Ally Bank is one of the top 5 largest banks in the United States. Even though its a relatively small bank, it has a fairly wide reach since they offer financial services for most of the population. Unfortunately, not everyone wants to be in the banking business so Ally Bank focuses more on the larger banks and try to compete on the scale of larger banks. The banking market is rather competitive so it is good to be able to offer a unique product.

With the launch of a new Ally Bank product, Ally Bank Review 2021, we wanted to answer a question that has been on many people’s minds: Is Ally Bank Legit & Worth it?

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Ally Bank Review 2021: Is Ally Bank Legit & Worth it?

Ally Bank is a leading digital financial services company. The company offers a fully functional online bank with competitive rates, no minimum fees and 24/7 customer service.

For

  • No monthly maintenance fees or minimum balance requirements for current, savings and CD accounts.
  • The annual percentage yield (APR) is above the 0.50% average for savings.
  • Access to more than 43,000 free cash machines
  • 24×7 customer support

Cons

  • No possibility to deposit cash
  • There is no physical branch

Acorns

Ally Bank Review 2021: Is Ally Bank Legit & Worth it?

Minimum deposit $5 with a monthly fee of $1.

Automatic free money investment

Earn up to 5% cashback with an interest-bearing current account.

Hideaway

Ally Bank Review 2021: Is Ally Bank Legit & Worth it?

Start with an investment of just $5.

Buy fractional shares of companies like Amazon or Apple.

Only $1 monthly fee (for accounts up to $5,000) or 0.25% annual fee for accounts over $5,000.

BlockFi

Ally Bank Review 2021: Is Ally Bank Legit & Worth it?

High return (8.6%) on your deposits in cryptocurrencies.

No minimum withdrawal requirement and no monthly fees

Gemini insured portfolio – $200 million insurance value.

What is Ally Bank and how does it work?

Ally Bank Review 2021: Is Ally Bank Legit & Worth it?

Ally Bank is a leading digital financial services company. The company offers a fully functional online bank with competitive rates, no minimum fees and 24/7 customer service.

Here is the complete list of banking services offered by Ally Bank:

  • Check out
  • Savings
  • Money Market
  • Certificate of deposit (CD)
  • Mortgage
  • Car Loan
  • Private loans
  • Investment services
  • Pension benefits

To make online banking even easier, Ally Bank offers mobile applications for iPhone and Android smartphones. These applications allow you to manage all your accounts and make transfers on the go.

Yes, Ally Bank is a completely safe and reputable institution. Although this bank is 100% online and does not have physical branches like traditional banks, Ally must follow the same legal rules and regulations to receive permission to operate.

For this reason, Ally Bank has Federal Deposit Insurance (FDIC) that protects and insures your accounts up to $250,000.

Committees Ally Bank

The best thing about Ally Bank is that there are no bank fees. This means there are no opening or monthly maintenance fees for current, savings and CD accounts.

Cash withdrawals from over 43,000 Allpoint ATMs are also free.

Although the overdraft fee is $25.

Ally Bank Account Types

Ally Bank offers different types of accounts to meet your different banking needs. Let’s take a look at each of the accounts you can open at Ally Bank.

Ally Bank Online Savings Account

Ally Bank offers an online savings account that pays a relatively high APY (annual percentage yield) on your deposits, regardless of the amount.

Here you will find all the features of an online savings account:

  • 0.50% on your deposits
  • There is no minimum deposit
  • Reload your savings account from any other account, by check, wire transfer or mobile reload by check.
  • Withdraw money from any of your Ally Bank accounts, by requesting a check or outgoing wire transfer.
  • Organize your financial goals – set aside money for repairs to your home, a new car, a vacation, etc.
  • No monthly payments

Ally Bank Interest Account

Ally Bank offers an interest-bearing checking account that rewards you for simply using it.

Here’s what you can expect from this bill:

  • Earn 0.10% on balances under $15,000.
  • Earn 0.25% on balances of $15,000 or more.
  • No monthly maintenance costs
  • Use one of 43,000 free Allpoint ATMs.

Ally Bank Money Market Account

The Ally Bank Money Market account is essentially a combination of a checking and savings account. This means you can earn interest on your balance and spend money at any time.

Certificates of deposits (CDs)

Ally Bank High Yield CD

For those who want to grow their money while saving it, Ally Bank offers a variety of CDs (certificates of deposit), including what are known as high-yield CDs.

This is a traditional CD account where you agree to leave your money in the bank for a certain period of time. But unlike traditional CDs, Ally Bank offers a higher annual percentage yield (APY) on your money.

In exchange for leaving your money in the bank for a certain period of time, the bank will pay you a higher interest rate when you withdraw it compared to more flexible options like savings accounts.

The best part is that you can choose the maturity date of the high interest CDs yourself.  In addition, the Bank offers different interest rates for different maturities. For example, you may get a higher annual percentage yield if you open a one-year CD account instead of a three-month one.

Ally Bank High Yield CD interest rates:

Deadline APY (annual percentage yield)
3 months 0.20%
6 months 0.25%
Nine months 0.30%
12 months 0.60%
18 months 0.60%
3 years 0.65%
Children of 5 years 0.85%

When you open a high interest CD account with Ally Bank, there is no minimum deposit required to get started.

Another benefit of a high interest CD account at Ally Bank is that there is no minimum deposit required to get started. Other banks, on the other hand, typically require a minimum deposit of at least $500. This is especially useful if you don’t want to commit large sums of money.

Increased CD

Ally Bank offers Raise Your Rate CDs, which have the ability to raise interest rates so you’re not stuck with a low rate for several years.

What does that mean? Well, let’s say you open an account for 3 years at 0.65%. After some time, however, Ally changed the terms and increased the annual return to 0.70%. In that case, you have the option of requesting an increase in the annual yield of your existing CD account.

No penalty CD

When you open a CD account, you usually have to leave money in the account for a certain period of time. But things happen, and you may need money at any time. If you suddenly decide to withdraw your money and use it, you will be fined.

But Ally Bank offers a no-fee CD account, where your funds are liquid and you can withdraw 100% of your money within the first 6 days of account opening.

Ally Bank’s no-fee CDs are 11-month CDs, and you get 0.50% on deposits of any amount.

How do I open an account with Ally Bank?

Ally Bank Review 2021: Is Ally Bank Legit & Worth it?

Ally Bank offers different types of accounts that you can choose based on your needs. You can also select different features and manage them all in a single Ally Bank account.

To get started and open an account with Ally Bank, go to Ally.com and choose one of your favorite account types. You can find the accounts in the header and click the button to open your account.

You can also call Ally Bank at 1-877-247-2559 to request an account.

Remember, just like any other financial institution, you must provide personal and legal information when you open a bank account.

After opening an account with Ally Bank, you can download the Ally Bank app on your iPhone and Android and log in.

Ally Bank Pro & Con

Professional

  • No monthly maintenance fees or minimum balance requirements for current, savings and CD accounts.
  • The annual percentage yield (APR) is above the 0.50% average for savings.
  • Access to more than 43,000 free cash machines
  • 24×7 customer support
  • Well designed and understandable platform

Cons

  • No possibility to deposit cash
  • There is no physical branch

Ally Bank Alternatives

Ally Bank vs Revolut

While Revolut is a great alternative to Ally Bank when it comes to investing, both platforms have their differences. First, Ally Bank has low transaction and non-transaction fees, and Revolut offers free stock trading. In addition, Ally Bank offers a more diverse product portfolio than Revolut.

Ally Bank Review 2021: Is Ally Bank Legit & Worth it?

Summary Revolut

  • Allows the storage of different currencies
  • From $300 per month Free withdrawals at the cash machine
  • Services such as travel insurance
  • Constantly evolving possibilities

Ally Bank vs Chime Bank

Chime Bank is a good alternative to Ally Bank. And while both banks offer online banking with the same features and account options, there isn’t much difference between them.

Moreover, neither company offers commissions on their underlying accounts.

The only benefit Ally Bank offers is a $10 per month refund for out-of-network ATM withdrawals, which Chime does not.

Ally Bank vs CIT Bank

One of the main alternatives to Ally Bank is CIT Bank. While CIT Bank offers many high-interest savings accounts and CDs, Ally Bank is the best for interest-bearing online checking accounts.

Moreover, Ally Bank is more convenient for people with any amount of money in the bank. In fact, CIT Bank offers higher savings rates than Ally, but requires a minimum balance of $25,000 to receive a better annual return, while Ally offers lower interest rates but does not require a minimum balance.

Is Ally Bank worth it?

All in all, I would say that Ally Bank is worth serious consideration if you want to save and grow your money at a higher than usual interest rate.

Moreover, there is no minimum deposit, the bank offers low fees and, last but not least, the ability to manage all accounts online.

Frequently Asked Questions

How trustworthy is Ally Bank?

Ally Bank is considered to be a very trustworthy bank. It has a low fraud rate and a low complaint rate. What is the Ally Bank branch location near me? Ally Bank has a branch in the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming

Is my money safe in Ally?

Ally is a bank that uses the FDIC to protect your money. What are Ally’s hours? Ally is open from 8:00 a.m. to 10:00 p. Monday through Friday, and from 8:00 a. to 5:00 p. on Saturday. What is the address of Ally’s main office? Ally’s main office is located at 855 Market Street, San Francisco, CA 94103.

Is Capital One and Ally Bank the same?

No. Capital One is a bank that specializes in personal banking. Ally Bank is a credit union.

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