Ally is a solid choice if you want low fees and competitive rates, but it works best for people comfortable banking online
Ally Bank is a fully online bank owned by Ally Financial, a publicly traded company. It offers checking and savings accounts, money market accounts, CDs, and auto loans. The main draw is low or zero fees on most products and interest rates that typically beat traditional banks. The main limitation is that Ally has no physical branches—everything happens through their website, mobile app, or phone.
Whether Ally is right for you depends on what you need from a bank. If you deposit checks by phone, pay bills online, and rarely need cash, Ally works well. If you need to walk into a branch, deposit cash regularly, or want a relationship with a local banker, Ally is not the right fit.
Key Takeaways
- Ally charges no monthly maintenance fees on checking or savings accounts, and no overdraft fees if you stay opted out of overdraft protection.
- Ally's interest rates on savings and money market accounts are typically higher than national averages, though rates change with the Federal Reserve.
- Ally has no physical branches, so you cannot deposit cash in person or speak to someone face-to-face about account problems.
- Ally reimburses ATM fees charged by other banks, which partly offsets the lack of its own ATM network.
- Ally's customer service is available by phone and chat, but response times and problem resolution vary.
Checking and savings accounts: fees and features
Ally's checking account has no monthly maintenance fee, no minimum balance requirement, and no overdraft fees if you decline overdraft protection. The account comes with a debit card, online bill pay, and mobile check deposit. You can set up automatic transfers and recurring payments.
The savings account also has no monthly fee and no minimum balance. Interest accrues daily and compounds daily, which means you earn interest on your interest. The rate Ally offers changes based on Federal Reserve decisions, so it is higher in some years and lower in others. As of early 2024, Ally's savings rate was competitive with other online banks, but you should check the current rate before opening an account because rates shift frequently.
One real limitation: you cannot deposit cash directly into an Ally account. You can deposit checks by phone using their mobile app, but if you receive cash regularly or need to deposit coins, you will need a second bank with physical locations or an ATM network.
ATM access and cash withdrawal
Ally reimburses ATM fees charged by other banks, up to a certain amount per month (this limit varies, so confirm the current policy before relying on it). This means you can use any ATM and get your fee back, rather than being limited to Ally's own network. In practice, this works well in cities and suburbs where ATMs are plentiful, but less well in rural areas where ATM options are sparse.
The reimbursement is not automatic—you have to request it or it may appear as a separate credit on your statement. Check your account regularly to make sure the fees are being refunded.
Interest rates and CD terms
Ally offers CDs (certificates of deposit) with terms ranging from three months to five years. The rates are typically competitive with other online banks. When you open a CD, the rate is locked in for the full term, so you know exactly what you will earn. If you withdraw money before the term ends, you pay an early withdrawal penalty—the amount depends on the CD term, so read the terms before committing.
Ally also offers a money market account, which is a hybrid between a checking and savings account. It usually pays a higher interest rate than a regular savings account but may have limits on how many withdrawals you can make per month. Check the current terms because these rules can change.
Interest rates across all products are set by Ally and change over time. You should compare Ally's current rates to other online banks before opening an account, because the "best" rate shifts as banks adjust their offerings.
Customer service and problem resolution
Ally offers customer service by phone and online chat during business hours. Phone support is available seven days a week, though wait times vary. Chat support is available during weekday business hours. There is no in-person support at a branch.
For common issues—resetting a password, checking a balance, disputing a transaction—phone and chat usually work fine. For complex problems—a large deposit that is held, a dispute that requires investigation, or an error on your statement—the lack of a branch can be frustrating because you cannot sit down with someone and walk through the problem together. You will need to handle everything by phone or email, which can take longer.
Security and FDIC protection
Ally Bank is FDIC-insured, which means deposits up to $250,000 per account type are protected if the bank fails. This is the same protection you get at any FDIC-insured bank. Ally uses encryption and multi-factor authentication to protect your login, and you can set up fraud alerts on your debit card.
If your debit card is lost or stolen, you are protected under federal law—your liability is zero if you report it within two business days, and limited to $50 if you report it later. This is standard across all banks.
When Ally makes sense and when it does not
Ally works well if you: deposit checks by phone, rarely need cash, pay most bills online, are comfortable troubleshooting problems by phone, and want to avoid monthly fees. It also works well as a second account—for example, a high-yield savings account where you park money you do not need to access immediately.
Ally is not a good fit if you: deposit cash regularly, need to speak to someone in person, live in an area with few ATMs, or prefer a relationship with a local bank. It is also not ideal if you have frequent account problems or disputes, because resolution takes longer without branch access.
Many people use Ally alongside a traditional bank: they keep their main checking account at a bank with branches, and open a savings account at Ally to earn a higher interest rate. This gives you the best of both worlds—branch access when you need it, and better rates on money you are saving.
Frequently Asked Questions
Can I deposit cash at an Ally ATM?
Ally has no physical ATM network of its own. You can withdraw cash at any ATM and get the fee reimbursed, but you cannot deposit cash. If you need to deposit cash, you will need a second bank with ATMs or branches that accept deposits.
What happens if I overdraft my Ally checking account?
If you decline overdraft protection, transactions will be declined if you do not have enough money—no fee, no overdraft. If you opt into overdraft protection, Ally will cover the transaction but may charge a fee. You can change this setting anytime in your account.
How long does it take to resolve a disputed transaction?
Ally typically investigates disputes within 10 business days and issues a provisional credit while the investigation is ongoing. The full resolution can take 30 to 60 days depending on the complexity. Without branch access, you will handle the entire process by phone or email.
Is my money safe at Ally if the bank fails?
Yes. Ally Bank is FDIC-insured, so deposits up to $250,000 per account type are protected. This is the same protection you have at any FDIC-insured bank, whether online or traditional.
Can I transfer money between Ally and another bank?
Yes. You can link external bank accounts and transfer money in and out. Transfers typically take one to three business days. You can also set up direct deposit from your employer or receive ACH transfers from other sources.