.
How does Ally Bank compare?
Member FDIC | Deposits are FDIC Insured | |
|---|---|---|
APY0.50% With $0 minimum balance | APY0.40% With $0 minimum balance | APY0.20% With $0.01 minimum balance |
BonusN/A | BonusN/A | BonusN/A |
RATING METHODOLOGY
NerdWallet’s overall ratings for banks and credit unions are weighted averages of several categories: checking, savings, certificates of deposit or credit union share certificates, banking experience and overdraft fees. Factors we consider, depending on the category, include rates and fees, ATM and branch access, account features and limits, user-facing technology, customer service and innovation. The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.
Frequently asked questions
Your money is safe with Ally Bank because it is FDIC-insured. This means that your funds in Ally deposit accounts are insured up to $250,000 per person, per ownership category if the bank goes out of business.
Ally Bank is part of Ally Financial Inc. Ally originally launched in 1919 as GMAC, a division of GM, to allow auto dealers to finance their inventory and keep up with demand from consumers. The company rebranded as Ally Financial in 2010.
Ally is one of our top overall institutions. It offers one of the best online checking accounts, and pays a competitive interest rate. While there’s no one bank that’s best for everyone, Ally is also strong in other categories, including savings and customer service.
Ally does not accept cash deposits. You can deposit funds in other ways, including mobile check deposit, online transfers, direct deposit, wire transfers or even mail.
