Is Ally a Good Bank?

If you’re considering banking with Ally, keep in mind that it’s an online bank. While you won’t have branch access, Ally has some of the highest APYs out here, low-fee deposit accounts and tons of financing options.

Is Ally legitimate?

Yes, Ally is a legitimate bank. It is FDIC-insured and headquartered in Michigan. Ally was formerly General Motors Acceptance Corporation (GMAC) and rebranded as Ally Financial in 2009.

Like other traditional financial institutions, Ally’s deposit accounts are protected up to $250,000 per depositor. In the unlikely event of a bank failure, your funds in Ally deposit accounts are protected up to that amount.

Ally’s bank accounts

It’s fairly easy for us to say Ally is a good bank. We frequently feature Ally’s deposit accounts on our best lists, including our best savings accounts and best CD offerings.

Across Ally’s account and product offerings, most have no monthly fees and offer simple online applications, while customers frequently praise the bank for its high savings rates.

Ally offers one checking account and one savings account. In addition to those two standard accounts, Ally offers CDs, a money market account, investing services and various loan options. However, Ally doesn’t support cash deposits.

Checking

The Spending Account is Ally’s checking account. It has no monthly maintenance fees, overdraft fees or opening deposit requirements. Perks of the Spending Account include:

• Earn up to 0.25% APY on your balance
• Envelope budgeting with “buckets”
• Optional overdraft services Transfer Service and CoverDraft
• Free checks
• Free incoming wires
• Early direct deposit
• Large fee-free ATM network with Allpoint and ATM reimbursements

Savings

The Ally Savings account offers up to 4% APY. There are no monthly fees or balance requirements, and you’ll have access to the digital envelope budgeting tool called “buckets,” which allows you to sort your savings goals.

The account also comes with optional round-ups and Surprise Savings. The round-up feature automatically rounds up Spending Account debit card purchases to the nearest dollar and deposits the difference into your savings. The Surprise Savings feature analyzes your linked checking accounts for safe-to-save funds and automatically transfers them to your savings.

Ally’s CD offerings are also fantastic, with one of the best offerings being the 4.3% APY on a 6-month term. There are three CDs to choose from, each with various terms and no minimum opening deposits. Plus, its loyalty program offers rate increases when you renew CDs. Overall, the rates are very competitive, and there’s nothing negative to say about the banks’ CD offerings.

Other products and services

Aside from typical bank accounts, Ally also offers these products and services:

• Ally Money Market. Offers a very high 4% APY on all balances, a debit card and checkwriting privileges. The perks are nearly identical to the Ally Spending Account: no monthly maintenance fees, no overdraft fees, free checks, no fees for receiving wire transfers, no opening deposit requirement and unlimited ATM withdrawals.
• Credit cards. Earn unlimited cashback with the Ally Unlimited Cash Back card, and there’s also a card specifically for nurses and educators.
• Investing. Check out robo portfolios, investing advice, IRAs, stocks and exchange-traded funds (ETFs), bonds, mutual funds and much more.
• Mortgages. Offers home loans, as well as various resources on managing a home loan, first-time home buyer assistance, mortgage assistance and jumbo home loans.
• Vehicle financing. Take out a car loan, refinance or look into Ally’s lease buyouts. Ally can also help you find a dealership and offers vehicle protection benefits.

Ally Bank in the news

In September 2024, it was reported that Ally had a security breach in April 2024, which potentially affected billions of customers and left them exposed to identity theft, as reported by Bloomberg.⁽¹⁾

A complaint filed in September alleges that Ally failed to encrypt or redact customer personal information, and there is a proposed class action suit. It has also been reported that Ally has not sent any notifications to its current or former customers, at the time of writing.

The complaint accuses Ally of negligence and breach of implied contract, with the suit seeking monetary and injunctive relief and would require Ally to update its security practices.

Customer feedback and reviews

Ally Bank, listed as Ally Financial on review platforms, has mixed reviews. Ally holds an A rating with the Better Business Bureau (BBB), indicating that the bank consistently responds to customer complaints and hasn’t had recent issues with regulators. On the whole, Ally has significantly fewer complaints filed with the BBB compared to other banks, just under 550 in the last few years. Most online or large banks have thousands of BBB complaints, so Ally performs really well in that area.

Happy customers report having no issues with Ally, praising the friendly customer support, the high APYs on savings and the limited fees.

Redditors also express skepticism about how Ally can offer such high interest rates on savings accounts compared to other institutions, but other users explain how Ally can save money by not having physical branches. It’s common for online banks to offer significantly higher savings rates than traditional institutions due to the lack of maintenance costs.

Negative feedback on Trustpilot, the BBB and Reddit follow similar themes. A common complaint is that deposit times can be a bit slow, depending on how large the deposit is, but that’s pretty typical. Other negative reviews mention difficulties contacting a customer representative, frozen deposits, attempts at resolving fraudulent charges and wire transfers or deposits not going through. But overall, these complaints are typical for financial institutions.

Security measures

Ally Bank guarantees you will not be liable for unauthorized transactions, provided you report them to the bank. Also, Ally customers can download and install Webroot SecureAnywhere for free on up to three devices.

• Free anti-virus and anti-malware software
• 2-step authentication, such as a security question
• Transport Layer Security (TLS) Encryption
• Earn a Security Badge by testing your knowledge and learning to protect your information
• 24/7 customer support

Ally fees

Ally’s accounts don’t have monthly maintenance fees, but watch out for some of these miscellaneous fees.

Compare with leading bank accounts

Up to 4.20% APY

Go to site on SoFi's secure site

• 0.50% APY on checking balance
• Up to 4.20% APY on savings
• $0 account or overdraft fees
• Get up to a $300 bonus with direct deposits of $5,000 or more

Disclaimer

New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus when they set up Direct Deposit of at least $1,000 during the Direct Deposit Bonus Period. Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 12/31/24. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.
SoFi members with Direct Deposit can earn 4.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.20% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances(including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/31/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.

SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits.Interest rates are variable and subject to change at any time. These rates are current as of 10/31/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet

Our account fee policy is subject to change at any time.

SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at SoFi.com/banking/fdic/terms
See list of participating banks at SoFi.com/banking/fdic/receivingbanks

We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.

Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

Up to 2% cashback

Go to site on Upgrade's secure site

• Up to 2% cashback
• $0 monthly & overdraft fees
• Get paid up to 2 days early with qualifying direct deposit

Disclaimer

Rewards Checking Plus customers who set up monthly direct deposits of $1,000 or more earn 2% cash back on common everyday expenses at convenience stores, drugstores, restaurants and bars - including deliveries - and gas stations, as well as recurring payments on utilities and monthly subscriptions including phone, cable, TV and other streaming services, and 1% cash back on all other debit card purchases. 2% cash back is limited to $500 in rewards per calendar year; after $500, customers earn 1% cash back on all eligible debit card purchases for the remainder of the year. Rewards Checking Plus accounts with less than $1,000 in monthly direct deposits 60 days after account opening will earn 1% cash back on common everyday expenses and 0.50% cash back on all other eligible debit card purchases. Some limitations apply. Please refer to the applicable Upgrade Visa® Debit Card Agreement and Disclosures for more information.

Upgrade is a financial technology company, not a bank.  Rewards Checking services provided by Cross River Bank, Member FDIC.  Upgrade Visa ® Debit Cards issued by Cross River Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc.

Earn more with combined checking and savings

Go to site on Axos Bank's secure site

• $0 monthly fee
• Earn up to 4.86% APY on savings
• Earn up to 0.51% APY on checking
• Get paid up to 2 days early
• Access expanded FDIC Insurance for up to $250 million

Bottom line

All in all, we can safely say that Ally is a solid online bank that offers low-fee deposit accounts, high APYs on savings accounts and various lending services. But if it’s still not just right for you, see how Ally compares to other top banks.

• Ally vs. Chime
• SoFi® vs. Ally
• SoFi vs. Chime

Frequently asked questions

Does Ally work with Zelle?

Yes, Ally Bank works with Zelle. Learn more about Zelle here.

Can I apply for a personal loan for Ally?

No, Ally doesn’t offer personal loans anymore. Existing Ally Lending personal loans are now through Synchrony, which also offers high-yield savings and other banking services.

Does Ally accept cash deposits?

No, Ally Bank has no way to accept cash deposits. Ally doesn’t have physical branches, and at this time, it doesn’t support ATM cash deposits, either.

What bank is behind Ally?

Ally is an FDIC-insured bank on its own. Unlike many online banking options, Ally isn’t a fintech company and doesn’t need a bank partner behind it to provide banking services or FDIC insurance.

To make sure you get accurate and helpful information, this guide has been edited by Holly Jennings as part of our fact-checking process.

Written by

Bethany Hickey

Editor, Banking

Bethany Hickey is the banking editor and personal finance expert at Finder, specializing in banking, lending, insurance, and crypto. Bethany’s expertise in personal finance has garnered recognition from esteemed media outlets, such as Nasdaq, MSN, Yahoo Finance, GOBankingRates, SuperMoney, AOL and Newsweek. Her articles offer practical financial strategies to Americans, empowering them to make decisions that meet their financial goals. Her past work includes articles on generational spending and saving habits, lending, budgeting and managing debt. Before joining Finder, she was a content manager where she wrote hundreds of articles and news pieces on auto financing and credit repair for CarsDirect, Auto Credit Express and The Car Connection, among others. Bethany holds a BA in English from the University of Michigan-Flint, and was poetry editor for the university’s Qua Literary and Fine Arts Magazine. See full bio

Bethany's expertise

Bethany has written 435 Finder guides across topics including:

• Personal finance
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