Ally is an online-only bank.
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The bottom line: Ally is a strong online bank overall. Its best products are probably its Ally High Yield Savings Account and Ally IRA High Yield Certificate of Deposit (CD).
Pros and cons
ProsCons
Competitive rates on savings and CDs
No monthly fees
$0 minimum opening deposits
Savings account that makes it easy to save for separate goals
No overdraft fees
Online-only bankCan’t deposit cashDoesn’t have a rewards checking account
Ally High Yield Savings Account
Ally High Yield Savings pays a high interest rate. Ally also doesn’t require a minimum opening deposit, and it doesn’t charge monthly service fees.
Ally makes it easy to save for specific goals. Assign each account a nickname, like “Emergency Fund” or “Travel Account” to track your progress and stay motivated. You may decide to open a separate account for each goal, but Ally has a bucket feature that allows you save for multiple goals in one account.
Ally Interest Checking Account
The Ally Interest Checking Account is a solid low-fee checking account. 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.
If you have a savings or money market account through Ally, then you can set up overdraft protection to transfer funds from another account into your checking account should you risk overdrawing.
Ally High Yield Certificate of Deposit
Ally pays competitive rates on its CDs, and it’s one of the few banks that doesn’t require a minimum opening deposit. Most banks ask you to put down hundreds or thousands of dollars to open a CD, but you can open an Ally High Yield CD with any amount.
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 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 No Penalty CD.
Ally Money Market Account
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.
How Ally works
Ally offers a wide range of products. Along with its bank accounts, you can also open investment accounts, take out a mortgage, or refinance your home.
Ally is an online-only bank, but it has physical ATMs. 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.
The Ally mobile app has received 4.7 out of 5 stars in the Apple store, and 3.9 out of 5 stars in the Google Play store.
Live customer service is available 24/7, both by phone and online chat.
Your money is FDIC insured for up to $250,000, or $500,000 if you have a joint account.
Ally trustworthiness and BBB rating
The Better Business Bureau gives Ally a C- rating, because Ally has received numerous complaints on the website.
The BBB measures trustworthiness by looking at how a company responds to customer complaints. It also checks whether a business is honest in its advertising and transparent in how it conducts business.
On the plus side, Ally doesn’t have any recent public scandals. So if the BBB rating doesn’t bother you, you may decide you’re comfortable banking with Ally.
Ally vs. Marcus
We compared Ally with two other online banks with competitive rates: Marcus by Goldman Sachs and Capital One.
Ally
Goldman Sachs
Savings APY
0.60% APY
Savings APY
0.60% APY
Minimum deposits
$0
Minimum deposits
$500 for CDs
Ally Ally High Yield Savings AccountGoldman Sachs Marcus by Goldman Sachs High Yield Online Savings Account
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.
Both banks offer term and no-penalty CDs, but Marcus doesn’t have anything like the Ally Raise Your Rate CD that lets you increase your rate during the term. You may prefer Marcus for a no-penalty CD, though. Ally only has an 11-month CD, but Marcus has terms for seven, 11, and 13 months.
Ally review vs. Capital One review
Ally
Capital One 360
Savings APY
0.60% APY
Savings APY
0.50% APY
Minimum deposits
$0
Minimum deposits
$0
Ally Ally High Yield Savings AccountCapital One Capital One 360 Performance Savings™
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.
Although Capital One is considered an online bank, it does have over 470 physical branches in eight 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.