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What Can Happen If You Use Your Ally Checking Account As A Business Account

Monday, September 6, 2010 - 8:18 AMAlly Bank - Details
A Bogleheads member described how Ally Bank closed his checking account when Ally discovered he was using it for his business. In addition, he reported that Ally is deducting all interest paid to date since the account was opened. As one of Bogleheads member replied in that thread, Ally Bank's account disclosure does mention this restriction:
Interest Checking accounts are only available to consumers for personal, family and household purposes. You may not use an Ally checking account that earns interest for business purposes.

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Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,077
1. Monday, September 6, 2010 - 10:49 AM
A Bogleheads member described how Ally Bank closed his checking account when Ally discovered he was using it for his business. In addition, he reported that Ally is deducting all interest paid to date since the account was opened. As one of Bogleheads member replied in that thread, Ally Bank's account disclosure does mention this restriction:
Interest Checking accounts are only available to consumers for personal, family and household purposes. You may not use an Ally checking account that earns interest for business purposes.

Hm, what constitutes business purposes? Does an occasional sale on ebay count? What if those sales happen weekly or more often? What about PayPal transfers? Are they 'monitored' as well? A bit murky if you ask me.
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darkdreamer4udarkdreamer4u174 posts since
Jun 11, 2010
Rep Points: 632
2. Monday, September 6, 2010 - 12:33 PM
Yes, there are many transactions that would be hard to tell if its a personal or business transaction. One way that a bank could tell if the account is being used as a business account is if you deposit a check that's paid to a business name instead of to your personal name.
2
Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,077
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