Ally has come a long way from its humble beginnings in 1919 to an online bank today that offers a vast array of financial products with low fees and competitive rates.
In this review, we at the MarketWatch Guides team take a deep dive into Ally Bank’s products and reputation so you can determine if it’s the right place to help you reach your personal finance goals.
Ally Bank at a Glance
Best for Customer Experience
Ally Bank
4.7
Minimum Account Balance $0
Minimum Deposit $0
Savings APY 4.20%
ATM Locations 43,000
Available Deposit Products Checking, Savings, CDs, Money Market
High Yield CD Rates 3.00% to 5.00%
If you’re comfortable with banking online, Ally Bank is worth considering. It has all the deposit accounts you could want, and all of them come with competitive interest rates. The lack of fees and minimum balance requirements are also a plus, making Ally’s accounts accessible to anyone. Having customer service support at all hours is also a positive.
Pros
Deposit account options: Ally Bank offers numerous deposit accounts, all with no minimum deposit or balance requirements.
Customer service: There is 24/7 support for banking and investment services via phone or online chat.
Large, free ATM network: Ally doesn’t charge fees for using the Allpoint ATM network, which has over 43,000 locations across the country.
High returns: Ally’s savings, money market, checking and CD accounts offer annual percentage yields (APYs) higher than the national averages.
Cons
No branch locations: Ally has no physical branches for in-person customer service.
No support for cash deposits: Using cash deposits is not an option for accounts.
Limits on wire transfers: Ally doesn’t allow outgoing international wire transfers.
Ally’s roots stretch back to 1919 when auto manufacturers had dealers maintain a large inventory of cars to keep the factories running at a regular cadence. General Motors formed the General Motors Acceptance Corp. to help auto dealers finance the purchase of multiple cars.
By 1999, after plenty of growth and expansion, the bank formed a corporate finance division and a decade later converted its banking division into the online-only Ally Bank. The company rebranded as Ally Financial in 2010 and is now atop-25 U.S. financial holding companywith approximately $196 billion in assets and over 11 million customers. Ally’sauto loansdivision is one of the top lenders in the U.S.
Our Ally Bank Ratings
We give Ally 4.5 out of 5 stars after evaluating factors including its branch availability, account fees, interest rates and customer support. The bank scores highest for its checking accounts, with its certificates of deposit (CDs) and overall banking experience right behind.
Here’s how the company scores in each of our review categories:
Flip Card Ally Bank
Ally Bank Rating 4.5 / out of 5 stars
Rating breakdown
Banking Experience and Access 4.5 / 5
Checking 4.7 / 5
Savings 4.4 / 5
CDs 4.5 / 5
Money Market Accounts (MMAs) 4.4 / 5
*Ratings are determined by our editorial review team. Learn more about our scoring methodology.
Ally Bank Products
We rate Ally 4.5 stars for its overall customer banking experience including ease of access to perform banking transactions and other features. Ally offers a variety of deposit accounts, including:
- A high-yield savings account
- A checking account (which it refers to as its Spending Account)
- A money market account
- High-yield CDs with fixed rates, two bump-up CDs and a no-penalty CD
All of these deposit accounts are insured by the Federal Deposit Insurance Corp. (FDIC) up to the maximum allowable limit of $250,000 per depositor for each qualifying account ownership category.
In addition, Ally offers credit cards, individual retirement accounts (IRAs), investment accounts and mutual funds. You can also shop for a mortgage, auto loans or personal loans with the bank. Although Ally is a full-service bank, it doesn’t have physical locations, and you can only make deposits by transferring money from another bank or Ally account, wire transfer, mobile deposit via the Ally app or mailing in a check.
| Ally Account | APY* | Minimum Opening Deposit | Minimum Account Balance |
|---|---|---|---|
| Spending Account | 0.10% for balances less than $15,000 0.25% for balances of $15,000 or more | $0 | $0 |
| Savings Account | 4.20% | $0 | $0 |
| IRA Savings Account | 4.20% | $0 | $0 |
| High Yield CD | 3.00% to 5.00% | $0 | $0 |
| Raise Your Rate CD | 3.60% | $0 | $0 |
| No Penalty CD | 4.00% | $0 | $0 |
| IRA High Yield CD | 3.00% to 5.00% | $0 | $0 |
| IRA Raise Your Rate CD | 3.60% | $0 | $0 |
| Money Market Account | 4.20% | $0 | $0 |
Ally Bank Checking Accounts
Best for Customer Experience
4.7
| Ally Bank Checking Account | Minimum Opening Deposit | Minimum Account Balance | Monthly Service Fee | Overdraft Fee | APY* |
|---|---|---|---|---|---|
| Spending Account | $0 | $0 | $0 | $0 | 0.10% for balances less than $15,000 0.25% for balances of $15,000 or more |
*APY accurate as of September 3, 2024
Ally Bank Checking Account Overview
We rate Ally’s checking account 4.7 stars. This account, which the bank calls a Spending Account, is best for those who are comfortable conducting all of their banking online or through a mobile app.
Pros and Cons
Pros Earns interest: This interest checking account earns an APY above the FDIC’s national average rate of 0.07% for interest checking accounts. No fees: There are no monthly maintenance, overdraft or low-balance fees. ATM perks: Ally’s ATM network includes more than 43,000 ATMs without fees, and you’ll get up to $10 in reimbursem*nts per statement cycle for out-of-network ATM fees. Cons No cash deposits: Ally doesn’t accept cash deposits for any of its accounts. No branch access: Since Ally Bank is only online, you won’t be able to manage your account in person.
Ally Bank Checking Account
Spending Account
The Ally Spending Account has no overdraft or monthly maintenance fees, and money can be withdrawn via the vast Allpoint ATM network. If you use out-of-network ATMs, Ally will reimburse up to $10 in fees per month. There’s also no charge for standard orcashier’s checks, incoming wires or any automated clearing house (ACH) transfers, whether they’re standard or expedited.
This Ally checking account earns interest, buthow much you’ll earndepends on if your balance is above or below $15,000. You’ll also get a debit card andpersonal checks.
Ally Bank Savings Accounts
4.4
| Ally Bank Savings Account | Minimum Opening Deposit | Minimum Account Balance | Monthly Service Fee | APY* |
|---|---|---|---|---|
| Savings Account | $0 | $0 | $0 | 4.20% |
| IRA Savings Account | $0 | $0 | $0 | 4.20% |
*APY accurate as of September 3, 2024
Ally Bank Savings Account Overview
We scoreAlly’s online savings accounts4.4 stars. It offers a high-yield savings account in both standard and IRA versions.
Pros and Cons
Pros No account fees: These savings accounts don’t charge fees such as monthly maintenance fees or excessive transaction fees. Competitive APY: You’ll earn a high APY on all balance tiers. Savings tools: Ally offers savings bucket and booster features to help you organize and maximize your savings. Cons Withdrawal limits: Most types of transactions are limited to 10 per statement cycle. No ATM card: Ally’s savings account doesn’t come with an ATM card.
Ally Bank Savings Account Options
Savings Account
Ally’s Savings Account is a great option for those looking for an online savings account with no fees and helpful digital savings tools. In addition to an APY that’s more than nine times higher than the nationalaverage rate of 0.50%, Ally offers a “bucket” feature that allows you to divide and organize your savings. You can allocate some to necessities such as rent or loan payments or set money aside for other savings goals.
There’s no minimum opening deposit or balance requirement, but there’s a limit of 10 withdrawals per statement cycle.
IRA Savings Account
Ally’s IRA Savings Account is similar to itsstandard savings account. It has the same competitive rate, lack of monthly fees and withdrawal limit. This account is available in traditional, Roth and Simplified Employee Pension (SEP) versions.
Ally Bank CDs
4.6
| Ally Bank CD | Minimum Opening Deposit | APY* | CD Type | Early Withdrawal Penalty |
|---|---|---|---|---|
| High Yield CD | $0 | 3.00% to 5.00% | Standard | 60 days of interest for CD terms of 24 months or less 90 days of interest for CD terms of 25 months to 36 months 120 days of interest for CD terms of 37 months to 48 months 150 days of interest for CD terms of 49 months or more |
| Raise Your Rate CD | $0 | 3.60% | Specialty | 60 days of interest for 2-year CD terms 120 days of interest for 4-year CD terms |
| No Penalty CD | $0 | 4.00% | Specialty | None |
| IRA High Yield CD | $0 | 3.00% to 5.00% | Specialty | 60 days of interest for CD terms of 24 months or less 90 days of interest for CD terms of 25 months to 36 months 120 days of interest for CD terms of 37 months to 48 months 150 days of interest for CD terms of 49 months or more |
| IRA Raise Your Rate CD | $0 | 3.60% | Specialty | 60 days of interest for 2-year CD terms 120 days of interest for 4-year CD terms |
*APY accurate as of September 3, 2024
Ally Bank CD Overview
Ally’s CDsearn 4.5 stars for features that include 24/7 customer service, interest that’s compounded daily, protection via FDIC insurance and a lack of monthly maintenance fees or balance requirements. It offers standard and specialty CDs, including high-yield CDs, bump-up CDs, no-penalty CDs and IRA CDs.All of its CDscan be opened online.
Ally offers a 10-day best-rate guarantee. If the interest rate goes up the day of or within nine days following your account opening, Ally will automatically give you its best rate for your term and balance.
The bank also offers a loyalty reward for all CDs if you renew, which is currently set at 0.05% – this APY bonus is added to the best rate available at the time of renewal to increase the overall APY for your term. If you want to withdraw your money, you’ll have to actively stop your CD account from automatically renewing.
Pros and Cons
Pros High CD rates: Ally offers high rates on all of its CD terms, including specialty CDs. No minimums: There are no minimum balance or minimum deposit requirements. Rate guarantee: All CDs come with Ally’s 10-day best-rate guarantee when opening or renewing CDs. Renewal reward: If you renew your CD, you’ll earn a boosted CD rate. Cons No branch access: You won’t be able to manage your CD account in person at a bank. No partial withdrawals: Ally doesn’t allow partial withdrawals of funds, only full withdrawals.
Ally Bank CD Options
High Yield CD
Ally’s high-yield CDs have several terms available, ranging fromthree monthstofive years. All CDs feature competitive rates, though Ally’s best rate is currently for aone-year CD term.
Raise Your Rate CD
Raise Your Rate CDs are available in either a two- or four-year term. The two-year version offers a one-time rate increase, and the four-year version offers two chances to bump your rate up. Both offer the same competitive rate.
No Penalty CD
This no-penalty CD comes in an 11-month term and offers a high APY. There’s no early withdrawal penalty when you withdraw your money after the first six days of funding the account.
IRA High Yield CD
Ally’s IRA High Yield CDs are similar to its standard high-yield CDs, but come in traditional, SEP or Roth IRAs.
IRA Raise Your Rate CD
This bump-up CD is available in two- and four-year terms and in Roth, traditional or SEP IRA versions.
Ally Bank Money Market Accounts
4.4
| Ally Bank Money Market Account | Minimum Opening Deposit | Minimum Account Balance | Monthly Service Fee | APY* |
|---|---|---|---|---|
| Money Market Account | $0 | $0 | $0 | 4.20% |
*APY accurate as of September 3, 2024
Ally Bank Money Market Account Overview
There’s just one Ally bank money market account, which earns a competitive APY, and we score it 4.4 stars.
Pros and Cons
Pros No fees: There are no monthly service fees or excessive transaction fees. High interest rate: Ally’s Money Market Account earns a competitive APY on all balance tiers. ATM access: This account comes with access to unlimited ATM withdrawals, a large ATM network without fees and up to $10 in reimbursem*nts per statement cycle for out-of-network ATM fees. Cons Limited withdrawals: Certain types of withdrawals are limited to 10 per statement cycle. Limited features: You won’t get access to online bill pay or savings buckets.
Ally Bank Money Market Account
Money Market Account
Ally’s Money Market Account comes with checks and a debit card. You can make an unlimited number of withdrawals with your debit card at any Allpoint ATM. However, you’re limited to 10 withdrawals made in other ways during each statement cycle, such as writing checks or usingpeer-to-peer payments.
Ally MMAs also don’t offer an online bill pay option or Ally’s savings buckets feature.
Ally Bank Reputation and Customer Satisfaction
Ally generally has a positive reputation as a financial institution, earning an A rating from the Better Business Bureau and receiving a rating of 5 out of 5 stars from Bauer Financial, an independent bank and credit ratings company. However, customer service ratings do not score the same high marks.
The bank’s Android app receives 2.6 out of 5 stars on Google Play, while the Apple App Store has a rating of 4.7 out of 5 stars.
In 2013, the Consumer Financial Protection Bureau (CFPB) and the Department of Justice ordered Ally Financial Inc. and Ally Bank to pay $80 million in damages for discriminatory lending practices, where it charged higher interest rates for auto loans based on borrowers’ race or national origin. We reach out to Ally for comment on this matter but did not receive a response.
Since then, Ally has implemented a diversity, equity and inclusion initiative and hired a Chief Diversity Officer. Some of the programs include the launching of an entrepreneurial program aimed at students from historically Black colleges and universities and donating millions to local communities in support of social equity, economic mobility and COVID relief.
Ally Bank vs. Other Top Banks
Ally is a top choice when compared with other large U.S. banks. It offers a variety of bank accounts and can offer higher APYs than its brick-and-mortar peers in many cases.
Although it doesn’t offer the ability to bank in person or deposit cash, Ally Bank customers can access nearly three times the number of ATMs as competing banks such as Chase, Wells Fargo and Bank of America. Additionally, none of Ally’s deposit accounts have minimum opening or balance requirements.
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|---|---|---|---|---|
| Our Rating | 4.5 | 4.0 | 3.8 | 4.0 |
| Savings APY | 4.20% | 0.01% | 0.05% | 0.01% |
| 1-Year CD APY | 4.50% | 0.01% | 1.50% | 0.03% |
| Number of Branch Locations | Online Only | 4,700 | 4,600 | 3,800 |
| Number of ATM Locations | 43,000 | 15,000 | 11,000 | 15,000 |
| Available Deposit Products | Checking, Savings, CDs, Money Market | Checking, Savings, CDs | Checking, Savings, CDs | Checking, Savings, CDs |
|
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| |
|---|---|---|---|---|
| Our Rating | 4.5 | 4.0 | 3.8 | 4.0 |
| Savings APY | 4.20% | 0.01% | 0.05% | 0.01% |
| 1-Year CD APY | 4.50% | 0.01% | 1.50% | 0.03% |
| Number of Branch Locations | Online Only | 4,700 | 4,600 | 3,800 |
| Number of ATM Locations | 43,000 | 15,000 | 11,000 | 15,000 |
| Available Deposit Products | Checking, Savings, CDs, Money Market | Checking, Savings, CDs | Checking, Savings, CDs | Checking, Savings, CDs |
*The bank offers a low fee that is waivable if at least one requirement is met, such as a recurring direct deposit, a minimum monthly balance or a linked savings account. Requirements vary by bank.
Today’s Top Banking Offers
You could get over 10 times** the average national savings account rate with our featured partners below.
*Annual Percentage Yield
**Accurate as of August 2024, assuming FDIC average savings rate of 0.46% and $2,500 deposit.
The Bottom Line: Is Ally Bank Right for You?
Ally could be a great option for anyone seeking a full-service bank insured by the FDIC that offers high-yield deposit accounts without any minimum opening deposit or balance requirements.
Since the bank is only online, it can offer lower fees and higher interest rates than banks with physical branches and more overhead. Those who aren’t comfortable banking online or through a mobile app or simply want to have an in-person banking experience should opt for a traditional, brick-and-mortar bank instead of an online bank like Ally.
FAQ: Ally Bank Reviews
Ally Bank is a reliable bank with all deposits insured by the FDIC up to $250,000 per depositor for each qualifying account ownership category.
The main downsides of Ally Bank are related to it being an online-only bank. You can’t do any of your banking in person and you also can’t deposit cash to your account. Someone who prefers in-person banking or frequently has to make cash deposits will find this makes the bank an unappealing option.
Deposits with Ally Bank are safe since they are insured by the FDIC. Additionally, Ally says customers will not be held liable for any unauthorized online or mobile banking transaction as long as they report it to the bank within 60 days of receiving their statement.
Learn More About Ally Bank
See how Ally stands out in our roundups of the best financial institutions and deposit products available today:
- #2 on Best CD Rates
- #2 on Best 1-Year CD Rates
- #3 on Best Banks and Credit Unions
- #3 on Best IRA CD Rates
- #7 on Best Money Market Account Rates
Methodology
Our team researched more than 100 of the country’s largest and most prominent financial institutions, collecting information on each provider’s account options, fees, rates, terms and customer experience. We then scored each firm based on the data points and metrics that matter most to potential customers. Read our full methodology.
- Savings and money market accounts (35% of total score): The best scores go to banks, loans and fintech companies with high interest rates and low or no fees or minimum opening deposits.
- Checking accounts (30% of total score): High marks are given to those with multiple accounts and minimal fees, plus benefits such as reward programs and mobile check deposit.
- Certificates of deposit (20% of total score): Top-rated financial institutions have low or no minimum opening deposits, as well as a variety of term options and specialty CDs for flexibility.
- Banking experience and access (15% of total score): Providers that excel in this category have large branch and ATM networks and multiple checking and savings accounts, and they earn more points for offering CDs and money market accounts.
All America Bank, Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Airlines Credit Union, American Express National Bank, Apple Bank, Arvest Bank, Associated Bank, Axos Bank, Banesco Bank, Bank of America, Bank of Hope, Bank Purely, Bank5 Connect, Barclays, Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO, BMO Alto Bank, Bread Savings (formerly Comenity Direct), BrioDirect, Capital One Bank, CFG Bank, Charles Schwab, Charlie Financial, Chase Bank, Chime, CIBC USA, CIT Bank, Citibank, Citizens, Citizens Bank, Colorado Federal Savings Bank, Comerica Bank, Connexus Credit Union, Consumers Credit Union, Credit One Bank, Cross River Bank, Current, Customers Bank, Delta Community Credit Union, Discover Bank, East West Bank, Emigrant Direct, EverBank (formerly TIAA Bank), Federal Savings Bank, Fifth Third Bank, First Citizens Bank, First Internet Bank (of Indiana), First National Bank of America, First Tech Federal Credit Union, FNBO Direct, Frost Bank, Golden 1 Credit Union, Heritage Bank NA, HSBC, Huntington Bank, KeyBank, Lafayette Federal Credit Union, Lake Michigan Credit Union, LendingClub, Limelight Bank, Live Oak Bank, Lonestar Bank, M.Y. Safra Bank, M&T Bank, Marcus by Goldman Sachs, Mercury Bank, Merrick Bank, Michigan State University Federal Credit Union, Milli, Morgan Stanley Private Bank, Mountain America Credit Union, My eBanc, MySavingsDirect, National Bank of Kansas City, Navy Federal Credit Union, NBKC Bank, North American Savings Bank (NASB), Northpointe Bank, Patelco Credit Union, PenFed Credit Union (Pentagon Federal), PNC Bank, Popular Direct, Presidential Bank, Provident Bank, Quontic Bank, Quorum Federal Credit Union, Randolph-Brooks Federal Credit Union, Regions Bank, Ridgewood Savings Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Service Credit Union, SoFi Bank, South State Bank, Spectrum Credit Union, Spring Bank, Star One Credit Union, State Bank of Texas, State Department Federal Credit Union, State Employees’ Credit Union, Suncoast Credit Union, Sutton Bank, Synchrony Bank, Synovus Bank, TD Bank, Texas Capital Bank, Third Federal Savings & Loan, Transportation Alliance Bank (TAB Bank), Truist Bank, U.S. Bank, UFB Direct, Umpqua Bank, Upgrade, USAA Bank, USAlliance Financial, Valley National Bank, Varo Bank, Vio Bank, VyStar Credit Union, Webbank, Webster Bank, Wells Fargo, Western State Bank, Zions Bank, Zynlo Bank
*Data accurate at time of publication
Editor’s Note: Parts of this story were auto-populated using data from Curinos, a research firm that collects data from more than 3,600 banks and credit unions. For more details on how we compile daily rate data, check out our methodology here.
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.com.
