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Ally Bank Review: Leading Rates on a Variety of Banking Products

Review Updated
Kailey Hagen
Matt Frankel, CFP®
By: Kailey Hagen
Kailey Hagen
Kailey Hagen
Writer

Kailey Hagen has been writing about small businesses and finance for almost 10 years, with her work appearing on USA Today, CNN Money, Fox Business, and MSN Money. She specializes in personal and business bank accounts and software for small to medium-size businesses. She lives on what's almost a farm in northern Wisconsin with her husband and three dogs.

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 and  Matt Frankel, CFP®
Matt Frankel, CFP®
Matt Frankel, CFP®
Writer, Analyst

Matt is a Certified Financial Planner™ and investment advisor based in Columbia, South Carolina. He writes personal finance and investment advice for The Ascent and its parent company The Motley Fool, with more than 4,500 published articles and a 2017 SABEW Best in Business award. Matt writes a weekly investment column ("Ask a Fool") that is syndicated in USA Today, and his work has been regularly featured on CNBC, Fox Business, MSN Money, and many other major outlets. He’s a graduate of the University of South Carolina and Nova Southeastern University, and holds a graduate certificate in financial planning from Florida State University.

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Our Banking Experts

Ashley Maready
Check IconFact Checked Ashley Maready
Ashley Maready
Ashley Maready
Writer and Editor

Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page. APY = Annual Percentage Yield. APYs are subject to change at any time without notice.

Ally Bank is one of the most popular options for those looking to leave brick-and-mortar banking behind thanks to its high APYs and minimal fees. Even though it only offers one checking account and one savings account, both are among the best we've seen. And they have no minimum balance requirements.

Check out our full Ally Bank review below to learn more about these accounts as well as everything else Ally has to offer.

Award Icon 2024 Award Winner
Offer image for
Member FDIC.

Ally

Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Bottom Line

Ally Bank offers a wider selection of banking products than most online banks, and its APYs are among the most competitive in the industry. The bank also charges minimal fees and requires no minimum balances. It's garnered a large following and a reputation for great customer support.

Pros
  • High customer satisfaction ratings
  • Competitive APYs
  • Loyalty bonuses on CDs
  • No minimum balance requirements
Cons
  • No brick-and-mortar branches

  • Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.

    These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.

    We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.

    Learn more about how The Motley Fool Ascent rates bank accounts.

Is Ally Bank right for you?

Ally Bank is a smart choice for you if:

  • You want high interest rates with minimal fees.
  • You want a bank that offers a wide variety of banking products, including deposit accounts, loans, and investment products.
  • You're comfortable managing your money entirely online.

Savings accounts

The Ally Savings account charges no monthly maintenance fees. Plus, it offers one of the most competitive APYs we've seen. There are no minimum balance requirements to open the account or to earn interest.

The account also stands out for its strong online and mobile management tools, plus its built-in budgeting features that help you save for your financial goals. Those features include a digital envelope system, recurring transfers, and "Surprise Savings." That last feature analyzes your linked Ally Bank checking account and transfers safe-to-save money to your savings every month. You can turn this feature off if you don't want to use it.

Ratings Methodology
Rates as of Jun 28, 2024

Ally Savings

Read Review
Member FDIC.
Rating image, 4.75 out of 5 stars.
4.75/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.75 out of 5 stars.
4.75/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Read Review
APY
4.25%
Min. To Earn APY
$0
  • Competitive APYs
  • No monthly maintenance fees
  • Saving buckets to separate savings by goals
  • No minimum balance requirements
  • No local branches
  • No cash deposits

Ally Online Savings features a competitive APY on all balances, with no fees or minimums. Customers also have access to several tools like savings buckets, recurring transfers, and roundups to maximize savings opportunities.

Compare savings rates

Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.

Account APY Promotion Next Steps
up to 4.60%
Rate info Circle with letter I in it. You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
New customers can earn up to a $300 bonus with qualifying direct deposits!
4.25%
Rate info Circle with letter I in it. See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.
Min. to earn: $0
N/A
4.25%
Rate info Circle with letter I in it. 4.25% annual percentage yield as of June 28, 2024
Min. to earn: $1
N/A

Certificates of deposit

Ally Bank offers three types of certificates of deposit (CDs): High Yield CDs, Raise Your Rate CDs, and No Penalty CDs.

Ally High Yield CDs

Ally High Yield CDs have no minimum opening deposit, and offer terms ranging from three months to five years. Its rates are among the best we know of, and if you choose to renew your CD for another term, or open a new Ally High Yield CD once your initial term is up, it rewards you with a bonus APY increase for loyalty. The bank also offers a unique Ally Ten Day Best Rate Guarantee, so if rates go up within 10 days of opening a CD, Ally will raise yours automatically.

Rates as of June 7, 2024

APY = Annual Percentage Yield

Offer image for Ally High Yield CD
Ally High Yield CD
Bottom Line

Ally High Yield CDs are notable for saver-friendly features like no minimum deposits and lower-than-average withdrawal penalties (though you're still better off holding through your CD term!). The rates are generally not at the very top of the market, but they tend to not be far off.

MINIMUM DEPOSIT $0
Read Review
3 Mo. APY 6 Mo. APY 9 Mo. APY 1 Yr. APY 1.5 Yr. APY 3 Yr. APY 5 Yr. APY
3.00% 4.40% 4.25% 4.50% 4.25% 4.00% 3.90%

  • Ally's Raise Your Rate CDs offer a 2- or 4-year term. If you go with a 2-year term, you can raise the rate once during the term if Ally's rates for new Raise Your Rate CDs are higher than your current rate. If you choose the 4-year term, you can raise your rate twice. These CDs also come with loyalty bonus 0.05% APY increases for customers who renew or open a new CD after the initial term ends. One downside is that Ally's Raise Your Rate CDs offer APYs that are a bit lower than those offered for standard CDs with comparable terms. But if you want to benefit from potential rising rates while still having a guaranteed yield, these could be worth a look.

  • Ally Bank's No Penalty CDs have a single 11-month term, and let you withdraw your deposit plus any interest earned penalty free any time after the first six days from account opening. The rates aren't quite as high as Ally's other CD rates, but they are not far off and are still competitive, especially compared to CDs offered by brick-and-mortar banks. Customers who stick it out until the end of the term are rewarded with a loyalty bonus if they renew, and the No Penalty CD is also subject to Ally's 10-day best rate guarantee.

Checking accounts

Ally offers a checking account, which it calls the Spending Account, with some unique features, which may appeal to new customers:

Ally Spending Account

The Ally Spending Account lets all customers earn interest, though those with larger balances earn a higher rate. Like its other bank accounts, Ally's checking account doesn't have minimum balance requirements or annual fees.

The bank doesn't have physical branches, but its mobile apps and online banking account let you transfer funds, pay bills online, and remotely deposit checks. When you need cash, you can use more than 43,000 Allpoint ATMs for free with your Ally Bank debit card. Ally also provides out-of-network ATM fee reimbursements of as much as $10 each month.

Ratings Methodology
Rates as of Jun 28, 2024

Ally Spending Account

Read Review
Member FDIC.
Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Read Review
APY
up to 0.25%
Min. To Earn APY
$1
  • Strong online and mobile tools
  • No monthly maintenance or overdraft fees
  • Monthly ATM fee reimbursements
  • Competitive APY
  • Early direct deposit
  • Higher APY available at other financial institutions
  • No physical locations
  • No cash deposits

The Ally Spending Account is an appealing option for those who are comfortable managing their money online. Its monthly ATM fee reimbursements give you the freedom to access your cash wherever you need to. That, plus its APY, means you should only make money with this account.

Customer Experience

Ally Bank's customer satisfaction is a strong point. It had the third-highest score in the J.D. Power 2023 U.S. Direct Banking Satisfaction Study, and it currently has an A rating with the Better Business Bureau.

Ally doesn't have branches, so you have to be comfortable doing most of your account management online and reaching out via phone, live chat, or email when you have questions. Ally has customer support representatives standing by 24/7 to assist you.

Relationship benefits

Online banks rely on high APYs and few fees to draw customers in. Brick-and-mortar banks, which can't afford to compete with online banks on those fronts, fall back on relationship benefits like waived fees or higher APYs for opening multiple accounts and keeping larger sums at the bank.

The only thing Ally offers that resembles a relationship benefit is the bonus APYs for customers who renew CDs at the end of the term. This isn't something you see with many banks -- online or brick-and-mortar -- but it's not something everyone will be interested in.

That said, there's still plenty to appreciate about Ally, and it doesn't need special relationship benefits to entice new customers to join.

How does Ally Bank compare?

Ally vs SoFi Bank

SoFi Bank is another online bank that offers competitive APYs and no monthly maintenance fees on deposit accounts. It's one of the few online banks we've seen that actually has a product range as impressive as Ally's, and it offers some compelling relationship discounts that could be appealing if you're planning to do all of your banking with one institution.

Ally vs Capital One Bank

Capital One Bank is a hybrid brick-and-mortar and online bank. It has branches in a few states, but many of its customers bank entirely online. Its APYs are more in line with online bank rates than with their brick-and-mortar cousins, and it has a good variety of banking products to choose from.

FAQs

  • Yes, Ally Bank is an FDIC-insured financial institution. It was formerly a subsidiary of General Motors, known as GMAC Financial, and was separated and renamed following the Great Recession. While auto lending is still a major focus of Ally, it has evolved into a full-service consumer bank with several different types of bank accounts and loans.

  • The biggest downside to banking with Ally Bank is that it is a 100% online bank with no branches. So, if you need in-person assistance, or frequently need to deposit cash into your bank account, you might be better off with a branch-based financial institution.