Ally Bank Review 2024: Features, Pros, and Cons (2024)

Personal Finance Banking Savings

Written by Sophia Acevedo; edited by Laura Grace Tarpley; reviewed by Evelyn He

Updated

  • Overall Rating
  • Pros and Cons
  • About Ally Bank
  • FAQs
  • Personal Bank Accounts
  • Mortgages
  • Investing
  • How Ally Bank Compares

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Ally Bank: Overall Rating

FeaturePersonal Finance Insider rating (out of 5)
Banking4.25 to 4.75
Mortgages3.63
Investment platform4.48
Trustworthiness4.5
Total4

Ally Bank: Pros and Cons

ProsCons
  • High savings, CD, and money market rates

  • Bank accounts with no monthly fees and $0 minimum opening deposits

  • No application or documentation fees for vehicle refinancing

  • No origination, application, underwriting, or processing fees for mortgages

  • No account minimums or commissions for trading for brokerage accounts

  • Can't deposit cash
  • Limited home loan options (No FHA, VA, or USDA loans)
  • No cryptocurrency options for brokerage account

About Ally Bank

Ally offers a wide range of products. In addition to the offerings listed above, Ally also has credit cards and loans for medical treatments.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.

Your money is FDIC insuredfor up to $250,000, or $500,000 if you have a joint account.

Ally Bank Online and Mobile Banking Experience

Ally is an online-only bank, so it doesn't have any physical branches. If you're considering Ally as a banking option, you must be comfortable managing your bank account primarily through online and mobile banking.

The Ally mobile app includes standard banking features like mobile check deposits, an ATM locator, and debit and credit card usage controls.

If you have an Ally Savings Account or Ally Spending Account you can also have access to the bank's buckets feature. With the Ally Savings Account, you can save money for individual savings goals, like an upcoming vacation or occasion. Meanwhile, the Ally Spending Account allows you to separate your primary expenses with spending buckets.

The Ally mobile app has received 4.7 out of 5 stars in the Apple store based on 72,900 ratings. In the Google Play store it's rated 2.7 out of 5 stars based on 27,100 reviews.

Ally Bank Customer Service and Support

Ally offers customer support by phone, live chat, or email. If you have questions about banking, investing, or credit cards, representatives are available 24/7 by phone.

For questions about other services, the hours may vary. Generally, you can talk to a representative about auto loans, home loans, or personal loans beyond traditional hours Monday through Friday and select hours on Saturday.

Is Ally Bank Trustworthy?

Ally received anA rating from the Better Business Bureau. The highest possible grade is an A+ but Ally has an A because it has a few unresolved complaints on the BBB website.

The BBB looks at how a company responds to customer complaints. It also checks whether a business is honest in its advertising and transparent about how it conducts business.

Ally doesn't have any recent public scandals.

Ally Bank FAQs

Is Ally Bank safe to use for online banking?

Yes, Ally is safe to use for online banking. It's an FDIC-insured financial institution, so up to $250,000 per depositor per ownership category is secure in a bank account.

Does Ally Bank offer any physical branches?

No. Ally is an online-only bank. It doesn't have physical branches.

Can I deposit cash with Ally Bank?

No. You cannot deposit cash with Ally Bank. You can set up direct deposits or make mobile check deposits through the mobile app.

Ally Bank Personal Banking Review

Ally Savings Account

Ally Savings Account

Start saving

Ally Bank, FDIC Insured

Insider’s Rating

4.75/5

Perks

Earn 4.20% Annual Percentage Yield with a $0 minimum account opening requirement

Fees

no monthly service fee

Annual Percentage Yield (APY)

4.20%

Minimum Opening Deposit

$0

Pros

  • High APY
  • No minimum opening deposit
  • No monthly service fees
  • Savings buckets help you save for different goals
  • Surprise savings transfers help you save extra money from your checking account

Cons

  • No physical branch locations
  • No way to deposit cash

Insider’s Take

The Ally High Yield Savings Account is a great option for anyone who wants savings tools to help save for specific financial goals, or prioritizes an account that doesn't charge standard bank fees.

Ally Savings Account review External link Arrow An arrow icon, indicating this redirects the user."

Product Details

  • Create separate savings buckets in a savings account
  • Link to your Ally checking account and enroll in surprise savings transfers to have extra money transferred to savings three times per week
  • Interest compounded daily, paid monthly
  • FDIC insured

Ally is a good option if you're looking for a savings account that doesn't require a minimum opening deposit.

Ally Bank savings account interest rates are also better than traditional savings accounts at brick-and-mortar banks.

See Business Insider's Ally Savings Account Review.

Ally Spending Account

Ally Spending Account

Start banking

Ally Bank, Member FDIC

Insider’s Rating

4.75/5

Fees

no monthly service fee

Annual Percentage Yield (APY)

0.10% to 0.25%

Minimum Opening Deposit

$0

Bonus

N/A

Pros

  • Spending buckets to manage expenses
  • Competitive APY
  • No initial deposit
  • No minimum account balance
  • No monthly service charge
  • Connect your account with Zelle
  • Easy-to-use mobile app
  • Early direct deposit
  • Reimburses up to $10/month in out-of-network ATM fees
  • Online bill pay
  • 24/7 customer service
  • No overdraft fees
  • Overdraft protection

Cons

  • No physical branch locations
  • No way to deposit cash

Ally Spending Account review External link Arrow An arrow icon, indicating this redirects the user."

Product Details

  • You can deposit checks right from your smartphone
  • Manage expenses by creating spending buckets
  • Ally reimburse's up to $10 per statement cycle for fees charged at other ATMs nationwide
  • Transfer money with your voice through Ally Skill™ for Amazon Alexa
  • Interest compounded daily, paid monthly
  • FDIC insured

The Ally Spending Account is a solid low-fee option. 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.

Another standout perk is that you can use spending buckets to help manage your spending for different categories, like groceries or rent.

See Business Insider's Ally Spending Account Review.

Ally High Yield CD

Ally High Yield CD

Start saving

Ally Bank, Member FDIC

Insider’s Rating

4.5/5

Annual Percentage Yield (APY)

3.00% to 4.85%

Minimum Opening Deposit

$0

Pros

  • Competitive APY
  • No required opening deposit
  • Low early withdrawal penalties

Cons

  • No terms over 5 years
  • No physical branch locations

Insider’s Take

Ally is one of thebest online banks and an excellent choice for CDs. Its CD stands out from competitors because they have $0 opening deposit requirements, standard-to-low early withdrawal penalties, and great CD rates.

Ally High Yield CD review External link Arrow An arrow icon, indicating this redirects the user."

Product Details

  • Terms ranging from 3 months to 5 years
  • Early withdrawal penalty of 60 days interest penalty term of 24 months or less; 90 days interest for term of 25 to 36 months; 120 days interest for terms of 37 to 48 months; 150 days interest for terms of 49 months or more
  • Interest compounded daily, paid monthly
  • FDIC insured

Ally Raise Your Rate CD

Ally Raise Your Rate CD

Start saving

Ally Bank, Member FDIC

Insider’s Rating

4.75/5

Annual Percentage Yield (APY)

3.75%

Minimum Opening Deposit

$0

Bonus

None

Pros

  • Competitive APY
  • Increase APY before term ends
  • Low early withdrawal penalties
  • No minimum deposit

Cons

  • No physical locations
  • May find higher APY elsewhere

Insider’s Take

Ally is one of thebest online banks and an excellent choice for CDs. Its CD stands out from competitors because they have Ally High Yield CD - Minimum Deposit opening deposit requirements, standard-to-low early withdrawal penalties, and great CD rates.

Raise Your Rate CD review External link Arrow An arrow icon, indicating this redirects the user."

Product Details

  • Choose from a 2-year or 4-year term
  • If Ally rates go up during your term, you may increase your rate once for a 2-year term, and twice for a 4-year term
  • Early withdrawal penalties: 60 days interest for a 2-year term, 120 days interest for a 4-year term
  • Interest compounded daily, paid monthly
  • FDIC insured

Ally No Penalty CD

Ally No Penalty CD

Start saving

Ally Bank, Member FDIC

Insider’s Rating

4.75/5

Annual Percentage Yield (APY)

4.00%

Minimum Opening Deposit

$0

Bonus

None

Pros

  • Competitive APY
  • No minimum deposit

Cons

  • No physical locations
  • Only term option is 11 months

Insider’s Take

Ally is one of thebest online banks and an excellent choice for CDs. Its CD stands out from competitors because they have Ally High Yield CD - Minimum Deposit opening deposit requirements, standard-to-low early withdrawal penalties, and great CD rates.

Ally No Penalty CD review External link Arrow An arrow icon, indicating this redirects the user."

Product Details

  • 11-month CD term
  • No early withdrawal penalty for taking out funds before your CD matures
  • Interest compounded daily, paid monthly
  • FDIC insured

Ally pays solid rates on its CDs, and it's one of the few banks that doesn't require a minimum opening deposit.

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 Ally 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 Ally No Penalty CD.

See Business Insider's Ally CD Review.

Ally Money Market Account

Ally Money Market Account

Start banking

Ally Bank, Member FDIC

Insider’s Rating

4.25/5

Fees

no monthly service fee

Annual Percentage Yield (APY)

4.20%

Minimum Opening Deposit

$0

Pros

  • No opening deposit or minimum account balance
  • No monthly service fee
  • Access to a debit card
  • Access to paper checks
  • Out-of-network ATM reimbursem*nts of up to $10 per month
  • 24/7 customer service
  • Easy-to-use mobile app
  • Link to other Ally bank accounts

Cons

  • Not the highest money market account APY
  • No physical branch locations
  • Limits transactions to 10 per statement cycle across both Ally Savings and Ally Money Market Accounts

Ally Money Market Account review External link Arrow An arrow icon, indicating this redirects the user."

Product Details

  • Access to checks and a debit card
  • Interest compounded daily, paid monthly
  • FDIC insured

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.

See Business Insider's Ally Money Market Account Review.

Ally Bank Mortgages Review

Ally Home Mortgage

Compare rates

On Bankrate's website

Insider’s Rating

3.86/5

Recommended Credit

620

Minimum Down Payment

3%

Types of Loans Offered

Conforming, jumbo, One Day Mortgage

Pros

  • Smooth online application process
  • $5,000 homebuyer grant available
  • Zero origination, application, underwriting, or processing fees
  • Easily see personalized rates
  • Large jumbo loan amounts
  • Lock in a rate and receive conditional approval within 24 hours

Cons

  • Only offers conforming and jumbo mortgages
  • Doesn't accept alternative credit data
  • Homebuyer grant only available in Charlotte, Detroit, and Philadelphia metro areas

Insider’s Take

Ally has a very limited range of mortgage options to choose from, but it also offers features that rival some of the best mortgage lenders out there, including a rate customization tool and no lender fees. Plus, it ranks high in customer satisfaction and offers large jumbo loan amounts.

Ally Home review External link Arrow An arrow icon, indicating this redirects the user."

Product Details

  • Online-only mortgage lender
  • Available in all 50 states and Washington, DC
  • Does not accept alternative credit data, such as utility bills, if you have a low/no credit score
  • Minimum credit score and down payment displayed are for conforming mortgages

Ally only has conforming and jumbo mortgages. It might be worth considering if you have a good credit score. However, if your credit score is below 620 or you're searching for a different type of home loan, you'll want to consider other mortgage lenders.

See Business Insider's Ally Mortgage Review>>

Ally Bank Invest Review

Ally Invest

Start investing

On Ally's website

Insider’s Rating

4.48/5

Perks

Ally's self-directed brokerage accounts also offer commission-free trading on stocks, ETFs, and options.

Account Minimum

$0 ($100 for Robo Portfolios; $100,000 for Ally Invest Personal Advice)

Fees

0% (up to 0.85% for Ally Invest Personal Advice; bonds, mutual funds, and certain stocks have fees)

Pros

  • No account minimums or commissions for trading
  • Automated portfolios free of advisory or management fees; Ally Invest Personal Advice available
  • Options contracts only cost $0.50 per contract
  • Bank accounts, mortgage refinancing, car loans, and personal loans available through Ally Bank

Cons

  • Thousands of mutual funds but no no-transaction-fee mutual funds
  • No cryptocurrencies

Insider’s Take

Ally Invest is best for active traders looking for $0 minimum deposits, commission-free investing, easy-to-use trading tools, and 24/7 market access. The brokerage is also great for passive investors in search of automated advice.

Ally Invest review External link Arrow An arrow icon, indicating this redirects the user."

Product Details

  • App store rating: 4.7 iOS/ 3.9 Android
  • Consider it if: You want easy-to-use apps paired with excellent investing, checking, and savings accounts.

Ally is featured in our guide for the best online brokerages for beginners as the best bank account and brokerage combo. Ally Invest stands out because it's a low-fee investment platform. It has commission-free stock and ETF trades. It also has a robot portfolio with zero advisory fees and a $100 account minimum balance.

See Business Insider's Ally Invest Review.

How Ally Bank Compares

We compared Ally to two other online banks with competitive savings and CD rates.

Ally Bank vs. Marcus

Ally and Marcus are both online-only financial institutions. If you are more comfortable banking at a place that has branches, you'll want to consider other options.

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.

Marcus has an investing platform, but it doesn't offer mortgages.

Ally Bank vs. Capital One 360

Although Capital One Bank is considered an online bank, it does have physical branches in six 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.

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.

If you'd like to get home loans and a brokerage account at the same place where you have a bank account, Ally will likely be a better choice. In 2017, Capital One decided to discontinue its home loan products. Capital One also no longer offers investment advisory services.

Is Ally Bank Right For You?

Ally is a great choice if you want to save and invest in one place. Ally's banking and investment accounts have low minimum opening requirements and minimal fees. Its savings, money market, and CD accounts also notably pay better rates than brick-and-mortar banks.

You'll want to consider other options if you aren't comfortable with an online-only banking experience. Ally also doesn't have as many mortgage and loan types as other financial institutions.

Why You Should Trust Us: How We Reviewed Ally Bank

For our Ally Bank review, we rated bank products and services using our editorial standards. At Business Insider, we rate products on a scale from zero to five stars. We also compare and contrast the features and fine print of various products to help determine if the account may be right for you.

For example, we'll look at early withdrawal penalties and CD variety specifically for CDs. Meanwhile, for checking accounts, we'll factor in the ATM network size and fees, as well as its overdraft protection options.

We'll consider factors like investment selection for investment for a brokerage account, and loan types for mortgages. In general, we also look at customer service and ethics.

Sophia Acevedo

Banking Editor

Sophia Acevedo is a banking editor at Business Insider. She has spent three years as a personal finance journalist and is an expert across numerous banking topics.ExperienceSophia leads Personal Finance Insider's banking coverage, including reviews, guides, reference articles, and news. She edits and updates articles about banks, checking and savings accounts, CD rates, and budgeting and saving. She is highly knowledgeable about long-term trends in rates and offers at banks across the U.S.Before joining Business Insider, Sophia worked as a journalist at her college newspaper and was a freelance writer. She has spent seven years writing and editing as a journalist.Sophia was nominated for an Axel Springer Award for Change in 2023 for her coverage of ABLE accounts, tax-free savings accounts for people with disabilities. She was also a winner of a 2018 California Journalism Awards Campus Contest for her photography.She loves helping people find the best solutions for their unique needs and hopes that more people will find the tools to solve their financial problems. She’s inspired by stories of everyday people adapting to their financial circ*mstances and overcoming their fears around money.ExpertiseSophia's expertise includes:

  • Bank accounts
  • Savings and CD rate trends
  • Budgeting
  • Saving
  • How banks operate

EducationSophia graduated from California State University Fullerton with a degree in journalism and a minor in political science.She is an avid reader across a variety of genres, and she started running in 2021. She ran in the 2024 Los Angeles Marathon.

Evelyn He

Compliance and Operations Associate

Evelyn He is a Compliance and Operations Associate on the Personal Finance team to ensure content accuracy and editorial independence so readers get up-to-date and objective financial advice.The compliance team's mission is to provide readers with fact-checked and current stories so they can make informed financial decisions. The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.

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Ally Bank Review 2024: Features, Pros, and Cons (11)

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