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Ally Bank Review 2021: Is Ally Bank Legit & Worth it?

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Ally Bank Review

Ally Bank logo

Ally Bank is a leading company providing digital financial services. The company offers a full-service online bank with competitive fees, no minimums and 24/7 customer service.

Legit & Safe

Account Fees

Banking Products

Customer Service

Pros

  • No monthly maintenance fees or minimum balances on checking, savings and CD accounts
  • An above-average annual percentage yield (APY) of 0.50% on savings.
  • Access to over 43,000 free ATMs 
  • 24/7 customer support 

Cons

  • No way to deposit cash
  • No physical branch available

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What is Ally Bank & How Does it Work?


Ally Bank is a leading company providing digital financial services. The company offers a full-service online bank with competitive fees, no minimums and 24/7 customer service.

Here’s the full list of banking services Ally Bank offers:

  • Checking
  • Savings
  • Money Market
  • Certificate of Deposit (CD)
  • Mortgages
  • Auto loans
  • Personal loans
  • Investing services
  • Retirement services

In order to further simplify how you do your online banking, Ally Bank offers you mobile apps for iPhone and Android smartphones. These apps allow you to manage all your accounts and make transfers on the go.

Is Ally Bank Safe & Legit?


Yes, Ally Bank is absolutely safe and legit institution. Even though this bank is 100% online and doesn’t have any physical locations like traditional banks, Ally still has to follow the same legal rules and regulations to be allowed to operate.

That’s why Ally Bank holds the Federal Deposit Insurance (FDIC) that protects and insures your accounts with up to $250,000.

Ally Bank Fees


The best thing about Ally Bank is that they offer no fees on their banking services. This means, there are no setup or monthly maintenance fees on checking, savings and CDs accounts.

Cashing out your money from over 43,000+ Allpoint ATMs is also free of charge.

Although, they have an overdraft fee of $25.

Ally Bank Account Types


Ally Bank offers different types of accounts for your different banking needs. Let’s take a look at each of the accounts you can open with Ally Bank. 

Ally Bank Online Savings Account

Ally Bank offers an Online Savings Account that pays a relatively high APY (annual percentage yield) on your deposits of any amount. 

Here’s all the features Online Savings Account includes:

  • 0.50% on your deposits
  • No minimum initial deposit
  • Fund your savings account from any other account, checks, wiring funds or mobile check deposit
  • Withdraw your funds to any of your Ally Bank accounts, request a check or an outgoing wire
  • Organize your financial goals – save for home improvement, new car, vacation, etc.
  • No monthly fees

Ally Bank Interest Checking Account

Ally Bank offers an Interest Checking Account that rewards you for just doing banking with them.

Here’s what you can expect from this account:

  • Earn 0.10% on balances of less than $15,000
  • Earn 0.25% on balances of $15,000 or more
  • No monthly maintenance fees
  • Use any of 43,000+ no-fee Allpoint ATMs

Ally Bank Money Market Account

Ally Bank’s Money Market Account is basically a conjunction of checking and savings accounts. This means, you can earn interest on your balance while you can spend your money anytime as well.

Certificates of Deposit (CDs)

Ally Bank High Yield CD

For when you want to not just save but also grow your money, Ally Bank offers a variety of CDs (Certificates of Deposits), including what they call a High-Yield CDs

This is a traditional CDs account that requires your commitment to leave your funds with the bank for a specific time period. But unlike traditional CDs, Ally Bank offers a higher annual percentage yield (APY) on your funds.

In return for leaving your funds with the bank for the specific time period, the bank will pay you higher rates at issue compared to more flexible options like savings accounts.

The best part is, you have the flexibility to choose the term for your high yield CDs.  And the bank offers different APYs for different terms. For example, you can get a higher annual percentage yield if you open your CDs account for 1 year compared to a 3-month period.  

Ally Bank high yield CD rates:

TermAPY (Annual Percentage Yield)
3-Month0.20%
6-Month0.25%
9-Month0.30%
12-Month0.60%
18-Month0.60%
3-Year0.65%
5-Year0.85%

When you open your high-yield CD account with Ally Bank, there is no minimum deposit required to get started. 

Another advantage of a high-yield CDs account at Ally Bank is that there is no minimum deposit required to get started. On the other hand, other banks usually require a minimum deposit of at least $500. This condition is especially beneficial for when you don’t want to commit higher amounts.

Raise Your Rate CDs

Ally Bank offers the ‘Raise Your Rate CDs’, which have a potential that their rates go up, eliminating the situation where you get stuck with the low CD rate for several years.

What does this mean? Well, let’s say you opened your account for a 3-year period at the rate of 0.65%. However, after some time, Ally changed their conditions and increased their APY up to 0.70%. In this case, you have the opportunity to request a APY raise on your existing CDs account.

No Penalty CDs

Typically, when you open a CDs account, you’re required to leave your money in the account for a predetermined period of time. But things happen and you might need your money at any given moment. If you suddenly decide you want to cash out your money and use it, you would get a penalty.

But Ally Bank offers a No Penalty CDs account where your funds are liquid and you can withdraw 100% of your money after the first 6 days of opening your account. 

The No Penalty CDs at Ally Bank are 11-month CDs and you’ll get 0.50% on deposits of any amount.

How to Open an Ally Bank Account?


Ally Bank offers various account types you can choose based on your needs. You can also choose multiple features and manage them all in one Ally Bank account.

In order to get started and open any of your Ally Bank accounts, simply visit Ally.com, select any of your preferred account types. You can find accounts in the header section of the website and click the button to open your account.

Alternatively, you can call Ally Bank at 1-877-247-2559 to request opening an account.

Be aware that just like with any financial institution, you’ll be required to provide your personal and legal information when opening a bank account.

Once you have opened your Ally Bank account, you can download the Ally Bank app on your iPhone and Android and log in.

Ally Bank Pros & Cons


Pros

  • No monthly maintenance fees or minimum balances on checking, savings and CD accounts
  • An above-average annual percentage yield (APY) of 0.50% on savings.
  • Access to over 43,000 free ATMs 
  • 24/7 customer support 
  • A well-designed and self-explanatory platform

Cons

  • No way to deposit cash
  • No physical branch available

Ally Bank Alternatives


Ally Bank vs Revolut

Revolut Summary

  • Allows you to hold different currencies
  • From $300 per month ATM Wwithdrawals for free
  • Perks such as travel insurance
  • Ever expanding features

While Revolut is a great alternative to Ally Bank when it comes to investing, the 2 platforms have their differences. First of all, Ally Bank has low trading and non-trading fees while Revolut offers free stock trading. Plus, Ally Bank offers a more diverse product portfolio compared to Revolut.

Ally Bank vs Chime Bank

Chime Bank is a good alternative to Ally Bank. And while the both banks offer online banking with the same features and account options, there’s not much difference between the two.

Plus, both of them offer no fees on their basic accounts.

However, the only advantage Ally Bank offers is a reimbursement of $10 on out-of-network ATM withdrawals every month, which Chime doesn’t.

Ally Bank vs CIT Bank

One of the major alternatives to Ally Bank is CIT Bank. While CIT Bank offers multiple high interest savings accounts and CDs, Ally Bank is best for online interest checking accounts. 

Moreover, Ally Bank is more convenient for people with any amount of funds in their bank. It’s true that CIT Bank offers higher savings rates than Ally does, but they have a minimum balance requirement of $25,000 for higher APYs, whereas Ally offers lower rates, but has no minimum balance requirements.

Is Ally Bank Worth it?


In general, I would say Ally Bank is worth serious consideration if you’re interested in saving and growing your money with higher rates than typical. 

Plus, there are no minimum deposit requirements and the bank offers low fees, not to mention the ability to manage all your accounts online.

Ally Bank

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