A checking account is the best type of bank account for handling everyday expenses. You don’t have to tap into your savings account or sell investments when you have enough cash in your checking account. However, some checking accounts are better than others. It’s possible to get rewards and high-interest rates on your checking account if you shop around. Ally Bank offers checking accounts with higher interest rates than average and other great features.
About Ally Bank
Ally Bank is an online bank that has no physical branches. The lower overhead allows them to reward customers with higher rates on checking and savings accounts. The mobile bank has a full suite of online banking services and has been helping customers since 2009. Ally Bank is a Utah-based company that is a division of Ally Financial Inc., a firm that has been around since the 1920s.
The bank offers mortgage products, credit products, investment accounts, personal loans, and other essential financial products. Getting a checking account with Ally Bank makes you a part of the company’s entire ecosystem of financial products.
What is an Ally Bank Checking Account?
An Ally Bank Checking Account gives you a place to store cash for everyday purchases. These accounts are insured by the FDIC, which means you get coverage for up to $250,000 in case the bank goes under.
Customers get to enjoy an interest rate on their checking accounts that is five times the national average. Checking accounts traditionally have lower interest rates than savings accounts, but getting 0.25% APY from an Ally Bank checking account is respectable, relatively speaking. If you branch out and also set up an Ally Bank Savings Account, you can get 4.00% APY on your extra cash.
How Does an Ally Bank Checking Account Work?
An Ally Bank checking account gives you a safe place to store your money. You know it’s insured, and you can visit a nearby ATM if you ever need to withdraw cash. Ally Bank has a network of over 43,000 ATMs where you can get fee-free withdrawals. If you use ATMs outside of the network, it is still possible to avoid fees. Ally Bank reimburses customers for up to $10 of ATM fees every statement cycle.
Each Ally Bank checking account also gives you access to the popular saving buckets feature. Saving buckets let you allocate funds in your checking account for specific purchases. If you want to save up for a vacation while making sure you have enough money set aside for groceries, an Ally Bank checking account can help. You won’t have to keep spreadsheets and frequently recalculate the numbers since Ally Bank lets you group your money by spending category.
Ally Bank users can also set up recurring, automatic transfers if they want to move money from their checking accounts to their savings accounts. You can also use auto transfers to move cash to your investment account and grow your wealth.
While these perks may sound enticing, along with the general protections of a checking account, every consumer must consider the fees. These fees can make banking costs feel excessive if you trust the wrong financial institution. Luckily, Ally Bank does not charge any monthly maintenance fees, and the company does not have any hidden fees. Customers also do not have to worry about a minimum balance requirement.
If you have any questions about your checking account, you can contact Ally Bank’s customer service. The company offers 24/7 support and lets customers call, chat, or email a representative.
Does Ally Bank Offer a Joint Checking Account?
You can open a joint checking account with Ally Bank, but it’s important to consider the pros and cons before opening one of these accounts. Joint accounts allow two or more people to deposit money into the same bank account. These accounts can help partners work toward a common goal and track progress.
However, joint checking accounts also give both partners equal control. Either partner can withdraw funds from the account at any time. It takes an immense amount of trust to create a joint checking account with someone. If that trust is already established, you can use Ally Bank to open a joint account.
What are the Features of an Ally Bank Checking Account?
An Ally Bank checking account has several features that create a better user experience. Here’s what you can expect if you open an account.
Ally Bank customers get 24/7 support for any of their questions. You can contact customer support through email, phone, or live chat.
An Ally Bank checking account has a higher APY than the average financial institution. The online bank also utilizes a daily compounding interest rate which leads to more gains.
All of Ally Bank’s checking accounts are insured by the Federal Deposit Insurance Corporation (FDIC). That means your checking account is insured for up to $250,000.
Savings Buckets let you allocate your funds across several expense categories without opening multiple accounts. You can get a better perspective of how you are spreading your money.
Ally Bank will analyze your spending activity and determine how much funds are “safe to save.” If Ally Bank believes it is safe to move $20 from your checking account to your savings account, the bank will automatically take care of that transfer. You will then get a higher interest rate since Ally Bank savings accounts have higher rates than the bank’s checking accounts.
Zero Hidden Fees
When you open an Ally Bank checking account, you do not have to worry about hidden fees. Ally Bank is upfront about its fees and does not charge a monthly maintenance fee or a minimum balance fee.
Many online banks have vast ATM networks since they do not have physical branches. These ATMs serve as resources to withdraw cash and allow mobile banks to save a lot of money. Ally Bank has a fee-free ATM network of over 43,000 ATMs. If you take money out of an ATM that isn’t part of the network, Ally Bank will reimburse you for up to $10 per billing cycle.
Early Direct Deposit
Early direct deposits allow you auto access every paycheck up to two days early. Get a head start on how you use your money and cover emergency expenses with less stress.
Ally Bank uses several overdraft protection features to help you avoid overdraft fees. These pesky fees range from $30 to $35 and get added to your account if you ever overdraw. While some banks tack on overdraft fees the moment you overdraw your balance, even if it is by $0.01, Ally Bank does its best to make that scenario less likely.
Debit Card Management
You can get a debit card that connects to your Ally Bank checking account. Customers can monitor their debit card activity and freeze their cards at any time. You can also enable or disable your card from specific spending categories. If you do not want to use your debit card for entertainment expenses, you can disable entertainment spending within the Ally Bank mobile app.
Access to Additional Financial Products
Ally Bank is an all-in-one resource for your financial needs. Once you create a checking account with the company, there’s more you can do. You can get various types of loans, such as a home loan or a personal loan, to cover your expenses. Ally Bank has competitive rates for these loans.
Customers can also invest in various assets in an Ally Bank brokerage account. Stocks, bonds, options, ETFs, and crypto are some of the available types of assets. Risk-averse investors can consider money market accounts. You can even create a Roth or traditional individual retirement account through Ally Bank. The company gives consumers many choices, while other online banks stop short with a checking account and maybe a savings account.
Where Does Ally Bank Checking Account Stand Out?
Ally Bank isn’t the only bank in the industry, and the online banking scene is also getting competitive. The basics are expected, so customers look for additional ways that financial institutions like Ally Bank can stand out from the competition.
The Ally Bank checking account stands out for its high-interest rate, fee-free ATM network, and savings buckets. The high-interest rate lets you earn extra cash on the funds you use for everyday purchases. The interest compounds daily, so even if cash doesn’t remain in your checking account for long, it still adds up.
The Savings Buckets can help customers create financial goals and track their progress on multiple goals. Some people prefer to create multiple checking and savings accounts, but others prefer the simplicity of having one checking account. Ally Bank lets you accomplish this.
The bank’s network of 43,000 fee-free ATMs is also a distinct advantage it has over competitors. Some online banks do not have as much coverage, and Ally Bank accommodates if you end up with ATM fees. The bank also has several protocols in place to keep overdraft fees away from your account.
Who Is an Ally Bank Checking Account Best For?
An Ally Bank checking account is best for individuals who want a checking account with a high-interest rate. These individuals may also have low balances on their checking accounts and want to avoid overdraft fees as often as possible.
An Ally Bank checking account gives you access to the parent company’s financial products. You can open high-yield savings accounts, certificates of deposits, and other accounts. Consumers can also take out home loans, personal loans, and other types of debt. You can also get a credit card from Ally Financial.
An Ally Bank checking account can give you access to an all-in-one banking solution. You won’t have to create accounts with multiple financial institutions to get the banking experience you want. You can even invest in stocks, mutual funds, ETFs, bonds, crypto, and other assets with Ally Financial. You can even create an IRA through Ally Bank and save money on taxes while investing. The online bank gives customers many choices and is also affordable. No hidden fees, competitive rates on loans, and high-interest rates on checking and savings accounts make Ally Bank a formidable resource for many consumers.
Should You Open an Ally Bank Checking Account?
An Ally Bank checking account can help you stay on top of your finances. You can categorize your funds to ensure you save up for specific goals. Ally Bank customers receive paychecks up to two days early and get daily compounding interest on their account balances.
Some online banks fall short because they only let you create checking accounts. Some of these same banks also do not have savings accounts, debit cards, loans, and other financial products readily available. Ally Bank has all of these financial products available for its customers. If you want a streamlined banking experience and a checking account with great perks, it may be a good idea to open a checking account with Ally Bank.
How to Get Started with an Ally Bank Checking Account
Opening a checking account with Ally Bank can be a great move for your finances. Luckily, the process is straightforward for anyone who wants to get started. You can visit the Ally Bank website to get started with the account creation process.
Ally Bank will request the following information when you apply:
- Your Social Security Number or Tax Identification Number
- A U.S. residential street address
- Your legal name
- Your date of birth
Ally Bank may request your driver’s license and other ID documents during the application process. You can open an Ally Bank checking account in five minutes or less.