Ally Bank Review – An Online Bank With No Minimum Balance

by Sean Bryant on June 8, 2012

Ally bank was established in 2009, after the company rebranded from the name GMAC Bank. They were attempting to give a facelift to the bank by making it more client friendly. By being an online bank it allowed them to lower their fees and increase the interest rates on their products.

Ally Bank has quickly grown into one of the most respected online banks. They were names by PC Magazine as one of the top five online banks in 2011. Take a look at this Ally Bank review below and you will see why this bank is a perfect choice.

Ally Bank Products

Interest Checking – An Ally Bank checking account currently pays an interest rate up to 0.75 percent. There is no minimum deposit required to open an account and there are no monthly maintenance fees. One of the best features is that you will have no ATM fees anywhere in the U.S.

You can get money back with Ally Perks. All you will need to do is make specific purchases using your Ally Bank debit card and you will get cash back into your account. To make deposits into your checking account just scan your check and it will be deposited though Ally eCheck Deposit.  They have a mobile option coming soon so you will be able to scan and deposit directly from your smartphone.

Online Savings – An Ally Bank savings account has no minimum balance to get started and has no monthly maintenance fees. You are allowed to make six transactions per month and has once of the highest Interest rates available.

High Yield CD – The Ally Bank High Yield CD has no minimum amount to get started and offers a competitive APR. They also offer “Ally Ten Day Best Rate Guarantee.”  This means if interest rates increase within ten days after opening your account, you will get the highest rate.

Raise Your Rate CD – It’s no secret that interest rates can move at any time. Because of this I love the Ally Bank Raise Your Rate CD. They give you the option to raise your rate once on a two year CD or twice on a four year CD. Once again there is no minimum when opening a CD.

No Penalty CD – One drawback to putting your money into CD’s is that you are assessed an early withdrawal fee if you remove the money before the term of the CD is up. With the Ally Bank No Penalty CD you can withdraw your money plus interest anytime. To have this convenience of being able to withdrawal your money at any time you will have a lower interest rate.

What I Love About Ally Bank

With Ally Bank you can start an account with as little as $1 and there is no minimum balance that you must maintain throughout the month. Most banks require you to have a certain balance or they will charge you a fee. You also will have the peace of mind that you will not be charged a mainly maintenance fee

One of the best features is that if you ever have a question about your account you can call their customer support 24 hours a day and 7 days a week.  You are also able to manage your account directly from your smartphone. This is a nice feature for those who are always on the go.

A Few Things I Don’t Like

Like all online banks, your money is not available immediately after deposit. This could be an issue if you need to move money quickly from a savings account to  checking account. They also do not have any form of overdraft protection, which means each day your account is over-drafted you will be charged a fee of $9.

Overall, I feel that Ally Bank is a great choice if you are looking for an online bank. They have very competitive interest rates and they don’t charge any outrageous fees.


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Sean Bryant

Sean Bryant created in 2011 to help pass along his knowledge of finance and economics to others. After graduating from the University of Iowa with a degree in economics he worked as a construction superintendent before jumping into the world of finance. Sean has worked on the trade desk for a commodities brokerage firm, he was a project manager for an investment research company and was a CDO analyst at a big bank. That being said he brings a good understanding of the finance field to the One Smart Dollar community. When not working Sean and he wife are avid world travelers. He enjoys spending time with his daughter Colette and dog Charlie.

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