Ben Todd | Jun 3, 2017 | 2
Ally Bank Review
Ally Bank is popular because they offer good rates and serviceable savings and standards. Their customer services are terrible, their tools are reasonably innovative, and their user interface is good. While conducting our Ally Bank review, we found that the best feature is their interest-bearing checking account, closely followed by their excellent savings rates.
There are too few interest-bearing checking accounts in this country and we applaud online banks that offer such perks. Ally Bank has fewer features, options and opportunities than bigger high street banks have. Get your mortgages, auto loans, financing and arranged overdrafts with other banks. Our Ally Bank review finds that the bank is rather good when compared to other online banks if you are looking to store and save money.
Ally Bank review – Benefits And Features
- Interest bearing checking accounts
- High-yield online savings accounts
- Savings account interest is compounded daily
- An “Early Withdrawal” CD with no penalties for early withdrawals
- A “Raise Your Rate” CD with a variable APY rate
- Auto-renew for CDs ten days after maturity
- Link your account to another to avoid overdraft fees
- Transparent fees listed on a PDF for all to see
Perks And Downsides
[+] There are no maintenance fees for having a basic checking account
[+] You do not have to maintain a minimum balance with their standard account
[+] They have over 43,000 free ATMs in their Ally Bank network
[+] You may have a free savings account that has a 1% APY
[+] It is easy to get an account, even with a below-average credit rating
[-] They only give you six free outbound transfers per month with their savings accounts
[-] You are unable to deposit cash with Ally Bank
[-] A $10 fee for withdrawing more than six times per month from your savings account
[-] Extensive account research fee is $25 per hour
[-] Customer service and account administrators are poorly rated
They have an interest-bearing checking account where you may earn 0.1% on your balance if it is under $15,000, and more if you keep higher amounts in your checking account. Our Ally Bank review found that they have plenty of ATMs in their network, so getting your money out is easy enough. Plus, their fees are not high.
Ally offers high interest rates and very good online savings accounts with high yields. They compound interest daily. Compounded interest means you earn money on your savings and the interest your savings generate. The fact it is generated daily means you don’t have to keep your money in there for a month, six months or a year before earning interest. They offer better interest rates for people who leave higher amounts in their savings account.
Certificates Of Deposit
Ally Bank offers three types of certificate of deposit. Their standard CD has a good rate, but they make you wait if you wish to withdraw the money. Their “Raise Your Rate” CD has a flexible APY interest rate where you may opt for a higher interest rate that matches their current CD interest rates. That CD also makes you wait to withdraw your money, unless you are willing to pay an early withdrawal fee. You may sign up for their third type of CD that allows you to withdraw your money quickly without a penalty, but the interest rate isn’t as sexy. There are no minimum deposit requirements.
Ally Bank Review – Biggest Selling Point
Their interest bearing checking account is probably one of the best selling points the company has to offer. It sounds silly, but the people of this country would be a lot richer if everybody earned money on the funds stored in their checking accounts. There are over 240,000,000 adults living in the USA. If they were receiving just $0.05 interest per month on their checking accounts, there would be one hundred forty-four million dollars ($144,000,000) extra floating around in the consumer economy.
Even if you hate the bank itself, you should sign up for an interest-bearing checking account because the money resting in your current/checking account is only sitting there when it could be earning interest. Another selling point is their savings account with has a 1% APY.
Ally Bank Review – Fees And Charges
There is a $10 charge if you transfer money out of your savings account more than six times in a month. Every transfer after six will cost you $10. That includes if you write a check that it is paid out of your savings account.
There is a $25 overdraft fee that is applied daily, but that fee applies for if you overdraw by $1 the same as if you overdraw by $1000.
Account research costs are $25 per hour. That fee is paid if you request that your transactions histories be extensively researched. They have to notify you in advance of charging the fee so you have the chance to refuse.
- Stop payment cost you $15 per request
- Returned deposit items cost you $7.50 per item
- Overdraft item paid is $25
- Overdraft item returned is $25
- Domestic outgoing wires are $20 each
- A rushed/express delivery debit card costs $15 per card sent
- Overnight bill payment delivered by mail is $14.95 per payment
- Same-day bill pay by electronic delivery is $9.95 per payment
- Currency conversions cost 1% of the amount converted
What Do They Offer Free?
Monthly maintenance, account funding/deposits, cashiers checks and incoming wires are free. The same is true if you fund your account with a debit card, direct deposit, checks and prepaid envelopes. Debit cards are also free.
You do not have to pay an ATM fee if you use an AllPoint network ATM. They will also reimburse you for up to $10 per statement cycle if you use another type of ATM.
- Overdraft transfers cost $0
- Deposits of checks over the Internet cost $0
- Bill Pay (direct debits/ ACH) costs $0
- Install and access their mobile app and pay $0
- PopMoney transactions cost $0
Whom Should Take Note Of This Ally Bank Review?
People who keep their money in their accounts for extended amounts of time before paying bills should really consider a checking and a savings account. If you are not sure what you are going to do with the money in your account from one month to the next, then you should consider storing your cash in Ally Bank’s interest-bearing checking account or one of their savings account. You may only earn pennies per month, but it is better in your pockets than the banks.
User Comments And Reviews
If you are looking to save money, then Ally Bank is a great choice. If you conduct many bank transactions each month, and if you are look for top-notch technology, then other banks beat Ally Bank out of sight. An Ally Bank account works best as your number two account where you stash your cash.
[+] The customer service is bad, but they list the current waiting time for phone calls, and you can sometimes get a good response if you email rather than call.
[+] Some people like the fact they can deposit in their savings account an unlimited amount of times each month, even if it is just depositing a few cents per transaction
[+] The account linking function is a fan favorite because it allows people to avoid overdraft fees.
[+] They offer overdraft protection automatically, which means your checks or direct debit payments will not bounce, but it does mean that you will overdraw if you don’t have the funds.
[+] Some people like the fact that $10 worth of ATM fees will be reimbursed every month.
[-] Their customer service is probably the worst in the industry. Their staff are poorly trained, feckless, and bad when administrating user accounts.
[-] The customer support will hang up on you if you present them with a tricky problem that the phone operator doesn’t know how to deal with.
[-] Setting up an account can be time consuming and very frustrating, especially since the administrators take so long to push the paperwork through.
[-] Many people seem to have trouble with the auto/car/vehicle services offered by Ally Bank. It may be worth looking at a few reviews before getting an auto loan.
[-] They may refuse to give you an account because they cannot verify your information. They will not tell you which information caused the problem or why.
Conclusion – Ally Bank Review
Our Ally Bank review finds that they offer great savings options, and also that their customer service is terrible. Most negative reviews seem to be about the auto side of their business. Most other negative reviews are about their awful customer service. Ally bank is a good bank and you can trust them with your money, but as I mentioned earlier, you should use them as your second bank rather than your main bank.
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Ally Bank’s banking services are not reliable enough for moderate-to-heavy bank users. The bulk of your banking business (where you conduct multiple transactions per month) should be conducted with another bank. Keep Ally Bank in mind for your rainy day savings or for a place to store money you haven’t allocated to your bills yet.