When it comes to finding the best place to stash your money, the choice between online-only banks and traditional banks with physical branches can be a tough one. One bank that has been gaining popularity in the digital banking space is Ally Bank, the banking branch of Ally Financial. With its range of products and features, how does Ally Bank stack up against its competitors like Discover, CIT, and Chase? Let’s take a closer look.
Ally Bank products
Ally Spending Account
Ally’s Spending Account offers some great features that make it worth considering. Not only does it pay interest, but it also gives you early access to direct deposits, allowing you to get your money two days sooner after making two direct deposits. One innovative feature that sets this account apart is the ability to set aside money in spending buckets, making budgeting a breeze. With minimal fees and the convenience of a debit card, this account is a winner.
Why we recommend it: The competitive interest rate, minimal fees, early access to direct deposits, and the innovative spending buckets feature make Ally’s Spending Account worth considering. Plus, it even offers paper checks for those who still use them.
Ally high-yield savings account
Ally’s high-yield savings account is another standout product. With competitive interest rates, no monthly service or overdraft fees, and no minimum deposit requirements, it’s a great option for savers. Account holders can also set up multiple savings “buckets” to help them reach their savings goals faster.
Why we recommend it: Competitive interest rates, sophisticated savings tools, and around-the-clock customer service make Ally’s high-yield savings account a top choice for savers.
Ally certificate of deposit (CD)
Ally offers a range of certificate of deposit (CD) options, including raise-your-rate and no-penalty CDs. With no minimum deposit requirements and competitive rates, Ally’s CD offerings are worth considering.
Why we recommend it: With its different CD products, competitive rates, and no minimum account requirements, Ally’s CDs are a smart choice for those looking to grow their savings.
Ally Money Market Account
Ally’s Money Market Account offers competitive rates, low fees, and no minimum account requirements. Whether you have less than $5,000 or more, you’ll earn the same competitive interest rate. It’s definitely worth considering.
Why we recommend it: With its competitive rates and flexible balance tiers, Ally’s Money Market Account is a solid option for those looking to maximize their savings.
Ally Bank features
Fees
Ally Bank stands out when it comes to fees. Unlike many other banks, Ally doesn’t charge overdraft fees or monthly maintenance fees on its checking and savings accounts. Additionally, there are no low balance fees. ACH transfers, wires, and cashier’s checks also come at no additional cost.
Customer Experience
Ally’s customer support team is highly accessible, available 24/7 via chat, phone, email, or written correspondence. Managing your account is easy with Ally’s online and mobile banking options, and their user-friendly interface and advanced security features make banking a breeze.
History and reputation
Ally Bank has a rich history, starting out as an auto finance company in 1919 and growing into a trusted name in banking, credit lending, and wealth management. While they faced a data breach in the past, Ally has taken steps to resolve the issue and strengthen their security measures.
Who is Ally Bank for?
If you’re comfortable with online banking and prefer the convenience of managing your finances on a desktop or mobile app, Ally Bank is a great fit for you. It’s especially ideal for those looking to optimize short-term savings, avoid fees, and take advantage of innovative savings features and tools.
Is Ally Bank FDIC insured?
Yes, Ally Bank is FDIC insured. Deposits up to $250,000 per account holder per qualifying account are insured by the Federal Deposit Insurance Corporation. This includes checking, savings, money market, CD, and retirement accounts.
World presence
Although Ally Bank is an online bank, it has physical headquarters in Sandy, Utah, and a corporate center in Charlotte, North Carolina. Ally has employee offices across multiple U.S. locations, including Atlanta, Chicago, Dallas, Jacksonville, Little Rock, Minneapolis, New York, Philadelphia, and Pittsburgh.
How does Ally Bank compare?
Comparing Ally Bank with its competitors is not a straightforward task. Each bank offers different product packages, with factors like customer service, fees, and rates varying. While Ally Bank, Discover, and CIT Bank have high-interest savings rates, Discover offers a higher rate without requiring a minimum deposit like CIT Bank.
Frequently asked questions (FAQs)
- Are Ally Bank and Ally Financial the same? While they are part of the same company, Ally Bank is a wholly owned subsidiary of Ally Financial.
- How is Ally Bank ranked? Ally Bank ranks third overall in J.D. Power’s 2022 Customer Service Satisfaction Study.
- Who owns Ally Bank? Ally Bank is owned by institutional investors, with nearly 90% ownership. Retail investors and Ally Insiders make up the remaining percentage.
- How do I contact Ally customer service? Ally Bank has various contact options, including phone, chat, email, and written correspondence. Fraud can be reported through a dedicated line.
- Does Ally Bank have a chat feature? Yes, Ally Bank offers a chat feature that can be accessed through their website or mobile app.
At Personal Finances Blog, we believe Ally Bank offers a range of products and features that can help you optimize your finances. To learn more about Ally Bank and explore additional personal finance topics, visit Personal Finances Blog.