Ally Bank Review: The Details You Need to Know

Banking
June 21, 2020
Written by Drew Cheneler
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Ally Bank Review: The Details You Need to Know
10 Best Checking Accounts with No Overdraft Fees (for 2020)
Banking
June 21, 2020
Written by Drew Cheneler
Disclaimer: This Post contains affiliate links, which means if you click and buy, we get paid. However, this does not influence the integrity of our review. Our opinions are our own. Read our Disclaimer Policy for more information.

In this Ally Bank review, we will cover Ally bank in its entirety. We will cover its low fee structure, financial products, and everything in between. Backed by hours of research, customer testimonial, and user testing, we unveil the hidden details of Ally Bank.

Ally Bank Overview

Ally Bank is an online only bank that offers low fees, great CDs, an interest bearing checking account, select loans, and a phenomenal investing experience. Above all, Ally Bank provides user’s with standout customer service and an easy-to-use platform allowing you to bank from anywhere at anytime.

Pros:

  • Some of the Lowest Fees Around
  • Over 43,000+ ATMs
  • Diverse CD Selection
  • Top Notch Retirement Accounts
  • No Monthly Fees
  • No Minimum Account Opening Balance

Cons:

  • No Physical Branches
  • Select International Fees
  • $10 Saving Account Transfer Fee. Only Applies after your sixth transfer in one month.

Ally Bank Features:

This fee-free bank offers its users a myriad of benefits.

Interest Checking Account

This online only financial bank offers a low fee interest bearing checking account. The annual percentage varies depending on how large your account balance is:

  • 0.10% APY if your account balance is less than $15,000
  • 0.50% APY if your account balance exceeds $15,000

If you are looking for an introductory checking account, then their 0.10% APY warrants some serious consideration. Though Ally Bank does not accept cash deposits, you can enroll in their eChecking program which allows you to deposit your checks remotely with a simple photo.

Ally bank will also reimburse you up to $10 per statement. As usual, they make it easy for you to transfer your money. More importantly, they are FDIC – insured, so your money is protected.

Looking to Compare Options? Review our Best Checking Accounts.

Ally Bank online savings account

Ally’s online saving account boasts a 1.60% APY (as of February 17th, 2020), which is 15x the National Average. With no monthly fees and a $0 minimum balance requirement, this saving account is well suited to meet your financial needs. Better yet, Ally’s online saving account compounds interest daily, so you end up getting a better bang for your buck.

Want to Review More? Find the Best High Yield Saving Account.

Ally Bank CD Rates

Ally offers three different types of CDs: High Yield CD, Raise Your Rate CD, & No Penalty CD. Each CD is designed to help you grow your money over-time, avoid fees, and earn a solid return on investment.

Ally High Yield CD

CD lengthAPY
3 - Month0.75%
6 - Month1.0%
9 - Month1.25%
1 - Year2.0%
5 - Year2.15%

With no monthly maintenance fee, Ally Bank provides a wide variety of High Yield CDs. Their 5 year CD boasts the highest APY, which is currently sitting at a cool 2.15%. Ally is currently offering a 0.05% loyalty reward when you renew your CD at the end of the term.

Ally Raise Your Rate CD Review

CD LengthAPY
2 - Year2.05%
4 - Year2.05%
With a 2.05% APY and terms of either two or four years, Ally’s raise your rate CD is available for both your Roth IRA and investment account. For both CD terms, you are allowed to raise your rate once if Ally’s rate increases. This feature allows you to maximize your return on investment, and ensures you get the best rate throughout the duration of your agreed upon term.

Ally Bank No Penalty CD (11 Month Term)

APY
Less than $5,0001.65%
$5,0001.85%
$25,0001.90%

Ally’s no penalty CD is only available for a term of 11 months. However, this CD is ideal if you need the capital available at anytime, because Ally will not penalize you for taking out your money after six days of funding your CD.

Want to See how Ally Stacks up Against Others? View the Best CD Rates.

Ally invest (Self-Directed trading & managed Portfolio)

Ally bank provides users with a robust investing experience. As a member, you can either partake in self-directed trading or enjoy a managed portfolio.

With their self-directed trading, you are able to invest in stocks, mutual funds, ETFs, bonds, and options. The best part is that Ally is a commission free broker, so you will not encounter any hidden fees. If you like to conduct market research, and make all investment decisions yourself, then Ally’s self-directed trading option is your best bet. They designed their platform for the do-it yourself investor.

Ally Bank offers its customer a robust investing experience.

Source: Ally.com

Fret not, if you prefer to remain hands-off with your investing, Ally has you covered with their managed portfolio option. With just a $100, you can let Ally Invest handle your portfolio. Backed by a seasoned team of professionals, they invest in socially responsible businesses, diversify your portfolio, generate a solid return on investment, and ensure it is tax optimized. Gone are the days where an online brokerage charges you endless fees for managing your portfolio. Ally invest will not charge you advisory, re-balancing, or annual fees. Again, this option is best for passive investors. 

Ally Bank Home Loans: The Difference that Matters

Thinking about buying a new home? Ally Bank provides a diverse selection of carefully crafted home loans all designed to help you buy the home you deserve.

This online bank offers three different types of loans: Fixed – Rate, Adjustable Rate, & Jumbo Loans.

Fixed Rate:

A simple flat rate that will not change over the entirety of the loan. This option is best if you are looking for a consistent monthly payment that aligns with your financial budget and needs.

Adjustable Rate:

Plan on refinancing your loan in 5, 7, or 10 years? Ally’s adjustable rate loan allows you to do just that in no time.

Jumbo Loans:

Do you have your eyes on a home that needs a little extra love? A jumbo loan is just what it sounds like, a larger loan that allows you to buy that dream home at a competitive rate.

Buying a home is one of the biggest financial decision you may ever make, and Ally Bank does not take this responsibility lightly. To assist you, they created a monthly payment calculator and an affordability calculator to help you crunch the numbers and narrow down on the right loan. As an Ally member, they will even pay you $500 to help offset the closing cost. As you can see, Ally rewards loyalty and values each and everyone of their members.

Ally Vehicle Financing

Whether you are on the market to buy or lease a vehicle, Ally provides you the opportunity to do both. As one of the largest Auto financiers in the country, they are more than prepared to help you finance the perfect car.

Are you a small business owner or knee deep into creating the next hot start up? Ally also offers vehicle financing opportunities for businesses and corporations.

Ally Bank Review: Is Ally Bank the right choice?

If you are looking for a low-fee online bank, then look no further. Though there are no physical branches, Ally Bank allows you to bank at the palm of your hands with their user friendly mobile application and website. Not to mention, Ally provides a wide selection of online tools and educational resources to help you make smart finance decisions. Above all, they offer 24/7 customer service, so your burning financial questions can be answered at any time.

Ally Bank is best for individuals who prefer to bank online, enjoy low fees, and want access to home loans, competitive CDs, a quick and easy checking account, or if you are on the market to simplify your investing strategy.

Drew Cheneler
Drew Cheneler
Drew is a recognized Credit, Small Business, and Personal Finance Expert. He has been quoted in CNBC, The Huffington Post, Business.com, Moneyunder30, and more. He is known for breaking down complex personal finance topics into action-oriented advice, so you can make the most of your hard-earned money.