Money Magazine recently named Ally Bank as their “best online bank” for consumers, citing excellent customer service, low fees, and usability of their platform. You can read more about our review of Ally Bank below. If you’re in the market for a top online bank, give Ally Bank a try.
Who enjoys making 0.15% on your savings account? Raise your hand…..
Didn’t think so.
Interest rates have been low for quite some time (too long for many), and finding the highest interest rate for your savings accounts is a must.
One viable option is the online bank Ally. If you’re looking for a competitive rate online, then you might want to check Ally out.
Here’s a review of Ally Bank and why they might be the best online bank for you.
Quick History and Terms
Ally Bank is a product of what used to be GMAC Bank. Whenever GM went through its PR nightmare, GMAC made the smart decision to rebrand and hence Ally was born.
ALLY bank is offering some of the highest-yield accounts available that are also backed by the FDIC. Being backed by the FDIC simply insures up to $250,000 of your money by the Federal Government in case of an emergency.
You can receive much more than $250,000 worth of coverage by opening an account with a death benefit to your spouse or by opening an account for your child. With these extra accounts added, you can achieve a total coverage of around 1.5 million, depending on your family structure.
Opening Your Account With Ally
Opening an ALLY bank account is similar in process to any typical bank, except for the precautions they will take because of no actual face-to-face contact. The one major difference is the use of your FICO score, other banks will check your FICO score as well, but ALLY could possibly deny you based on your FICO score, whereas other banks may take more variables into consideration.
After opening your initial account, whether it is savings or checking, it’s relatively simple to open another account simply using your login name and password.
Ally Bank Alternatives
Ally is only one of several online banks. The following are some of the most competitive online savings accounts when it comes to interest rates.
Investment Tools Available
Ally Bank offers a variety of options for your money to be invested in:
1. The First Option Is an Online Savings Account: The savings account has no minimum deposit as well as no minimum balance, which appeals to most people because there will be no hidden fees on your statement. The savings account also is amongst the highest yields, but you are only able to make six withdrawals without penalty (penalty is $10) because of federal regulations. So, this is no different than any other online bank.
2. The Second Option Is a Money Market Account: The money market account is very similar to a savings account except for the fact that you may receive a check card that is linked to the account. You will receive a slightly lower APY but have much more availability to your funds. Your check card may be used at any ATM, and ALLY will pick up the fee that the bank charges for the withdrawal. With the money market account, you’re also limited to six withdrawals per period (these six withdrawals refer to online electronic funds transfer and telephone transfer, not to your ATM withdrawals).
3. ALLY Also Offers an Interest Checking Account, Which Is Very Similar to the Money Market Account but With Totally Unlimited Withdrawals: On all the above-mentioned accounts, deposits do not count against your six transactions.
4. The Final Option That ALLY Bank Offers Is a Certificate of Deposits or CDs. They have high-yield CDs that are very competitive against the market, as well as no-fee CDs. The high-yield CD has no minimum deposit and gives you the option to automatically renew, or request for your interest to be received upon maturity as income. The no-fee CD gives you the option to withdraw the full amount, principal, and interest at any point in time before the maturity date with no penalty. This no-fee CD will have a slightly lower APY but will keep your investment more liquid, dependent upon your immediate needs, without penalty.
Ally Bank Investment Options Overview
|Online Savings Account||• No Minimum Deposit or Balance |
• High Yields With No Hidden Fees
• 6 Penalty-Free Withdrawals per Statement Period
|Money Market Account||• Similar to Savings, With a Check Card|
• Slightly Lower APY, but More Accessible Funds
• Ally Covers ATM Fees
• 6 Withdrawals per Period
|Interest Checking Account||• Unlimited Withdrawals|
• Deposits Don’t Count Toward the Transaction Limit
• Similar to Money Market Features
|Certificate of Deposits (CDs)||• High-Yield Competitive CDs|
• No-Fee, No Minimum Deposit Option
• Auto-Renewal or Interest as Income
• Penalty-Free Withdrawals With a Slightly Lower APY
Ally Bank Review Bottom Line
Overall, ALLY bank is a convenient option that offers competitive rates with no minimum balance, as well as being backed by the FDIC, so you know that your money is safe. Beware that they will measure you based on your FICO score when opening an account, as well as your initial deposit may take slightly longer than a local bank because of the processing time needed.
Most likely, you will also be sending out-of-state checks to ALLY, so do not be surprised if it does take a couple of days longer for your check to show up on your statement. Their customer service is easily accessible with 24-hour access online as well as through telephone. I do not personally have an ALLY account, but I called their helpline and was pleased to have no wait time associated with all of my attempts.
Have you opened an account with ALLY Bank? If so, please share your experience.
How We Review Banking or Financial Institutions:
Good Financial Cents undertakes a comprehensive review of banking and financial institutions, analyzing service offerings, customer satisfaction, and financial stability. Our intention is to provide readers with a balanced overview, aiding them in their financial journey. We consistently emphasize editorial transparency.
We source data from these institutions, reviewing account offerings and other key services. This data, when combined with our in-depth research, forms the foundation of our evaluation. Institutions are subsequently rated on a range of criteria, resulting in a star rating from one to five.
Product Name: Ally Bank Product Description: Ally Bank is a renowned online-only bank known for its consumer-centric approach, offering a range of financial products from savings accounts to loans. Prioritizing user-friendly interfaces and competitive interest rates, it has steadily grown as a preferred choice for digitally-savvy customers seeking convenience and performance in banking. Summary Emerging from its roots as GMAC Bank, Ally Bank rebranded and reshaped its image, now standing as one of the leading online banks in the industry. With no physical branches, Ally offers customers the convenience of managing their finances anytime, anywhere, complemented by a suite of products including high-yield savings accounts, CDs, and various loan options. Their digital platform is crafted to ensure an intuitive user experience, and their commitment to transparent pricing has garnered them a loyal customer base. Pros Cons
Ally Bank Review
Product Name: Ally Bank
Product Description: Ally Bank is a renowned online-only bank known for its consumer-centric approach, offering a range of financial products from savings accounts to loans. Prioritizing user-friendly interfaces and competitive interest rates, it has steadily grown as a preferred choice for digitally-savvy customers seeking convenience and performance in banking.
Emerging from its roots as GMAC Bank, Ally Bank rebranded and reshaped its image, now standing as one of the leading online banks in the industry. With no physical branches, Ally offers customers the convenience of managing their finances anytime, anywhere, complemented by a suite of products including high-yield savings accounts, CDs, and various loan options. Their digital platform is crafted to ensure an intuitive user experience, and their commitment to transparent pricing has garnered them a loyal customer base.