Written by Ali Cybulski, Published on 6/14/2024
Ally Bank, an online-only institution, offers an array of deposit and mortgage products and services. The Utah-based bank provides checking accounts, high-yield savings accounts, money market accounts and certificates of deposit (CDs). The subsidiary of digital financial services company Ally Financial Inc. also issues credit cards and auto loans and includes investment products in its lineup.
Ally’s Spending Account is its FDIC-insured checking account with no monthly maintenance fees and no overdraft fees. All accounts earn interest, but accounts with larger balances may earn a higher rate. You’ll get access to more than 55,000 fee-free Allpoint ATMs and reimbursement of up to $10 per statement cycle for fees charged at other ATMs nationwide.
The Ally Bank Savings Account offers an annual percentage yield (APY) of 4.20%, with no monthly maintenance fees or minimum balance requirements. The money market account also earns an APY of 4.20%, with no monthly fees or minimum balance requirements. Rates are accurate as of June 6, 2024.
Ally has a selection of three CDs. The high-yield CD comes in terms from three months to five years and pays an APY of 4.25%. The 11-month No Penalty CD has an APY of 4.00% and no minimum deposit to open, plus you can withdraw your full balance and interest any time after the first six days of funding the CD.
The Raise Your Rate CD comes in two- or four-year terms, with an APY of 3.75% and no minimum opening deposit required. If the bank’s rate goes up for your term and balance, you will have the opportunity to raise your rate once for the two-year CD or twice for the four-year CD.
Note that you can’t make cash deposits into checking, savings or money market accounts, but the bank allows remote check deposits, direct deposits, deposits by mail, online transfers and wire transfers.
You can access live support 24/7 via chat, email or phone at 877-247-2559.
Ally Bank pros and cons
Pros:
• Competitive rates on deposit accounts
• Large fee-free network of ATMs
• No monthly maintenance or overdraft fees on deposit accounts
Cons:
• No branch locations
• No cash deposits
• Limit of 10 withdrawals and transfers per statement cycle from your savings account; if you exceed the limit more than occasionally, the bank will close your account
Actually An Ally
They live up to their name. Features on checking accounts like $100 overdraft protection, ATM fee reimbursement, and free checks make it worth it. The months after I filed bankruptcy I ran out of money a lot. Ally never punished me for it with fees. Recommended.
Ally Rendered My Active Account Dormant Without Warning
Received snail mail from Ally today dated 10 days ago. Friendly advice that “they hadn’t heard from me in a while”, cited five ways to stay in touch, including logging into ally.com, which I already do at least monthly. No mention of rendering my account dormant or otherwise locking it. I haven’t moved money into or out of the account in probably over a year. I immediately called Ally per the number listed as another of the 5 friendly ways. Call was quickly answered by a knowledgeable young lady, sounded like the call hadn’t departed the continent for a foreign call center. Ran through ID confirmation protocol, then discovered a couple of frustrating contradictions to the contents of the snail mail. Ally’s computer is set up to dormant the account if money doesn’t move in and out of the account at intervals, the length of which the agent could not discover. Logging into the website isn’t adequate contact, unlike all of my other financial institutions. And by the time their snail mail reached my mailbox, the account was dormant and locked. I can log in, see my balance and confirm my linked account is still linked, but no commands are allowed. Message center: nothing, no warning, no notification of status change. So, from my standpoint, Ally has frozen my account, without warning, for nothing. They email me promos all the time, didn’t email their actual criteria to keep account active. The agent predicts two to three business days for the back office to free the dollars. Not happy in the meantime.
Addendum: Account reactivated after one business day, controls seem to work. Received a thoughtful-toned on-website message apologizing and explaining that intended protocols didn't happen, surprise dormancy was unintended. Apology accepted.
Just The Basics, Fine. Customer Service, Not So Much
I WAS a long-time customer because I used basic services and rates were always pretty good. But here’s what happens when you want to use something more than checking and saving. I initiated a routine wire transfer for $8k a day before it needed to be sent. This was for a legitimate service rendered to me by a contractor because I am remodeling my kitchen. Ally demands a “verification,” and sent me an email telling me to call a number to do this. I tried for three hours to get connected to a human being. No one answered the phone at the number in the email. I finally called the general "customer service" line and that person managed to get through to the correct dept - after both of us were on hold for close to another hour - and this person grilled me on why I was transferring the money, how long did I know the person I was sending money to, had I met this person, what was the color of his hair,etc. It seems I need Ally's permission to remodel my kitchen, and I was told I needed to provide a list of the tradesmen involved if I wanted to send payments via wire. (I'm wondering if Ally will send me a list of credentialed electricians in my area , since I need some rewiring done, and the bank seems to gather this information from its customers?) The point is, Ally first of all doesn't have the staff required to provide even reasonably prompt service, and then apparently needs to approve how you spend your own money - and will charge you $20 for the privilege. In the course of trying to effect a simple wire transfer, I was transferred to several people and then disconnected from them (and they do not call back to continue the call, so you get to start all over again with someone else and answer the same “verification” questions that you just answered 10 minutes before). And you will be put on hold while they “check the account” and you can listen to their Muzak for another half-hour or so. And I was told by the final agent that this process will happen every time I want to do a wire transaction – and to prepare myself for long holds and inferior service. That’s Ally’s commitment to “best banking.” So, if you want competitive rates for your deposit accounts, consider Ally. But if you’ll need additional financial services, find another provider. And avoid the anguish of Ally’s “customer service.”
Yikes - Look Elsewhere
Banking 101
Law of Banking Inertia
First, create goodwill with prompt, professional customer service and highly competitive rates on deposits.
Once you are regarded as a leader for rates and service, let the rates and service decline below that of your competitors, and focus on executive salaries instead.
For several years, most people will simply keep their accounts and will not move to the competition.
Law of Banking Momemtum
Eventually, depositers will move their funds to the competition.
When they do, this can happen very quickly, as many depositers will quickly follow outspoken depositers.
You once were a great bank and you blew it.
Data as of Q4 2024
Learn why bank health mattersHealth Grade Components
| Overall | |
|---|---|
| FDIC Certificate # | 57803 |
| Year Established | 2004 |
| Employees | 9683 |
| Primary Regulator | FED |
| Profit Margin | |
|---|---|
| Return on Assets - YTD | 0.79% |
| Return on Equity - YTD | 10.29% |
| Annual Interest Income | $13.13B |
| Assets and Liabilities | ||
|---|---|---|
| Assets | Q4 2024vs Q4 2023 | $181.4B$186.1B |
| Loans | Q4 2024vs Q4 2023 | $132.2B$138B |
| Deposits | Q4 2024vs Q4 2023 | $156.6B$159B |
| Equity Capital | Q4 2024vs Q4 2023 | $13.78B$13.69B |
| Loan Loss Allowance | Q4 2024vs Q4 2023 | $3.72B$3.61B |
| Unbacked Noncurrent Loans | Q4 2024vs Q4 2023 | $1.49B$1.39B |
| Real Estate Owned | Q4 2024vs Q4 2023 | $1,000K$1,000K |