Tired of doing business with megabanks that rake in money by charging fees on everything from overdrafts to monthly charges? If so, you’re in the right place. I decided to write an Ally Bank review to introduce you to the online bank that my family and I have been using for 10 years.
You’ll get the inside scoop on Ally, its competitors, and the family-friendly features it has to offer. I’ll even fill you in on how to get a $100 welcome bonus if you decide that Ally is the right choice for your family.
What is Ally Bank?
Ally Bank is an online-only bank, which allows it to offer perks you’d be hard-pressed to find at brick-and-mortar competitors. But unlike many other digital banks, Ally has a history that dates all the way back to 1919.
It was originally founded as GMAC, a division of General Motors that helped dealers finance their inventory. It wasn’t until 2009 that GMAC rebranded as Ally, which now offers everything from checking and high-yield savings accounts to auto loans and retirement accounts.
To welcome new customers, Ally is offering a $100 welcome bonus.
Ally Bank Review: Best Features
Let’s dig into how Ally has earned a reputation as one of the best online banks on the market. Here are some of the top perks Ally has to offer.
No fees
A recent survey by EY-Parthenon revealed that the average American racks up $311 every year on payment and banking fees! Ready to leave bank fees in the rearview?
With Ally, you can open an FDIC-insured checking account in minutes that comes with perks like:
- No monthly fees
- No minimum balance requirements
- No overdraft fees
- Over 75,000 fee-free ATMs
- $10/month reimbursement for out-of-network ATMs
If you sign up for direct deposit, you can also access your paycheck up to two days earlier. It’s even possible to set up Ally bank accounts for kids, but more on that later.
High APY on Savings
Who says saving money has to mean letting it just sit around collecting dust? Ally offers a high-yield savings account with an APY that’s 5x the national average.
That makes it a lot easier to help your savings keep up with inflation, especially since there are no maintenance fees or balance requirements.
Buckets Feature
Ally’s savings accounts also come with a cool feature called “savings buckets.” Think of it kind of like a digital envelope system.
Buckets let you split your savings into different categories so that you can track your goals, all while earning interest on your total balance.
Excellent customer service
Ally offers 24/7 support that allows you to connect with an actual human at any time. You can get in touch over the phone or via secure chat or email.
Wide Variety of Products
Ally is one of those banks that really does have something for everyone. You can pick and choose the accounts you need or use it as a one-stop-shop for all your financial needs. In addition to checking and savings accounts, Ally Bank also offers:
Money Market Accounts
Think of a money market account as a savings account with limited built in checking capabilities. Overall, these accounts are a solid place to park things like your emergency fund, since they come with a cap of 10 withdrawals per cycle.
Not only do Ally’s money market accounts offer a competitive APY, but they also come with a free debit card and checks.
Investing Accounts
Ally Bank also offers several different types of brokerage accounts for investors of every level. You can open an auto-investing account with a $100 minimum deposit or open a self-directed investing account with no minimum.
If you’d prefer to work with a pro, Ally will also match you with a dedicated fiduciary who can help you create a plan for your goals.
Retirement Accounts
Ally also offers tax-advantaged Traditional and Roth IRAs to help you save for retirement. If you go this route, you’ll also be able to choose from self-directed, automated, or professionally advised options.
There’s also a Rollover IRA option, if you’ve got any old employer-sponsored retirement plans that could use consolidating!
CDs
If you are looking to lock in solid APYs, Ally offers several great CD options. Their choices include contenders like no-penalty CDs and high-yield CDs with 3-month to 5-year term options.
Credit Cards
Ally also offers several credit cards with cash back rewards, but just be sure to pay close attention to the interest rates. At the moment, the APYs all range from 20-29%.
Unless you can pay off your balance in full each month, the interest could easily eclipse any cashback benefits.
Auto Loans
Given Ally’s beginnings in the automotive world, it’s no surprise that they offer a full range of auto products. You can choose from personal or business vehicle refinancing, auto refinancing, or vehicle protection.
Ally Bank Review: Things to Be Aware Of
In the interest of a well-rounded Ally Bank review, let’s take a look at several things worth considering. This should help you decide whether Ally is right for you and avoid any unpleasant surprises.
No physical branches
The fact that Ally is an online-only bank is part of what allows them to offer higher APYs and fewer fees than brick-and-mortar competitors. The trade-off, of course, is the in-person service that traditional banks typically provide.
This includes things like cash deposits. Ally doesn’t really offer an answer here, aside from depositing your cash into a traditional bank and then transferring it to your online account.
Personally, I’ve never had an issue by relying on Ally’s virtual customer support, direct deposit, and virtual check deposit options. But if you do tend to get paid in cash often, then it’s a hurdle worth considering.
Checking APY
Sure, Ally offers competitive APYs on their savings and money market accounts. But their checking APY is pretty lame compared to other banks.
If you tend to keep a lot of money in your checking account, it may be worth checking other options like Crew.
No Crypto Trading
Ally’s investing accounts have a lot going for them, unless you’re looking for a place to trade crypto. While this isn’t necessarily unusual for brokerage accounts tied to banks, it may be worth considering before closing down your Robinhood or Fidelity account.
Kids can't get their name on debit cards
Ally does allow you to open a custodial checking account for your kids. But it’s kind of a bummer that their debit card accounts will have your name on them instead of theirs.
Ally Competitors
Now let’s take a look at some of Ally’s biggest competitors. Here are several other great options that offer family-friendly features.
Crew
Crew is a newer fintech company that offers high-yield hybrid checking and savings accounts. Much like Ally, Crew offers accounts that come with no minimum balance requirements or fees. While they currently only offer checking/savings accounts, Crew makes it easy to set up joint accounts for the whole family.
Kids can get their own bank accounts, complete with a debit card that has their name on it. Parents, meanwhile, can enjoy features like automated allowances, spending controls, and real-time notifications. Check out our full Crew Review here.
Acorns Early
Acorns Early is worth considering if you’re looking to set your kids or teens up with their own debit cards. It comes with gamified financial literacy lessons and plenty of great parental controls.
That said, Acorns Early isn’t the most straightforward option and can be a little more complicated than its competitors. It also requires a monthly subscription that covers all your kids’ debit accounts, an early investing account, and parental controls. Here's our Acorns Early review as well.
Greenlight
Last but not least, there’s Greenlight, which has earned a reputation as one of the top bank accounts for kids. While Greenlight isn’t free, it does offer several different subscription tiers to choose from.
Each subscription tier covers debit cards for up to 5 kids, chore tracking, automated allowances, and financial literacy games. Some of the highest tiers even come with features like driving reports, location sharing, and identity theft protection. Again, here's a full Greenlight review so you can learn more.
Ally Bank Review FAQ
As you decide whether or not you want to open an account with Ally, you might have a few more questions. Let's go over some common ones that people have when it comes to Ally.
Is Ally Bank Safe?
Rest assured that all your Ally deposits are FDIC insured. Ally also offers multi-factor authentication and cybersecurity measures to keep your account secure. If you do notice an unauthorized transaction on your account, Ally won’t hold you responsible as long as you report it within 60 days.
What is the interest rate with Ally?
At the moment, Ally savings accounts offer a 3.50% APY. That said, interest rates are always subject to change, so be sure to check out their current rates before signing up!
Can Ally accept cash deposits?
No, this is one of the downsides of an Ally Bank account. You’d have to deposit it in another bank account first and transfer it in.
Can I withdraw cash from Ally Bank?
While Ally doesn’t have physical branches, they do allow you to withdraw cash at over 75,000 fee-free ATMs. They also reimburse you up to $10/month in fees from out-of-network ATMs.
Final Thoughts on Our Ally Bank Review
Overall, I’d give Ally a 5-star review, especially when it comes to their high-yield savings accounts. My family has been using Ally for 10 years, and they’ve always been a fantastic bank to work with.
I hope this review has helped you get a better idea of what Ally has to offer. If you do decide to sign up, make sure to use this limited-time offer affiliate link to get a free $100 when you open an eligible Ally Bank account!
What do you think of this Ally Bank Review? What has been your experience?
Please let us know in the comments below.
Disclaimers: Greenlight and Marriage Kids and Money have a Tier I affiliate relationship. Compensation and additional details can be found at https://greenlight.com/affiliates-details
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