Ally Bank Spending Account
One of the advantages of not having any physical branches is that the bank can pass along those savings to customers in the form of lower fees. That’s the case with the Ally Bank Spending Account, the only checking product offered by this bank.
Customers pay $0 in monthly fees, and there’s no minimum deposit to open the account. Ally also doesn’t charge overdraft fees.
Customers get complimentary standard checks, a debit card and bill-pay service. Account holders who use an Allpoint ATM never face any charges. Go outside of that ATM network of 43,000+ ATMs and Ally will reimburse you up to $10 per statement cycle.
Because there are no physical branches, customers must rely on technology to fund their accounts. You can set up direct deposit of your paychecks, and Ally’s eCheck Deposit feature lets you deposit paper checks using your cellphone camera. Ally also supports Zelle, the peer-to-peer payment platform that enables you to send or receive money from friends and family.
If you’re more old-fashioned, you can mail in deposits using postage-paid envelopes.
Ally Bank pays 0.10% annual percentage yield (APY) on checking accounts with less than a $15,000 minimum daily balance, and 0.25% APY for accounts with minimum daily balances of $15,000 or more. The latter is higher than some of its rivals, though not as high as the best checking accounts.
The Capital One 360 Checking Account, for example, pays an APY of 0.10% on all balance tiers, while the Wells Fargo Premier Checking pays an APY of 0.25% to 0.50% APY depending on balance.
Ally Bank Savings Account
The best online savings accounts tend to offer higher rates on savings deposits and Ally Bank is no exception. You won’t get rich off the APY, but you’ll generally get a better rate than you would at a traditional bank.
Ally Bank pays an APY of 4.35% on its savings account, which is more than 10 times the national average. Interest compounds daily. Note: The APY may remain the same for all balance tiers or change based on your account’s daily balance.
The account has a $0 monthly maintenance fee and no minimum balance requirement. And due to federal regulation changes, Ally doesn’t currently limit the number of transactions you can make from the account. In the past, you were limited to six transactions per statement cycle. After that, Ally typically charged $10 for every additional transaction, but, due to Covid-19, the bank is temporarily refunding that fee. Customers can make deposits via smartphone or by mail.
Ally Bank Money Market Account
In addition to a savings account, Ally Bank also offers a money market account, which pays an APY of 4.40% on all balance tiers. That makes it one of the best money market accounts, though the rate is not the highest available.
Customers pay no monthly fees with this account and there are no minimum balance requirements. You can make unlimited deposits and ATM withdrawals for free.
Ally Bank Certificates of Deposit
When it comes to certificates of deposits (CDs), Ally Bank offers varying terms and types to meet savers’ needs. Its traditional High-Yield CDs range from three months to five years. There’s no minimum deposit requirement to open a CD.
Here’s a look at Ally Bank’s CD rates:
| CD Term | APY |
|---|---|
3 Months | 3.00% |
6 Months | 5.00% |
9 Months | 5.05% |
12 Months | 5.25% |
18 Months | 5.15% |
3 Years | 4.25% |
5 Years | 4.10% |
Ally Bank also offers its Raise Your Rate CD with two- and four-year terms. You can increase your rate once during the two-year term or twice during the four-year term. The APY on both terms is 4.00%.
Both the high-yield CDs and raise-your-rate CDs have early withdrawal penalties that vary by term. For terms of 24 months or less, the bank charges 60 days of interest. The charge moves up to 90 days of interest for terms between 25 and 36 months. For terms between 37 and 48 months, the fee is 120 days of interest. And for terms of 49 months or longer, the charge is 150 days of interest.
For savers looking for liquidity, Ally Bank offers its No Penalty CD. With this product, customers can withdraw money without having to face any penalties. You can start drawing down your money on the seventh day following the funding of the CD. This CD is currently available in an 11-month term and pays APY, which is one of the best CD rates on no-penalty CDs.
Ally Bank also offers both high-yield and raise-your-rate IRA CDs, with APYs that are the same as for the regular CDs.
