Is Ally Bank a reputable bank?

Ally Bank has been ranked by GOBankingRates as the best online bank for the last several years. It continues this streak by once again being named the Best Online Bank for 2024.

What are the disadvantages of Ally Bank?

Ally Bank has no physical locations, so you cannot do any in-person banking, which makes it not ideal for transactions such as cash deposits.

Yes. Ally Bank deposits are protected by the Federal Deposit Insurance Corp. up to $250,000 per depositor for each qualifying account category.

Ally Bank is a completely online bank, so though it doesn't have any branches, it offers the same rights and protections as a brick-and-mortar bank.

Which is better, Chime or Ally?

Though Chime has a larger ATM network , Ally Bank has a more extensive product lineup.

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Ally Bank Review: Strong Rates and Convenient Online Banking

September 25, 2024

10 min Read

Written by Caitlyn Moorhead

Edited by Elizabeth Constantineau

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

GOBankingRates Score

4.8

SCORE

Quick Take: Ally is an online-only bank that features low fees and high interest rates on its deposit accounts. Because of its low overhead, it can afford the interest on CDs, checking, savings and money market accounts to compound daily, which is a higher yield than other standard accounts that compound monthly. It is a convenient option with solid customer service for those who do not need to do their banking in person and has 75,000 ATMs nationwide.

Checking Account

4.6
Savings Accounts

4.8
CD Accounts

4.8
Money Market Accounts

4.9
Banking Experience

4.9

How did we calculate this?

Pros

Above-average interest rate on savings account
No overdraft fees
No monthly maintenance fees or minimum opening balance requirements
Access to over 75,000 Allpoint ATMs in the U.S.

Cons

No direct cash deposits
No branches available
Withdrawals can take several days
Some APY rates have daily minimum balance requirements

Ally Bank Overview

Ally Bank, Member FDIC, is an online-only financial institution that considers itself an alternative to traditional banks. What it saves on overhead it passes to its customers by offering high-interest rates and low to no fees. GOBankingRates has ranked it among the Best Banks of 2024 in several categories including Best Online Banks, Best CD Accounts and Best Money Market Accounts.

Ally Bank: Key Features

Ally Bank earned its high ranking through many of its financial products and bank accounts. The following categories were used to assess what makes Ally Bank one of the Best Online Banks of 2024.

Ally Bank Checking Account

The Ally Bank Spending Account is much less restrictive than its savings and money market offerings. Here are some key takeaways about Ally’s checking option:

It’s a checking account that earns interest which is compounded daily.
There are no monthly maintenance fees, minimum opening deposit or minimum balance requirements.
Free standard checks and a debit card come with the account.
Customers also have access to mobile check deposits, as well as the Allpoint ATM network.
The APY for the Spending Account is for a minimum daily balance of less than $15,000.
On the downside, Ally doesn’t have physical branches, so it’s not the best option if you prefer in-person service or need to make a lot of cash deposits.

Ally Bank Savings Account

A high APY and lack of monthly maintenance fees make Ally’s online savings account one of the industry’s better options. If you have been looking for a high-yield savings account, here are some features to consider:

With the account’s Smart Savings tools, customers can use buckets to organize their money and visualize what they’re saving for, set up boosters to optimize and maximize savings and make changes as their priorities change.
Savings account customers can expect no minimum deposit or balance requirements, no monthly maintenance fees and free cashier’s checks.
Interest is compounded daily. The APY on savings deposits is on all balance tiers.

Ally Bank CD Accounts

Ally offers various rates and terms for its certificates of deposit that range from three months to five years, depending on which CD you choose. Some CDs can be easily liquidated, whereas you can earn higher interest with more standard options. GOBankingRates has ranked Ally’s CD rates and offerings among the Best CD Accounts of 2024 and here’s why:

Interest on all CDs is compounded daily, and you can renew the accounts when they mature.
With Ally’s 10-day best-rate guarantee, you can get the best rate for your balance and term if you fund your CD within 10 days of opening and the rate rises during that period.
For high-yield CDs, terms range from three months to five years. The Raise Your Rate CD comes in two- and four-year terms, with an option to increase the rate once during the two-year term and twice during the four-year term.
Ally also offers a No Penalty CD at an 11-month term which means you can avoid early withdrawal penalties.
Complete withdrawal of funds is available after the first six days following the date you funded your CD, and you can keep the earned interest.

Ally Bank Money Market Account

Ally Bank’s money market account works like a combination savings and checking account, with high interest rates like the former and spending flexibility like the latter. GOBankingRates has ranked it among the Best Money Market Accounts of 2024 and here are some reasons why:

It features an APY of on all balance tiers and offers instant access to cash via ATMs.
As with the checking and savings accounts, Ally’s money market account has no monthly fees, no minimum deposit or balance requirements and interest that is compounded daily.
Customers get access to the Allpoint ATM network, as well as a debit card and free standard checks.
Just keep in mind that the account is limited to ten transfers and withdrawals per statement cycle. If you go over the limit more than once, you may have your account closed.

Banking Experience at Ally Bank

Ally’s overall customer experience is highly positive. If you wondered how Ally Bank earned its GOBankingRates score, here’s a quick breakdown:

Interest rates: Ally earned high marks for its competitive annual percentage yields, which rank among the best in the business.
Customer service: Ally has made a name for itself in the banking industry for its attention to customer service, and that’s reflected in how it stacks up against the competition. Ally ranked first among banks surveyed by GOBankingRates in two important categories: service via live chat with a person and 24/7 phone customer service.
Services and accessibility: Ally Bank also scores well in terms of digital accessibility. It ranked first among banks surveyed by GOBankingRates in both the quality of its mobile app and remote check deposits. Its app got a rating of 4.7 on the App Store, though is a bit lower overall with 2.3 on Google Play.
Fees: You’ll never pay fees for monthly maintenance, domestic or international incoming wires, cashier’s checks, standard or expedited ACH transfers or standard checks for interest checking and money market accounts. Outgoing domestic wires carry a $20 fee, and if you need expedited delivery for a debit card or check, you will face a fee of $15.

How Does Ally Bank Compare?

All banks have their strengths. Here’s a quick look at Ally’s strong points as compared to its competitors.

Ally Bank vs. Capital One

Capital One has the advantage of in-branch services, whereas Ally is an online-only bank. Ally does have an edge in terms of interest rates, offering up to APY on its checking account vs. the APY* offered by Capital One.

Ally Bank vs. Discover

One of the big advantages Discover® Bank, Member FDIC, has over Ally is its credit card line. At Discover, you can keep all your accounts at one institution. Ally offers higher yields and both self-directed and automated investing — something not available at Discover.

Ally Bank vs. Chime

Ally and Chime®** are both digital-only banking options that offer a high APY for savings accounts¹. Ally’s product lineup is much more extensive than Chime’s, but Chime’s ATM network is bigger, with access to more than 50,000 fee-free² ATMs³.

Final Take

Most banking today is done online, and Ally Bank offers a 21st-century banking experience that includes a full suite of products and services. GOBankingRates has ranked Ally Bank among the Best CD Accounts, Best Money Market Accounts and Best Online Banks for 2024. Ally Bank is best for those seeking high-interest rates and who don’t want a minimum balance requirement to open a checking or savings account. It’s easy to open a new account with Ally.

Even if an online-only bank isn’t entirely appealing to traditional bank customers, some might be swayed by Ally’s competitive APY rates and 24/7 customer service.

Compare to Other Banks

Ally Bank FAQ

Here are the answers to some of the most common questions about Ally Bank and its products and services.

Is Ally Bank a reputable bank?
- Ally Bank has been ranked by GOBankingRates as the best online bank for the last several years. It continues this streak by once again being named the Best Online Bank for 2024.
What are the disadvantages of Ally Bank?
- Ally Bank has no physical locations, so you cannot do any in-person banking, which makes it not ideal for transactions such as cash deposits.
Can I trust Ally?
- Yes. Ally Bank deposits are protected by the Federal Deposit Insurance Corp. up to $250,000 per depositor for each qualifying account category.
Is Ally Bank a bank?
- Ally Bank is a completely online bank, so though it doesn't have any branches, it offers the same rights and protections as a brick-and-mortar bank.
Which is better, Chime or Ally?
- Though Chime has a larger ATM network, Ally Bank has a more extensive product lineup.

John Csiszar and Cynthia Measom contributed to the reporting for this article.

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Sept. 25, 2024.

*Capital One interest rates accurate as of Sept. 25, 2024. See website for all current rates.

**Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank, N.A. or Stride Bank, N.A.

¹The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of Sept. 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.

²There’s no fee for the Chime Savings Account. Cash withdrawal and Third-party fees may apply to Chime Checking Accounts. You must have a Chime Checking Account to open a Chime Savings Account.

³Out-of-network ATM withdrawal and over the counter advance fees may apply. See here for details.

To determine rankings for the Best CD Accounts, GOBankingRates looked at the following factors from all banks (excluding neobanks): (1) total assets as sourced from the FDIC; (2) number of branch locations as sourced from the FDIC; (3) minimum deposit to open an account; (4) 12-month CD APY; (5) 60-month CD APY; and (6) the average mobile app rating between the Google Play (Android) and Apple app stores. All factors were then scored and combined, with the lowest score being the best. Factors (1) and (2) were weighted 0.5 times, factor (3) was weighted 2 times, and factors (4) and (5) were weighted 4 times.

To determine rankings for the Best Money Market Accounts, GOBankingRates looked at the following factors from all banks (excluding neobanks): (1) total assets as sourced from the FDIC; (2) number of branch locations as sourced from the FDIC; (3) minimum deposit to open an account; (4) APY on the money market account; (5) the minimum balance needed to earn the APY; (6) monthly money market fee ratio (percentage based on the minimum to avoid the fee compared to the monthly fee itself); and (7) the average mobile app rating between the Google Play (Android) and Apple app stores. All factors were then scored and combined, with the lowest score being the best. Factors (1) and (2) were weighted 0.5 times, and factor (4) was weighted 4 times.

To determine rankings for the Best Online Banks, GOBankingRates looked at the following factors across exclusively online banks: (1) total assets as sourced from the FDIC; (2) monthly checking fee ratio (percentage based on the minimum to avoid the fee compared to the monthly fee itself); (3) savings APY; (4) 1-year CD APY; (5) Bauer rating (out of 5 stars); (6) products/services offered (auto loans, mortgage loans, credit cards, investment services and insurance); and (7) the average mobile app rating between the Google Play (Android) and Apple app stores. Factors (1) and (2) were weighted 0.5 times, and factors (3) and (7) were weighted 2 times. For all savings and checking account data, only the basic accounts/products offered at each institution were analyzed.