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Money Magazine recently named Ally Bank the "best online bank" for its excellent customer service, low fees, and easy-to-use platform. If you’re looking for a top online bank, Ally Bank should be at the top of your list.
Let’s face it, who really enjoys making just 0.15% on their savings account? Interest rates have been low for a while, so finding the best rate for your savings is crucial. One of the solid options out there is Ally Bank. Here’s why Ally might be the best online bank for you.
A Brief History and Features
Ally Bank started as GMAC Bank. After GM’s PR issues, the bank rebranded to Ally. Today, Ally Bank offers some of the highest-yield accounts around, all backed by the FDIC. This means your money is insured up to $250,000 by the federal government. You can even get more coverage—up to about 1.5 million dollars—through additional accounts for your spouse or child.
Opening an Account with Ally
Opening an account with Ally Bank is much like any other bank, minus the face-to-face interaction. They do use your FICO score to determine eligibility, which could be a bit stricter than some other banks. After your initial account is set up, opening subsequent accounts is straightforward using your login credentials.
Investment Tools Available
Ally Bank has a range of investment options:
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Online Savings Account: No minimum deposit or balance, high yields, and no hidden fees. Just remember, you’re limited to six penalty-free withdrawals per statement period due to federal regulations.
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Money Market Account: Similar to a savings account but comes with a check card for easier access to your funds. Ally even covers ATM fees, though you’re still limited to six withdrawals per period for online and telephone transfers, excluding ATM withdrawals.
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Interest Checking Account: This works like the money market account but with unlimited withdrawals. Deposits don’t count towards the transaction limit either.
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Certificates of Deposit (CDs): High-yield CDs with competitive rates and no-fee CDs that allow penalty-free withdrawals before maturity. The high-yield CD automatically renews unless you opt to take the interest as income upon maturity.
Ally Bank Overview
- Online Savings Account: No minimum deposit/balance, high yields, six penalty-free withdrawals per period.
- Money Market Account: Similar to savings but with a check card, slightly lower APY, and Ally covers ATM fees.
- Interest Checking Account: Unlimited withdrawals, similar to money market features.
- Certificates of Deposit (CDs): High-yield, no-fee options, no minimum deposit, penalty-free withdrawals with a lower APY.
Bottom Line
Ally Bank offers competitive rates with no minimum balance and FDIC backing, making it a convenient and safe option. Just be aware that they do rely on your FICO score when opening accounts, and initial deposits could take a bit longer to process than at local banks. Their customer service is available 24/7 online and over the phone, with minimal wait times. If you’ve had any experience with Ally Bank, do share your thoughts.
How We Review Financial Institutions
At Good Financial Cents, we extensively review banking and financial institutions by analyzing their services, customer satisfaction, and financial stability. We aim to provide a balanced overview to guide readers in their financial decisions. Our reviews are based on data from these institutions combined with in-depth research, culminating in ratings from one to five stars.
Ally Bank Product Description
Ally Bank, originally known as GMAC Bank, has rebranded and emerged as a leading online bank. With no physical branches, Ally provides convenience and a variety of products including high-yield savings accounts and CDs. Their platform ensures an easy user experience and transparent pricing, which has earned them a loyal customer base.
Pros:
- Competitive interest rates, especially on savings accounts and CDs.
- No hidden fees and transparent terms.
- User-friendly online and mobile platforms.
- 24/7 customer service.
Cons:
- No physical branches for in-person services.
- Limited cash transactions.
- Heavy emphasis on FICO scores for account opening.
- Possible longer processing times compared to traditional banks.
