Ally Bank Review: Checking, Savings, & CD Rates

Banking
Updated: 29th Sep 2021
Written by Justin Estes
Share this article
What is a Digital Wallet? And How Do They Work?
ACH vs. Wire Transfer: What Are the Differences?
Banking
June 21, 2020
Written by Justin Estes

Disclaimer: This post contains references to products from one or more of our advertisers. We may receive compensation (at no cost to you) when you click on links to those products. Read our Disclaimer Policy for more information.

Ally Bank is an online bank that offers consumers competitive rates, low fees, and great customer service. Whether you are on the West or East Coast, Ally Bank will provide you with an unparalleled experience.

Keep reading our Ally Bank Review to find out why millions of Americans trust and use this bank.

What Is Ally Bank?

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.

What Does Ally Bank Offer?

Ally Bank offers a myriad of financial products. Whether you are on the market for a certificate of deposit (CD), new checking account, or savings account, Ally has it all.

Additionally, Ally Bank offers various investing products, mortgages, auto loans, and personal loans. It truly is a one-stop shop, but is it worth it?

Ally Bank Pros and Cons

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 and Benefits

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.

>> More: Best Checking Accounts

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.

>> More: 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 Rates

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

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.

>> More: 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 Review
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. 

>> More: Ally Invest Review

Ally Bank Home Loans

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.

How Does Ally Bank Compare to Other Banks?

#1. Ally Bank vs. Chime Bank 

Chime is a neobank redefining the way Americans bank. With no-overdraft fees, a nifty credit building card, interest bearing savings account, and a classic checking account, Chime is more than capable of satisfying your banking needs.

It is important to note that Chime is a financial technology company, banking services are provided by The Bankcorp Bank or Stride Bank, N.A., members FDIC. However, this partnership allows them to revolutionize the financial landscape, serve customers efficiently, and focus on lowering fees across the board.

>> More: Full Chime Bank Review 

#2. CIT Bank vs. Ally Bank 

Like Ally Bank, CIT Bank is online only with no physical branches. Offering low fees and a myriad of financial products, CIT Bank is helping Americans achieve their financial goals. 

CIT Bank offers competitive CD rates, multiple checking accounts, various savings accounts, mortgages, and money market accounts.

>> More: Full CIT Bank Review

#3. Ally Bank vs. Axos Bank 

Founded in 2000, Axos Bank was one of the first banks to pivot online. Offering consumers checking accounts, savings accounts, CDs, money market accounts, and loans, Axos is one of the largest online banks in the world. 

Like Ally Bank, Axos keeps it fees low and truly focuses on their customers. If you succeed, they succeed and this ethos is noticeable. 

>> More: Full Axos Bank Review

Ally Bank FAQs

Is Ally a Safe Bank?

Ally Bank is a safe place to park your money. They employ bank-level security (256 bit encryption), and are FDIC insured. Moreover, Ally Bank has not experienced a data breach or cybersecurity incident.

Which is Better Chime or Ally?

While both are great banks, we believe Chime Bank is better. If you own a smart phone and enjoy monitoring your accounts from your mobile device, then Chime makes sense. Currently, Chime offers a credit building credit card, savings account, and checking account that are easy-to-use and monitor.

Can I Deposit Cash to Ally Bank?

No. Ally Bank does not support cash deposits. However here is what you can do:

  • Remote check deposit with Ally eCheck DepositSM
  • Online transfers and direct deposit
  • Wire transfers and mail

Does Ally Bank Give You a Debit Card?

Yes, Ally Bank gives you a debit card. However, if you have both a checking account and a money market account, then you will need a debit card for each account. Ally Bank’s customer service will help you if you have any questions. 

>> More: Best Online Banks

Bottom Line: Ally Bank Review

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.

Justin Estes
Justin Estes
Justin is an experienced personal finance writer, blogger, and author. His background in accounting and finance led to a passion for helping people make the most of their money and matching them with financial products that enhance their lifestyle. When he's not working, he enjoys hiking, playing guitar, and drinking coffee.