Ally review: Earn high interest rates and contact live customer support 24/7

Ally review: Earn high interest rates and contact live customer support 24/7



Alyssa Powell/Business Insider


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  • Ally (Member FDIC) pays competitive interest rates on savings and CDs, but you can find better money market account rates at other online banks.
  • The Ally High Yield Savings Account lets you create separate savings buckets, like “Emergency Savings” or “House Fund.”
  • Banking with Ally is affordable, with overdraft protection, out-of-network ATM reimbursements, no monthly fees, and low early withdrawal penalties for CDs.
  • Ally offers live customer support 24/7, both over the phone and via online chat.
  • See Business Insider’s picks for the best high-yield savings accounts »
You might like Ally if you… You might not like Ally if you…
  • Are comfortable banking digitally
  • Want to earn competitive rates on savings and CDs
  • Are looking for a bank that doesn’t charge monthly fees
  • Don’t have much money to open an account
  • Want a savings account that makes it easy to save for separate goals
  • Aren’t comfortable banking digitally
  • Need to deposit cash
  • Are looking for the highest interest rate on a money market account

The bottom line: Ally’s strongest products are its high-yield savings account and CDs, but you can find higher money market account rates elsewhere.

  • Details
  • Pros & Cons

    • Create separate savings buckets in a savings account
    • Interest compounded daily, paid monthly
    • FDIC insured
    Pros
    • Competitive APY
    • 24/7 customer service
    • Easy to save for different goals
    • No required initial deposit or minimum account balance
    • No monthly service fee
    • Easy-to-use mobile app
    • Link to an Ally checking account
    • Reimburses up to $10 in out-of-network ATM fees per month
    Cons
    • No physical branch locations
    • $10 fee if you exceed 6 transactions per month (paused during COVID-19)


    Read Our Review
    Read Our ReviewA looong arrow, pointing right

    Ally High Yield Savings pays one of the top interest rates in the industry. Ally also doesn’t require a minimum opening deposit, and it doesn’t charge monthly service fees.

    Ally makes it easy to save for specific goals. Assign each account a nickname, like “Emergency Fund” or “Travel Account” to track your progress and stay motivated. You may decide to open a separate account for each goal, but Ally has a bucket feature that allows you save for multiple goals in one account.

  • Details
  • Pros & Cons

    • You can deposit checks right from your smartphone
    • Ally reimburse’s up to $10 per statement cycle for fees charged at other ATMs nationwide
    • Transfer money with your voice through Ally Skill™ for Amazon Alexa
    • Interest compounded daily, paid monthly
    • FDIC insured
    Pros
    • Competitive APY
    • No initial deposit
    • No minimum account balance
    • No monthly service charge
    • Connect your account with Zelle
    • Easy-to-use mobile app
    • Reimburses up to $10/month in out-of-network ATM fees
    • Online bill pay
    • 24/7 customer service
    • Overdraft protection
    Cons
    • No physical branch locations
    • No way to deposit cash


    Read Our Review
    Read Our ReviewA looong arrow, pointing right

    The Ally Interest Checking Account is a solid low-fee checking account. You have free access to over 43,000 ATMs nationwide, but if you use an out-of-network ATM, Ally doesn’t charge a fee. If the out-of-network ATM provider charges you, then Ally will reimburse up to $10 per month.

    If you have a savings or money market account through Ally, then you can set up overdraft protection to transfer funds from another account into your checking account should you risk overdrawing.

  • Details
  • Pros & Cons

    • Terms ranging from 3 months to 5 years
    • Early withdrawal penalty of 60 days interest penalty term of 24 months or less; 90 days interest for term of 25 to 36 months; 120 days interest for terms of 37 to 48 months; 150 days interest for terms of 49 months or more
    • Interest compounded daily, paid monthly
    • FDIC insured
    Pros
    • Competitive APY
    • No required opening deposit
    • Low early withdrawal penalties
    Cons
    • No terms over 5 years
    • No physical branch locations


    Read Our Review
    Read Our ReviewA looong arrow, pointing right

    Ally pays competitive rates on its CDs, and it’s one of the few banks that doesn’t require a minimum opening deposit. Most banks ask you to put down hundreds or thousands of dollars to open a CD, but you can open an Ally High Yield CD with any amount.

    Along with the Ally High Yield CD, Ally offers a Raise Your Rate CD, which allows you to increase your rate should Ally’s rates go up. You can increase your rate once during a 2-year term and twice during a 4-year term. Ally also offers an 11-month No Penalty CD

    If you’re worried you’ll need access to funds before your CD matures, then Ally could be a good option. The bank’s early withdrawal penalties are lower than what you’ll find with most banks, or you can open the No Penalty CD.

    APY

    0.50% on all balance tiers

  • Details
  • Pros & Cons

    • Access to checks and a debit card
    • Interest compounded daily, paid monthly
    • FDIC insured
    Pros
    • No opening deposit or minimum account balance
    • No monthly service fee
    • Access to a debit card
    • Access to paper checks
    • Out-of-network ATM reimbursements of up to $10 per month
    • 24/7 customer service
    • Easy-to-use mobile app
    • Link to other Ally bank accounts
    Cons
    • Not the highest money market account APY
    • No physical branch locations
    • $10 excess transaction fee (paused during COVID-19)


    Read Our Review
    Read Our ReviewA looong arrow, pointing right

    Savings and money market accounts have a lot of similarities, but one perk of a money market account is that it typically makes it easier to access your money than a savings account does. The Ally Money Market Account makes it especially easy by sending you both a debit card and paper checks.

    The Ally Money Market Account pays a higher APY than most brick-and-mortar banks, but you can find higher rates at other online banks.

    Ally offers a wide range of products. Along with its bank accounts, you can also open investment accounts, take out a mortgage, or refinance your home.

    Ally is an online-only bank, but it has physical ATMs. It’s part of the Allpoint ATM network, so you have free access to over 43,000 Allpoint ATMs around the US. If you use an out-of-network ATM and the ATM provider charges a fee, then Ally will reimburse up to $10 per month.

    The Ally mobile app has received 4.7 out of 5 stars in the Apple store, and 4 out of 5 stars in the Google Play store.

    Live customer service is available 24/7, both by phone and online chat.

    Your money is FDIC insured for up to $250,000, or $500,000 if you have a joint account.

    We compared Ally with two other online banks with competitive rates: Marcus by Goldman Sachs and Capital One.

    Ally review vs. Marcus review

    Marcus only has a savings account and CDs, so if you’re looking for a checking or money market account, you’ll want to go with Ally.

    Both banks offer term and no-penalty CDs, but Marcus doesn’t have anything like the Ally Raise Your Rate CD that lets you increase your rate during the term. You may prefer Marcus for a no-penalty CD, though. Ally only has an 11-month CD, but Marcus has terms for seven, 11, and 13 months.

    Ally review vs. Capital One review

    Both banks have CDs, savings accounts, and checking accounts. If you want a money market account or a type of CD other than a regular term CD, then you’ll want to go with Ally.

    Although Capital One is considered an online bank, it does have over 470 physical branches in eight US states and Washington DC. So if you live near a branch and would like a combination of online and in-person banking, then you might like Capital One.

    Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.

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    More:

    Ally Bank
    Ally Bank CD
    Ally high-yield savings account
    Ally Interest Checking Account

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