Ally Bank Review: Services, Pros and Cons (February 2025) (original) (raw)
Ally has come a long way from its humble beginnings in 1919 to an online bank today that offers a vast array of financial products with low fees and competitive rates.
In this review, we at the MarketWatch Guides team take a deep dive into Ally Bank’s products and reputation so you can determine if it’s the right place to help you reach your personal finance goals.
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Featured Savings Accounts
FEATURED
Lending Club
4.3
APY 3.50%
Bonus N/A
Min. Deposit Amount $0
Earn up to 4.75% APY with $250+ deposits per month
SoFi Checking + Savings
4.8
APY 3.80%
Bonus Up to $300
Min. Deposit Amount $0
SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either 50(withatleast50 (with at least 50(withatleast1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR 300(withatleast300 (with at least 300(withatleast5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking#1.
UFB Portfolio Savings
4.6
APY 4.01%
Bonus N/A
Min. Deposit Amount $0
Unlock up to 4.21% APY, Combine Freedom Checking with Portfolio Savings to boost your savings APY by up to 0.20%
Discover
4.6
APY 3.75%
Bonus N/A
Min. Deposit Amount $0
Ally Bank Summary
Our Ally Bank Ratings
We give Ally 4.5 out of 5 stars after evaluating factors including its branch availability, account fees, interest rates and customer support. The bank scores highest for its checking accounts, with its certificates of deposit (CDs) and overall banking experience right behind.
Here’s how the company scores in each of our review categories:
*Ratings are determined by our editorial review team. Learn more about our scoring methodology.
Ally Bank vs. Other Top Banks
Ally is a top choice when compared with other large U.S. banks. It offers a variety of bank accounts and can offer higher APYs than its brick-and-mortar peers in many cases.
Although it doesn’t offer the ability to bank in person or deposit cash, Ally Bank customers can access nearly three times the number of ATMs as competing banks such as Chase, Wells Fargo and Bank of America. Additionally, none of Ally’s deposit accounts have minimum opening or balance requirements.
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The listings that appear are from companies from which this website may receive compensation, which may impact how, where and in what order products appear. Not all companies, products or offers were reviewed in connection with this listing.
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|---|---|---|---|---|
| Our Rating | 4.5 | 4.0 | 3.8 | 4.0 |
| Savings APY | 3.80% | 0.01% | 0.05% | 0.01% |
| 1-Year CD APY | 3.90% | 0.01% | 2.00% | 0.03% |
| Number of Branch Locations | Online Only | 4,700 | 4,600 | 3,800 |
| Number of ATM Locations | 43,000 | 15,000 | 11,000 | 15,000 |
| Available Deposit Products | Checking, Savings, CDs, Money Market | Checking, Savings, CDs | Checking, Savings, CDs | Checking, Savings, CDs |
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|---|---|---|---|---|
| Our Rating | 4.5 | 4.0 | 3.8 | 4.0 |
| Savings APY | 3.80% | 0.01% | 0.05% | 0.01% |
| 1-Year CD APY | 3.90% | 0.01% | 2.00% | 0.03% |
| Number of Branch Locations | Online Only | 4,700 | 4,600 | 3,800 |
| Number of ATM Locations | 43,000 | 15,000 | 11,000 | 15,000 |
| Available Deposit Products | Checking, Savings, CDs, Money Market | Checking, Savings, CDs | Checking, Savings, CDs | Checking, Savings, CDs |
*The bank offers a low fee that is waivable if at least one requirement is met, such as a recurring direct deposit, a minimum monthly balance or a linked savings account. Requirements vary by bank.
Who Is Ally Bank Best For?
If you’re comfortable with banking online, Ally Bank is worth considering. It has all the deposit accounts you could want, and all of them come with competitive interest rates. The lack of fees and minimum balance requirements are also a plus, making Ally’s accounts accessible to anyone. Having customer service support at all hours is also a positive.
Ally Bank Account Options
We rate Ally 4.5 stars for its overall customer banking experience including ease of access to perform banking transactions and other features. Ally offers a variety of deposit accounts, including:
- A high-yield savings account
- A checking account (which it refers to as its Spending Account)
- A money market account
- High-yield CDs with fixed rates, two bump-up CDs and a no-penalty CD
All of these deposit accounts are insured by the Federal Deposit Insurance Corp. (FDIC) up to the maximum allowable limit of $250,000 per depositor for each qualifying account ownership category.
In addition, Ally offers credit cards, individual retirement accounts (IRAs), investment accounts and mutual funds. You can also shop for a mortgage, auto loans or personal loans with the bank. Although Ally is a full-service bank, it doesn’t have physical locations, and you can only make deposits by transferring money from another bank or Ally account, wire transfer, mobile deposit via the Ally app or mailing in a check.
| Ally Account | APY* | Minimum Opening Deposit | Minimum Account Balance |
|---|---|---|---|
| Spending Account | 0.10% for balances less than 15,0000.2515,0000.25% for balances of 15,0000.2515,000 or more | 0∣0 | 0∣0 |
| Savings Account | 3.80% | 0∣0 | 0∣0 |
| IRA Savings Account | 3.80% | 0∣0 | 0∣0 |
| High Yield CD | 2.90% to 4.10% | 0∣0 | 0∣0 |
| Raise Your Rate CD | 3.50% | 0∣0 | 0∣0 |
| No Penalty CD | 3.75% | 0∣0 | 0∣0 |
| IRA High Yield CD | 2.90% to 4.10% | 0∣0 | 0∣0 |
| IRA Raise Your Rate CD | 3.50% | 0∣0 | 0∣0 |
| Money Market Account | 3.80% | 0∣0 | 0∣0 |
*APY accurate as of November 13, 2024
Ally Bank Customer Experience
Ally generally has a positive reputation as a financial institution, earning an A rating from the Better Business Bureau and receiving a rating of 5 out of 5 stars from Bauer Financial, an independent bank and credit ratings company. However, customer service ratings do not score the same high marks.
The bank’s Android app receives 2.6 out of 5 stars on Google Play, while the Apple App Store has a rating of 4.7 out of 5 stars.
In 2013, the Consumer Financial Protection Bureau (CFPB) and the Department of Justice ordered Ally Financial Inc. and Ally Bank to pay $80 million in damages for discriminatory lending practices, where it charged higher interest rates for auto loans based on borrowers’ race or national origin. We reach out to Ally for comment on this matter but did not receive a response.
Since then, Ally has implemented a diversity, equity and inclusion initiative and hired a Chief Diversity Officer. Some of the programs include the launching of an entrepreneurial program aimed at students from historically Black colleges and universities and donating millions to local communities in support of social equity, economic mobility and COVID relief.
The Bottom Line: Is Ally Bank Right for You?
Ally could be a great option for anyone seeking a full-service bank insured by the FDIC that offers high-yield deposit accounts without any minimum opening deposit or balance requirements.
Since the bank is only online, it can offer lower fees and higher interest rates than banks with physical branches and more overhead. Those who aren’t comfortable banking online or through a mobile app or simply want to have an in-person banking experience should opt for a traditional, brick-and-mortar bank instead of an online bank like Ally.
Learn More About Ally Bank
See how Ally stands out in our roundups of the best financial institutions and deposit products available today:
- #2 on Best CD Rates
- #2 on Best 1-Year CD Rates
- #3 on Best Banks and Credit Unions
- #3 on Best IRA CD Rates
- #7 on Best Money Market Account Rates
FAQ: Ally Bank Reviews
Ally Bank is a reliable bank with all deposits insured by the FDIC up to $250,000 per depositor for each qualifying account ownership category.
The main downsides of Ally Bank are related to it being an online-only bank. You can’t do any of your banking in person and you also can’t deposit cash to your account. Someone who prefers in-person banking or frequently has to make cash deposits will find this makes the bank an unappealing option.
Deposits with Ally Bank are safe since they are insured by the FDIC. Additionally, Ally says customers will not be held liable for any unauthorized online or mobile banking transaction as long as they report it to the bank within 60 days of receiving their statement.
Methodology
Our team researched more than 100 of the country’s largest and most prominent financial institutions, collecting information on each provider’s account options, fees, rates, terms and customer experience. We then scored each firm based on the data points and metrics that matter most to potential customers. Read our full methodology.
Savings and money market accounts
The best scores go to banks, loans and fintech companies with high interest rates and low or no fees or minimum opening deposits.
High marks are given to those with multiple accounts and minimal fees, plus benefits such as reward programs and mobile check deposit.
Top-rated financial institutions have low or no minimum opening deposits, as well as a variety of term options and specialty CDs for flexibility.
Banking experience and access
Providers that excel in this category have large branch and ATM networks and multiple checking and savings accounts, and they earn more points for offering CDs and money market accounts.
35% Savings and money market accounts
30% Checking accounts
20% Certificates of deposit
15% Banking experience and access
Savings and money market accounts
The best scores go to banks, loans and fintech companies with high interest rates and low or no fees or minimum opening deposits.
Checking accounts
High marks are given to those with multiple accounts and minimal fees, plus benefits such as reward programs and mobile check deposit.
Certificates of deposit
Top-rated financial institutions have low or no minimum opening deposits, as well as a variety of term options and specialty CDs for flexibility.
Banking experience and access
Providers that excel in this category have large branch and ATM networks and multiple checking and savings accounts, and they earn more points for offering CDs and money market accounts.
All America Bank, Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Airlines Credit Union, American Express National Bank, Apple Bank, Arvest Bank, Associated Bank, Axos Bank, Banesco Bank, Bank of America, Bank of Hope, Bank Purely, Bank5 Connect, Barclays, Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO, BMO Alto Bank, Bread Savings (formerly Comenity Direct), BrioDirect, Capital One Bank, CFG Bank, Charles Schwab, Charlie Financial, Chase Bank, Chime, CIBC USA, CIT Bank, Citibank, Citizens, Citizens Bank, Colorado Federal Savings Bank, Comerica Bank, Connexus Credit Union, Consumers Credit Union, Credit One Bank, Cross River Bank, Current, Customers Bank, Delta Community Credit Union, Discover Bank, East West Bank, Emigrant Direct, EverBank (formerly TIAA Bank), Federal Savings Bank, Fifth Third Bank, First Citizens Bank, First Internet Bank (of Indiana), First National Bank of America, First Tech Federal Credit Union, FNBO Direct, Frost Bank, Golden 1 Credit Union, Heritage Bank NA, HSBC, Huntington Bank, KeyBank, Lafayette Federal Credit Union, Lake Michigan Credit Union, LendingClub, Limelight Bank, Live Oak Bank, Lonestar Bank, M.Y. Safra Bank, M&T Bank, Marcus by Goldman Sachs, Mercury Bank, Merrick Bank, Michigan State University Federal Credit Union, Milli, Morgan Stanley Private Bank, Mountain America Credit Union, My eBanc, MySavingsDirect, National Bank of Kansas City, Navy Federal Credit Union, NBKC Bank, North American Savings Bank (NASB), Northpointe Bank, Patelco Credit Union, PenFed Credit Union (Pentagon Federal), PNC Bank, Popular Direct, Presidential Bank, Provident Bank, Quontic Bank, Quorum Federal Credit Union, Randolph-Brooks Federal Credit Union, Regions Bank, Ridgewood Savings Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Service Credit Union, SoFi Bank, South State Bank, Spectrum Credit Union, Spring Bank, Star One Credit Union, State Bank of Texas, State Department Federal Credit Union, State Employees’ Credit Union, Suncoast Credit Union, Sutton Bank, Synchrony Bank, Synovus Bank, TD Bank, Texas Capital Bank, Third Federal Savings & Loan, Transportation Alliance Bank (TAB Bank), Truist Bank, U.S. Bank, UFB Direct, Umpqua Bank, Upgrade, USAA Bank, USAlliance Financial, Valley National Bank, Varo Bank, Vio Bank, VyStar Credit Union, Webbank, Webster Bank, Wells Fargo, Western State Bank, Zions Bank, Zynlo Bank
*Data accurate at time of publication
Editor’s Note: Parts of this story were auto-populated using data from Curinos, a research firm that collects data from more than 3,600 banks and credit unions. For more details on how we compile daily rate data, check out our methodology here.