Ally Financial Review – 100 Years of History
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Fast Facts
Online-Only:
No physical branches.
Product Range:
Checking, savings, CDs, loans, investments.
Fees:
No monthly maintenance fees
High-Yield Savings:
4.00% APY
Mobile App:
User-friendly with many features.
Investment Options:
Includes IRAs, stocks, ETFs
Ally is an online bank and lender with various financial products, including checking and savings accounts, mortgages, auto loans, personal loans, and retirement and investment options.
Ally was originally founded in 1919 by General Motors to finance automotive customers. After successive changes over decades, the company rebranded in 2009 as Ally. Today, Ally is best known for its low-fee, online-only banking products. It is a member of the FDIC.
Jump To
How does Ally work?
If you’re interested in opening a bank account with Ally, there are a few steps you’ll have to take. On the bank’s homepage, you can access the drop-down menu to view their financial products, including Interest Checking and their basic checking account. When you click on Interest Checking, you’ll be redirected to the landing page for that product, where you can learn more about opening a checking account with Ally.
To open a checking account with Ally, click the Open New Account button in the bottom right corner of the page. You must be over 18 years old to be eligible for an account. You’ll also have to provide some basic information about yourself, including:
- A Social Security or Tax Identification number.
- A U.S. residential street address.
- Your legal name.
- Your birth date.
On the following screen, you can choose which type of account you’re applying for. If you’re confused about the terms, Ally provides definitions and educational resources in a helpful sidebar throughout the process.
After you choose an account type, you can customize your opening deposit and other account details based on your preferences. You also have the option to choose to receive an Ally debit card and checks, as well as to sign up for Ally’s overdraft transfer service to avoid an overdraft fee.
If you’re just setting up a checking account, you can proceed to the next step. If you want to open an additional account with Ally, such as an online savings account, adding another account to your application is easy.
You’ll then need to provide additional details, including your name, birth date, social security number, occupation, and contact information. After that, you can submit your application for review. Ally will then review your application to make sure everything looks okay. After you’re approved, you can deposit money into your new account.
Reasons To Use Stash For Investing
- Get $5 to Make Your First Investment
- Invest in Stocks and ETFs with $1 or Less
- Receive Your Paycheck up to 2 Days Faster
- No Overdraft Fees or Minimum Balances
How much does Ally cost?
Ally’s financial products are generally low-cost and have few fees. For example, Ally’s online Interest Checking account has no monthly maintenance fees, no fees for ACH transactions or domestic or international wire transfers, and no fees for cashier's checks. The fees that they do have, such as for expedited delivery or outgoing domestic wires, are clearly stated upfront.
Ally charges a few fees, and many of its financial products can earn you money over time. For example, their Interest Checking and Online Savings accounts earn interest at an impressive rate.
Ally features
Ally Bank offers various financial products, including checking and savings accounts, mortgages, auto loans, personal loans, and retirement and investment options.
Interest Checking
Ally offers a great online checking account that, unlike many traditional checking accounts, actually earns interest. Account holders earn .10% APY on under $15,000 and .25% APY on over $15,000. You can deposit checks remotely using echeck deposit and easily transfer money with Zelle and Ally Skill. No minimum deposit is required, and customers can access 55,000 Allpoint® ATMs to avoid ATM fees. You can also check your account balance and manage your account through a mobile app.
Online Savings
Ally’s savings account is another great option for consumers looking to earn interest on their savings at higher rates than many traditional banks. The account has an APY of 4.20%, charges no monthly maintenance fees, and has no minimum balance requirement. Ally also lets you customize your savings using digital “buckets” to save for particular expenses, like vacations and home improvement projects.
Money Market
Ally’s Money Market account is another great place to stash your savings, with an APY of 4.20% on all balance tiers. Like Ally’s checking and savings account, the Money Market account has no monthly maintenance fee or minimum balance requirements. Account holders can deposit checks remotely, access a network of fee-free ATMs, and earn interest on their balance.
CDs
Certificates of deposit, or CDs, are a great place to store money for medium-term expenses, like the down payment on a house or a new car. CDs come with fixed terms, during which you cannot withdraw funds. For example, if you have a CD with a 12-month term, you’ll have to wait 12 months before you can access your money. During that period, your savings will accumulate interest.
Ally offers a High Yield CD and a Raise Your Rate CD with a loyalty reward when you renew your CD. Ally also offers a No Penalty CD that doesn’t penalize you if you need to access your savings before the term limit is up.
Investing and retirement
While Ally’s CDs and checking and saving accounts may steal the show, Ally offers several ways to invest and save for retirement. Customers can open up a traditional, Roth, or rollover IRA account. Many investment options include stocks, ETFs, bonds, mutual funds, low-priced securities, and more.
Mortgage
Ally offers mortgages for customers looking to finance the purchase of a home. Borrowers can complete an easy online application and be approved in as little as three minutes. Ally offers fixed interest rates, adjustable rates, and jumbo mortgages. If you need to refinance your existing mortgage, Ally can help.
Auto loan
Ally started offering auto financing over a hundred years ago and is still going strong today. It offers financing for both personal and business vehicles. However, Ally financing options are only available from select dealerships.
Personal loan
Ally offers personal loans to fund certain specific expenses. These include loans for medical treatments and procedures, as well as loans for home repairs and renovations. If you have a significant medical expense or home improvement project on the horizon, these loans can help you to cover the cost. In both cases, loans go directly to your provider.
Who is Ally best for?
Ally is a great choice for many consumers, especially those who prefer the company’s digital-first approach.
People looking for an online bank
Ally is an online-only bank with robust digital tools to help you plan, save, and manage your finances. If you’re looking for a bank where the online experience isn’t an afterthought, Ally is a great choice.
People looking for a low-fee bank
Ally prides itself on charging its customers a few fees. The fees that it does charge are clearly stated upfront.
People looking for checking and savings accounts that earn interest
Unlike other traditional banks, Ally features checking and savings accounts that earn interest. This means it’s a great way to earn a little extra on the money you have stashed away.
Who shouldn’t use Ally?
While Ally has plenty of great features, it’s not for everyone. Here are a few consumers who may want to look elsewhere for their banking needs.
People who prefer a brick-and-mortar bank
Ally is an online-only bank, so customers cannot visit physical branches of brick-and-mortar banks. While some consumers prefer Ally’s digital-first approach, if you want to speak to a bank teller in person, Ally isn’t the best fit.
People who want to deposit cash
Unfortunately, cash cannot be deposited into an Ally bank account. This makes it unsuitable for people who frequently deal with cash, like restaurant workers who receive cash tips.
Pros and cons
Pros
- Wide range of products. Ally offers a wide range of financial products to choose from, including checking and savings accounts, retirement and investing options, and much more.
- Low fees. Ally prides itself on its low fees and transparent pricing.
- Educational resources. If you’re looking to learn more about personal finance, Ally has plenty of educational resources to avail yourself of.
Cons
- No physical bank branches. Ally is entirely online, and doesn’t operate any brick and mortar bank branches.
- Not good for cash. You can’t deposit cash to an Ally bank account, which can make it inconvenient for people who deal with cash frequently.
Reasons To Use Stash For Investing
- Get $5 to Make Your First Investment
- Invest in Stocks and ETFs with $1 or Less
- Receive Your Paycheck up to 2 Days Faster
- No Overdraft Fees or Minimum Balances
Ally vs. competitors
Ally is one of the better-known institutions for online banks, but it’s far from the only option.
Bank | Monthly maintenance fee | Savings APY |
Ally | $0 | 4.20% |
Chime | $0 | 2.00% |
Alliant Credit Union | $0 | 3.10% |
Chime
Chime is another online bank with a simple, consumer-friendly interface and low fees. Chime’s checking account doesn’t accumulate interest, but it’s easy enough to pair with a Chime savings account, which earns 2.00%. Chime also offers a secured credit card for customers looking to build credit.
Alliant Credit Union
Alliant Credit Union’s high-interest savings account has an APY of 3.10%, comparable to Ally’s. There are no monthly maintenance fees, and customers can access over 80,000 fee-free ATMs nationwide. Alliant’s online interface is slightly less slick than Ally’s, but its financial products are solid.
FAQs
What financial products does Ally offer?
Ally offers a variety of financial products, including checking and savings accounts, mortgages, auto loans, personal loans, and retirement and investment options.
Does Ally have physical bank branches?
Ally is an online-only bank with no brick and mortar branches.
Can you deposit cash to an Ally account?
It’s not possible to deposit cash to an Ally bank account.
Does Ally offer business checking accounts?
Ally currently does not offer any business checking accounts.
Reasons To Use Stash For Investing
- Get $5 to Make Your First Investment
- Invest in Stocks and ETFs with $1 or Less
- Receive Your Paycheck up to 2 Days Faster
- No Overdraft Fees or Minimum Balances
The bottom line
Ally is an online bank with various financial products, notably high-yield checking and savings accounts. Ally is a great choice for consumers who are comfortable with online-only banking and looking to manage their finances better and earn a little extra interest. Low fees, competitive rates, and customer-friendly policies are just a few perks of banking with Ally. An online-only bank isn’t for everyone, and if you’d prefer the convenience of a brick-and-mortar bank, Ally probably isn’t the best option. That said, it’s a great choice for anyone who wants a simple, low-fee bank account to manage entirely online.
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Writer
Margaret Wack covers personal finance and small business and has appeared on MoneyUnder30, The Simple Dollar and Interest.com.
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