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Ally Bank Changing ATM and Overdraft Policies


Ally Bank is just starting to notify its customers of some changes that will affect their checking, money market and savings accounts. The changes will be effective on 8/15/2015. These changes will probably have no effect on most savers.

The first change involves ATMs. Ally Bank is eliminating unlimited ATM fee rebates. Ally Bank will reimburse up to $10 per statement cycle in ATM fees other banks charge when customers use their Ally Bank debit card at any ATM machine nationwide. Ally Bank will continue to not charge its customers ATM fees.

If you use ATMs many times a month, you won’t have to worry. Ally Bank has joined the Allpoint network to allow customers no fee access to more than 43,000 ATMS in the U.S. Ally will include domestic Allpoint ATM locations on its ATM and Cash Locator app by the end of August, 2015.

It should be noted that the policy doesn’t change for ATM use overseas. Ally Bank only reimburses fees charged at other ATMs if the ATM you use is in the US. If you use an ATM overseas, you may be charged a fee of up to 1% of the transaction amount for the currency conversion and/or cross border transaction. Additionally, the ATM owner may charge you a fee.

The second change involves overdraft fees. Ally Bank is increasing the NSF fee from $9 to $25. Ally Bank will continue to limit the NSF fee to a maximum of one per day.

Ally Bank offers free overdraft transfer service and balance alerts to help customers avoid fees altogether.

My Take

These type of change is probably good for savers since Ally Bank will be spending less to accommodate the heavy ATM users or those who overdraft their accounts. The unlimited ATM fee rebates can easily be abused. This My Money Blog post showed that Ally Bank reimbursed all of the fees charged at expensive ATMs in Las Vegas casinos. I could see Ally Bank reimbursing some of its customers hundreds of dollars using these casino ATMs. I rather see Ally Bank using that money to pay higher deposit rates, and that’s also the case for overdraft fees. I think the vast majority of savers have never paid an overdraft fee.

If you are a heavy ATM user or if you do occasionally overdraft your accounts, you’ll find Ally Bank will still be very competitive as compared to other internet banks. The largest one, Capital One 360 (formerly ING Direct), doesn’t provide any ATM fee rebates. To avoid fees, you have to rely only on the Allpoint network or its own ATMs.

Capital One 360’s policy on overdrafts may be considered to be a little better than Ally Bank’s since it doesn’t charge a fee for overdrafts. You only pay interest on the amount you borrow. However, it’s easy to avoid the Ally Bank overdraft fee by setting up free overdraft transfer service and balance alerts. Just remember that all savings and money market accounts limit the number of withdrawals to six per statement period. Ally Bank charges $10 for each withdrawal when the customers goes over this limit (ATM withdrawals are unlimited).

Related Pages: Ally Bank
  |     |   Comment #1
Competitive with the Navy Federal Credit Union reimbursement rate for ATM fees which is also $10. The overdraft fee is $20 at Navy Federal CU thus Ally Bank is $5 more. Neither of these changes affect me since I'm not a heavy ATM user and don't run overdrafts. Ken is correct, I'd rather see higher yields on their deposit accounts.
  |     |   Comment #2
If you think this will lead to higher deposit interest rates, then you must be on some other planet besides Earth.  Ally will just pocket the extra $, just as it always has!
  |     |   Comment #4
"Beam me up, Scotty".  Actually we will never know. If Ally at some future date raises it's deposit rates then we can either attribute it to these changes or some other factor.
  |     |   Comment #3
ATM fees? People still use cash? :)
  |     |   Comment #5
Thumbs up.  I enjoyed your post.  It made me smile because we agree.  I've had the same bills in my wallet for the better part of a year . . . not different bills of the same denomination . . . the exact same pieces of paper money.  Who the heck are these people withdrawing cash from ATM machines?  Some people are never gonna escape the twentieth century!  Cash . . . . . . . . in 2015 . . . . . . . . . is trash!!!!!!!!  
  |     |   Comment #6
Casinos my friend 
  |     |   Comment #7
I'll collect as much of that "trash" as I can. By the way, economists estimate the size of the underground economy at somewhere between 8 percent and 14 percent of total GDP, which could amount to as much as $2 trillion worth of economic activity. All in cash transactions.
  |     |   Comment #9
Apparently you've never gone to a local farmers market or small food co-op to get fresh from the farm food.  Many small vendors like that don't take cards, they can't afford the interchange fees.  I go to an ATM on a regular basis because I buiy a lot of fresh/local food from small producers.

Everytime there is a discussion of ATM's, someone always claims cash is useless, cash is out of date, blah, blah.  People still use cash and will for many years to come.
  |     |   Comment #17
I go to cash only places so often I (presumptuously!) can't imagine how sheltered a person would have to be not to end up at one of them at least once or twice a month. You don't support local businesses and free them from card fees, you don't eat at hole-in-the-walls tucked away anywhere, no street vendors or farmers' markets... whoh, who are you, haha.
  |     |   Comment #20
Don't forget office pools, local ice cream parlor, fairs, dairy farms, businesses that have cash prices like gas..
  |     |   Comment #14
Yes, Ally was my free access to cash at the casino
  |     |   Comment #19
You'll have to restrict your free access to cash at the casino to 2 ATM withdrawals per month with your Ally debit card, if the ATM charges $4.99 each time.
  |     |   Comment #8
i spend very little in cash. drivers license renewel in a different county every 4 years.
nephews hs basketball game.
been that way for 15+ years.
  |     |   Comment #10
It seems, to me, that $10 is a little on the light side.  That doesn't even allow for 4 withdrawals/month (once/week), if you consider that most banks charge $3 a pop.  I think $15/month would have been a more reasonable cap.
  |     |   Comment #11
Then utilize an ATM which is part of the Allpoint network. With more than 43,000 ATMS in the U.S. you should have no problem finding one convenient to you.
  |     |   Comment #12
Luv reading about those using ATMs that have a straight road/access to the underlying bank/cu account....how do you sleep at night given, e.g. what happened in the US yesterday?  Pray and have a lot money (elsewhere)?
  |     |   Comment #13
I joined an online bank so I wouldn't have to check which ATM network that I'm in.  Might as well go back to my local bank.
  |     |   Comment #16
Link is 2014
  |     |   Comment #21
That link is old, and needs to be corrected. Ally still good because of the high interest rate for "liquid" money. 
  |     |   Comment #18
Thanks Ally, I'll make sure to Utilize a Convenient Allpoint Network ATM! #AllyBank
  |     |   Comment #22
Actually there not as convenient as Ally would have you think, especially in many urban areas. It is somewhat ridiculous for an online bank to be so stingy with ATM reimbursements. Guess I'll be going back to a retail bank now.
  |     |   Comment #23
I love ALLY!!!! 

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