Ally Bank – Online Banking, Saving & Investment Made Easy

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Ally Bank Online
Ally Bank Online

Ally Financial, the parent company of Ally Bank, is a well-known provider of financial services with headquarters in Detroit.

It provides services to thousands of auto dealers as well as millions of retail clients.

What is Ally Bank?

The banking section of General Motors Acceptance Corp. (GMAC), which was initially an auto financing firm, gave rise to Ally Bank, an online bank.

GMAC Bank was renamed Ally Bank in 2009.

Credit cards, home loans, money market accounts, investment products, certificates of deposit, checking accounts, and savings accounts are just a few of the numerous products the bank currently provides to customers countrywide.

Overview

Ally Bank solely does business online and provides checking, savings, money market, and certificate of deposit accounts as well as credit cards, mortgages, auto loans, and investment products.

As of December 31, 2020, Ally had $172 billion in assets, placing it 17th among American banks.

The business has 6.5 million consumers and 9,500 staff.

Although Ally doesn’t have any physical locations, Allpoint, an interbank network that offers surcharge-free ATM access to clients of partner banking institutions, allows consumers to access their accounts at around 43,000 ATMs.

Details about Ally

Based in Detroit is Ally Financial Inc.

In 1919, GMAC, a car lending firm, was the precursor to Ally.

The business founded Ally Bank in 2009 after founding GMAC Bank in 2000.

Pros & Cons

Pros

  • No monthly fees or minimum balance requirements.
  • Competitive savings rate.
  • Lower than normal overdraft costs that apply only once per day.
  • Monthly reimbursement of $10 for non-Allpoint ATM costs.
  • 24 hour live telephone customer assistance.
  • No-fee checks

Cons

  • Unable to make cash deposits into any accounts.
  • There are none.
What Does Ally Bank Offer?

Ally provides a range of banking accounts and services as an all-inclusive online bank.

  • Checking account
  • Savings account
  • CDs
  • Money market account
Ally Bank Checking

With its interest checking account, Ally provides a means of earning interest.

Rates are determined by your account balance rather than any minimum startup deposit or ongoing balance requirements.

An interest-bearing checking account from Ally Bank comes with the following benefits:

  • No required minimum.
  • No monthly costs.
  • The ability to perform transactions over the phone, online, or by mail;
  • The option to transfer money from and to other bank accounts.
  • Remotely deposited checks.
  • No-fee checks
  • There is no fee for the overdraft transfer service, which transfers money to pay an overdraft from linked Ally savings or money market accounts.

The free debit card, checks, and fee-free access to AllPoint ATMs located all across the United States are all included with Ally’s online checking accounts.

Additionally, Ally Bank will pay up to $10 in fees from other ATMs per statement month.

Customers of Ally get free access to online bill-paying services through interest checking accounts.

Ally Bank Interest Checking
Account Name Min Opening Balance Monthly FeeAPY
Interest Checking $0$00.10% if
< $15,000

0.25% if 
$15,000+
Ally Bank Savings

No of how much money you have in your account, Ally’s online savings account delivers a high income of 1 percent APY.

A fantastic strategy to save money to achieve your financial objectives is by having an online savings account.

One savings account is available from Ally, and it has the following features:

  • No required minimum.
  • No monthly costs.
  • Low-cost interest rates.
  • Daily interest compounding.
  • Has the ability to move money across bank accounts.
  • The direct deposit.
  • Deals made over the phone, online, or by mail.
  • Remotely deposited checks.

Federal withdrawal restrictions apply to Ally’s online savings accounts.

There is a combined maximum of six for specific withdrawals and transfers every statement period.

A $10 fee is applied by Ally Bank for each transaction that exceeds the cap.

Ally Bank Savings Accounts
Account NameMin Opening DepositMonthly FeeAPY
Online Savings$0$01.00%
Ally Bank CDs

High-Yield CDs have periods ranging from three months to five years.

Customers can earn up to 2.50 percent APY based on the terms they choose.

There is no required minimum deposit, and there are no monthly fees.

Early withdrawals incur penalties of up to 150 days’ interest.

Ally Bank High Yield CDs
TermAPY
3 Months0.50%
6 Months0.75%
9 Months 1.00%
12 Months 1.75%
18 Months2.00%
20 Months2.35%
24 Months1.75%
36 Months2.25%
48 Months1.75%
60 Months2.75%

Raise Your Rate CDs allow clients to boost their earnings if Ally’s rates rise. Rate increases are allowed once for two-year CDs and twice for four-year CDs. These CDs currently have an APY of 1.75 percent.

There are no monthly maintenance fees, and no minimum initial deposit is required. Increase Your Rate CDs also have early withdrawal penalties of up to 150 days’ interest.

Ally Bank Raise Your Rate CDs
TermAPY
Two Years1.75%
Four Years1.75%

CDs with no penalties that pay up to 1.00 percent APY.

Account holders can withdraw both interest and principle monies at any time, beginning six days after opening an account and incurring no penalty.

All No Penalty CDs have 11-month periods, no required minimum initial deposit, and no monthly fees.

Ally Bank No Penalty CDs
TermBalanceAPY
11 MonthLess than $5,0001.00%
11 Month$5,000 to $24,9991.00%
11 Month$25,000+1.00%

Here are some of the CD’s highlights:

  • No deposit is required.
  • Daily compounded interest
  • You obtain the greater APY if interest rates rise within 10 days of opening a CD.
  • High Yield terms range from three to five years, with Raise Your Rate terms of two to four years and No Penalty terms of 11 months.
  • With Raise Your Rate, you can earn a higher annual percentage yield on a two-year CD once and twice on a four-year CD.
  • With No Penalty, you can withdraw all of your cash after six days without losing any of your capital or earned interest.
Ally Bank Money Markets

Ally’s money market account has higher interest rates than traditional banks, but it is comparable to other online banks.

All holdings presently receive a 1.00 percent annual percentage yield.

There is no minimum beginning deposit for money market accounts, and there are no monthly fees.

Customers can also get a debit card and use the AllPoint ATM network for free.

Ally even reimburses out-of-network ATM fees up to $10 per statement cycle.

There are no limits on ATM withdrawals, but there is a monthly transaction limit of six, with a $10 fee for any transaction over the limit. Ally money market accounts offer include check writing privileges.

Ally offers one money market account with the following features:

  • No maintenance fees
  • No minimum balance required.
  • The same features of an Ally savings account, plus a debit card and free checks.
  • Lower annual percentage yield than Ally savings.
Ally Money Market Accounts
Account NameMin Opening Deposit Monthly FeeAPY
Money Market$0$01.00%
Ally Bank Fees

Overdraft fees are $25 per day, with a daily limit of one cost.

International transactions account for 1% of all transactions.

Savings withdrawals that exceed the monthly limit: $10 each withdrawal after the first six.

How To Open an Ally Bank Account

Ally Bank claims that the entire account opening process takes five minutes or less.

The secret to accomplishing it swiftly and correctly is to have everything prepared.

To save you time and hassle, the following steps will walk you through the most crucial elements of what you need to do to open an Ally Bank Checking Account.

1. Determine Which Accounts You Require

Checking, savings, money market, and CD accounts are available from Ally Bank.

2. Collect Your Personal Data

To open an Ally Bank account, you must be at least 18 years old and supply certain personal information, which includes the following:

• Your legal name

• Your date of birth

• Your Social Security number or tax identification number

• A street address in the United States

Ally also mentions that it may ask to examine identification documents, such as your driver’s license.

3. Submit an online application

When you’re ready to apply, go to the Ally Bank website’s account comparison page.

Select the sort of account you want from the four upper tabs and click “Open Account.”

Follow the instructions in the application.

You can even create up to four shared bank accounts.

When you’re ready, submit the application and wait a few seconds.

You should get a response immediately away from the screen.

4. Open the Account

There is no required minimum beginning deposit, however you can fund your new Ally Bank account in a variety of ways:

  • Make direct deposit of your paychecks a habit.
  • Transfer funds from another bank account
  • Wire money
  • Deposit a check using the Ally eCheck Deposit mobile app
  • Send a check to Ally Bank, P.O. Box 13625, Philadelphia, PA 19101-3625

5. Download the Mobile App

The Ally Bank mobile app serves as your account management hub.

Download the app from the App Store or Google Play while you wait for your debit card to arrive in the mail.

Set up online banking and manage your new accounts with it.

How To Log In to Your Ally Bank Account From a Computer

Customers of Ally Bank who want to bank online can do so in a matter of seconds.

The following are the steps for logging in to your Ally bank account from a computer:

1. Go to Ally.com and sign in to your online banking account.

2. In the login box, click “Enroll in Auto or Bank online services” to create a username and password to access your accounts.

To generate your account details, follow the instructions.

3. Once you’ve created a username and password, go to the sign-in page’s top right corner and select the type of account you want to sign into from the drop-down option.

4. Enter your login and password in the text boxes given.

5. Click “Log In,” and you’ll be able to access your account right away.

How To Log In to Your Ally Bank Account From a Mobile Phone or Tablet

Ally Bank provides a free mobile banking app that allows you to execute online transactions.

Banking at your fingers is made possible through mobile banking.

Here’s how to access your Ally account from a mobile device:

1. If you have an Apple device, open your mobile browser and type m.allybank.com or go to the iTunes Store to download Ally Mobile, the Ally banking app.

If you have an Android device, go to the Google Play Store.

2. Open the Ally Mobile Banking application.

3. The following screen will be your login page.

Fill up the blanks with your login and password.

4. Click the “Log In” button.

How To Retrieve a Forgotten Username or Password

If you have forgotten your login or password, you can recover it by following these simple steps:

1. Go to the Ally Bank sign-in page.

2. Under the “Log In” button, click the forgot “username” or “password” link.

3. If you clicked “username,” a phone number will appear for you to call in order to re-access your account.

If you selected “password,” proceed to step four.

4. Enter your username and Social Security number into the text boxes available.

5. Select “Send password hint through email/text” or “Create a new password.”

6. Click “Continue,” and you will receive an email or text message with your password hint or code for setting a new password.

Once you’ve created your account online, you may take advantage of the benefits Ally Bank provides.

You’ll be able to view and print your account balance, pay bills, and even deposit funds.

Furthermore, your account is FDIC-insured, so you can rest assured that your money is safe and secure. If you have any difficulty accessing your Ally Bank login, please contact the Customer Care Support team at 1-877-247-2559.

Who Is Ally Bank Best For?

Individuals looking for a full-service online bank should find Ally Bank appealing. It’s an excellent choice for customers who want to:

  • Earn competitive rates on savings accounts and CDs
  • Have free access to ATMs;
  • Bank without worrying about minimum amounts or monthly fees
  • Speak with a live customer care person 24/7

Other Financial Products Offered By Ally Bank

Ally Bank also provides a wide range of other products and services, including:

  • Auto loans
  • Purchase mortgages
  • Refinance mortgages
  • Individual retirement accounts (IRAs)
  • Self-directed trading
  • Managed investment portfolios
How to open an Ally high-yield savings account

1. Go to Ally.com.

Navigate to Ally.com and search for its online savings account. (Please keep in mind that these screenshots were captured when Ally’s APY was 2.2 percent; it has since changed along with the Fed’s interest rate cuts.)

2. Click “open account.”

The “open account” button will take you to this page, where you can tell Ally if this is your first bank account. The five stages to opening an account are listed at the top of the window.

3. Choose a high-yield savings account.

Following that, you’ll pick the type of account you wish to open as well as the amount of your initial deposit. Ally

For its online savings accounts, Ally offers the same interest rate on all balance tiers.

4. Make an initial deposit

Before proceeding to the next step, you will have the opportunity to review your initial investment.

5. Confirm US residency

To open an account, you must be a US legal resident or resident alien.

6. Fill out your personal details

Next, input your basic information, including your name, birthdate, Social Security number, mother’s maiden name (for security purposes), and occupation.

7. Provide your social security number.

If you do not feel comfortable entering your Social Security number online, you can complete your application by calling Ally directly.

8. Supply address history

If you have moved in the recent five years, you will also be requested to provide your address history.

Many banks, including Ally, utilize your address history to verify your identification. It protects you from scammers who register accounts in your name.

9. Enroll in e-statements.

Because Ally is an internet bank, you must sign a document authorizing electronic statements (you can still obtain paper copies, if you like).

10. Fill out a tax form

You must sign another tax form before submitting your application. If you earn interest on your high-yield savings account throughout the year, you’ll receive a Form 1099-INT from your bank to send with your tax return, and the interest will be taxed at your regular income tax rate.

11. Await a review

Ally reviews your application in less than a minute.

12. Respond to security questions

If you haven’t guessed by now, Ally is a stickler for proof.

The final stage before your application is processed is to answer a few particular security questions, however random they may appear.

13. Make your initial deposit.

There is no minimum balance required to start an Ally high-yield savings account, but you can make an initial deposit if you like.

14. Register for an account

The final step is to create an internet account.

15. Increase security

Ally suggests adopting additional security measures once your account is set up.

16. Check for a security code

If you enable the security code option, Ally will send you a security code by text or email every time you attempt to log in to your account from a new computer.

17. Get acquainted with the layout.

Inside your account, this is how your dashboard will look.

Ally makes it simple to start and designate several savings accounts for different goals, as well as track the amount of interest earned on each account.

That’s all!

You’ll be given an account number and routing number, which you can use to set up one-time or recurring transfers.

Ally Bank Customer Service

When assistance is required, Ally Bank provides many options.

Phone help is accessible around the clock, seven days a week. Customers can also send secure communications by logging into their online account.

Ally also provides live chat help on their website for immediate assistance. General correspondence can also be mailed to Ally Bank Customer Care, P.O. Box 951 Horsham, PA 19044.

How to Bank With Ally Bank

You can apply for an Ally Bank account online at Ally.com. You must first select an account choice, enter some personal information, and then select a funding option. If and when your account is approved, Ally will notify you through email. Ally Bank also allows you to open an account by phone 24 hours a day, seven days a week, or by downloading and mailing an application form.

FAQs

Is ally a legitimate bank?

Ally Bank is FDIC-insured (FDIC No. 57803).

For each account ownership category, the federal government covers banking products from Ally up to $250,000 per depositor.

What is the minimum opening deposit for Ally Bank?

What is the minimum deposit required to open an account?

It is always free to open.

There are no monthly service fees either.

Is Ally Bank a big bank?

Ally is one of the largest car lending firms in the United States, with 4.5 million customers and 1.4 million car loans originated each year.

It is one of the largest banks in the United States in terms of assets, with 2.0 million depositors.

Is Ally Bank safe from hackers?

Ally employs numerous levels of encryption on its accounts and frequently monitors them. However, if your accounts are hacked, you will not be held liable for the false charges and activities. Ally, as an FDIC-insured bank, will repay your savings with the assistance of the federal government.

Is Ally Bank the best online bank?

Ally is one of our best institutions overall. It provides one of the best online checking accounts as well as a competitive interest rate. While there is no one bank that is best for everyone, Ally excels in other areas, such as savings and customer service.

How does Ally Bank make money?

How does Ally Invest generate revenue? Ally Invest generates revenue in the same manner as other banks and brokers.

Ally makes money on brokerage accounts using the concept of paying for order flow, or PFOF, as do practically all other brokers in this age of $0 trades.

Does Ally run your credit?

We’ll ask for your social security number and perform a secure “soft” credit check when you apply online for our 3-minute basic pre-approval. This has no effect on your credit score. We use your Transunion FICO Classic 04 credit score.

How much can you transfer from Ally Bank?

There is no transaction limit on how frequently you can transfer money between buckets. This is the advantage of using buckets rather than individual savings accounts. You can transfer money from one savings bucket to another at any time with buckets.

Conclusion

For consumers who desire to earn a greater APY than at a local bank, Ally Bank provides full-service online banking. If in-person banking isn’t required, Ally allows you to save money more rapidly by offering largely comparable rates. Although its money market and checking accounts don’t have the best rates, Ally Bank delivers on the overall. It provides enough solutions to fulfill the needs of the majority of consumers looking for a top-tier online bank.