Is Ally a Good Bank?

I think Ally is a good online bank, but see for yourself! If you’re considering banking with Ally, keep in mind that it’s an online bank. While you won’t have branch access, Ally has some of the highest APYs out here, low-fee deposit accounts and tons of financing options.

Is Ally legit?

Yes, Ally is a legitimate bank. It is FDIC-insured and headquartered in Michigan. Ally was formerly General Motors Acceptance Corporation (GMAC) and rebranded as Ally Financial in 2009.

Just like other traditional financial institutions, Ally’s deposit accounts are protected up to $250,000 per depositor. In the unlikely event of a bank failure, your funds in Ally deposit accounts are protected up to that amount.

Ally’s bank accounts

It’s fairly easy for me to say Ally is a good bank. I frequently add Ally’s deposit accounts to best lists, including the best savings accounts and best CD offerings.

Across Ally’s account and product offerings, most have no monthly fees and offer simple online applications, while customers frequently praise the bank for its high savings rates.

Ally offers one checking account and one savings account. In addition to those two standard accounts, Ally offers CDs, a money market account and investing services.

Ally Spending Account

The Ally Spending Account is Ally’s checking account. It has no monthly maintenance fees, overdraft fees or opening deposit requirements. Perks of the Spending Account include:

• Earn up to 0.25% APY on your balance
• Envelope budgeting with “buckets”
• Optional overdraft services Transfer Service and CoverDraft
• Free checks
• Free incoming wires
• Early direct deposit
• Large fee-free ATM network with Allpoint and ATM reimbursements

Ally Savings account

The Ally Savings account offers up to 3% APY. There are no monthly fees or balance requirements, and you’ll have access to the digital envelope budgeting tool called “buckets,” which allows you to sort your savings goals.

The account also comes with optional round-ups and Surprise Savings. The round-up feature automatically rounds up Spending Account debit card purchases to the nearest dollar and deposits the difference into your savings. The Surprise Savings feature analyzes your linked checking accounts for safe-to-save funds and automatically transfers them to your savings.

Ally’s CD offerings are also fantastic, with one of the best offerings being the 3.5% APY on a 6-month term. There are three CDs to choose from, each with various terms and no minimum opening deposits. Plus, its loyalty program offers rate increases when you renew CDs. Overall, the rates are very competitive, and there’s nothing negative to say about the banks’ CD offerings.

Other products and services

Ally also has some other services:

• Ally Money Market. Offers a very high 3% APY on all balances, a debit card and checkwriting privileges. The perks are nearly identical to the Ally Spending Account: no monthly maintenance fees, no overdraft fees, free checks, no fees for receiving wire transfers, no opening deposit requirement and unlimited ATM withdrawals.
• Investing. Check out robo portfolios, investing advice, IRAs, stocks and exchange-traded funds (ETFs), bonds, mutual funds and much more.
• Vehicle financing. Take out a car loan, refinance or look into Ally’s lease buyouts. Ally can also help you find a dealership and offers vehicle protection benefits.

Customer feedback and reviews

Like other online banks, Ally has got some mixed reviews but it’s overall solid. It hasn’t had recent issues with regulators, and on the whole, Ally has significantly fewer complaints filed with the BBB compared to other banks. Most online or large banks have thousands of BBB complaints, so Ally performs really well in that area.

Happy customers report having no issues with Ally, praising the friendly customer support, the high APYs on savings and the limited fees.

Redditors also express skepticism about how Ally can offer such high interest rates on savings accounts compared to other institutions, but other users explain how Ally can save money by not having physical branches. It’s common for online banks to offer significantly higher savings rates than traditional institutions due to the lack of maintenance costs.

A common Ally complaint is that deposit times can be a bit slow, depending on how large the deposit is, but that’s pretty typical. Other negative reviews mention difficulties contacting a customer representative, frozen deposits, attempts at resolving fraudulent charges and wire transfers or deposits not going through. But overall, these complaints are typical for financial institutions.

Security measures

Ally Bank guarantees you will not be liable for unauthorized transactions, provided you report them to the bank. Also, Ally customers can download and install Webroot SecureAnywhere for free on up to three devices.

• Free anti-virus and anti-malware software
• 2-step authentication, such as a security question
• Transport Layer Security (TLS) Encryption
• Earn a Security Badge by testing your knowledge and learning to protect your information
• 24/7 customer support

Ally fees

Using my usual table for listing fees and deposit requirements, I couldn’t find anything to add for Ally. If you like fee-free online banking, then Ally really aces this test.

Compare with leading bank accounts

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Bottom line

All in all, we can safely say that Ally is a solid online bank that offers low-fee deposit accounts, high APYs on savings accounts and various lending services. But if it’s still not just right for you, see how Ally compares to other top banks.

• Ally vs. Chime
• SoFi vs. Ally
• SoFi vs. Chime

Frequently asked questions

Does Ally work with Zelle?

Yes, Ally Bank works with Zelle. Learn more about Zelle here.

Can I apply for a personal loan for Ally?

No, Ally doesn’t offer personal loans anymore. Existing Ally Lending personal loans are now through Synchrony, which also offers high-yield savings and other banking services.

Does Ally accept cash deposits?

Yes, Ally can now accept cash deposits at any Walmart retail location using your Ally banking app. There are also no fees for this service.

What bank is behind Ally?

Ally is an FDIC-insured bank on its own. Unlike many online banking options, Ally isn’t a fintech company and doesn’t need a bank partner behind it to provide banking services or FDIC insurance.

To make sure you get accurate and helpful information, this guide has been edited by Holly Jennings as part of our fact-checking process.

Written by

Bethany Hickey

Banking editor

Bethany Hickey is the banking editor and personal finance expert at Finder, specializing in banking, lending, insurance, and crypto. Bethany’s expertise in personal finance has garnered recognition from esteemed media outlets, such as Nasdaq, MSN, Yahoo Finance, GOBankingRates, SuperMoney, AOL and Newsweek. Her articles offer practical financial strategies to Americans, empowering them to make decisions that meet their financial goals. Her past work includes articles on generational spending and saving habits, lending, budgeting and managing debt. Before joining Finder, she was a content manager where she wrote hundreds of articles and news pieces on auto financing and credit repair for CarsDirect, Auto Credit Express and The Car Connection, among others. Bethany holds a BA in English from the University of Michigan-Flint, and was poetry editor for the university’s Qua Literary and Fine Arts Magazine. See full bio

Bethany's expertise

Bethany has written 458 Finder guides across topics including:

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