Ally Interest Checking Account
Fees
Minimum Deposit
Our Rating
APY Checking
Ally Interest Checking Account
Fees
Minimum Deposit
Our Rating
APY Checking
Ally may be the new kid on the banking block, but in its 14 years of operating, it has established a solid reputation for offering user friendly products even if you have less than ideal credit.
While the spotlight product is the Ally savings account, Ally’s Interest Checking account also has some interesting features which may encourage you to move all of your banking under Ally’s roof.
As the name suggests, the Ally Interest Checking account is an interest bearing account, but it is also designed as an everyday bank account, with the reassurance of FDIC coverage, as you would get with a traditional bank checking account. Overall, this is a good checking account that included on our best online bank accounts for 2024.
Ally Interest Checking: Account Features
Explore the features of Ally Interest Checking Account:
-
Tiered APY
The account is a reward checking, but there is a two-tiered APY. If your balance is less than $15,000 as a daily average, the current rate is 0.10%, but this increases to 0.25% if you have a higher daily balance.
However, if you carry a balance, you may want to deposit it in an Ally savings account, which offers 4.20% APY, as of October 2024.
-
Remote Check Deposit
Although this is an online account, you can still deposit checks using the Ally eCheck Deposit feature on the app. You simply need to enter a few details of the check and then snap a photo using your mobile device.
-
Configurable Debit Card
Ally allows you to define, where, when and how you can use your Debit Mastercard. This also includes setting spending limits and even blocking your card if necessary.
-
Spending Round Ups
This feature can only be used if you have both an Ally checking and Ally Savings account. Each time you use your debit card to make a purchase, Ally will round up the expense charged to your checking account to the nearest dollar.
The difference is automatically transferred into your savings account. For example, if you swipe for a purchase of $8.45, it will be applied to your checking account as $9 and the $0.55 will go into your savings, providing a simple way to boost your savings balance.
-
No Balance Requirements
You can open an account with any amount and there are no penalties or charges based on your balance. This means that whether you have $1 or $10,000 in the account, you’ll earn the same APY.
This differs from many interest bearing checking accounts which require you to have a minimum amount in the account to receive interest on your balance.
-
Early Direct Deposit
If you have your salary direct deposited into your account, you can access the funds up to two days earlier.
Additionally, after two months of direct deposit, Ally will increase your CoverDraft to the maximum of $250.
Is the Ally Interest Checking Account Good?
While it depends on your preferences, requirements and circumstances, we think Ally is one of the best options when it comes to checking accounts.
As with any financial product, there are both pros and cons associated with the Ally Interest Checking, which will influence whether it is a good product for you
Pros | Cons |
|---|---|
24/7 Customer Support | No Branches |
Free Overdraft Protection | No Cash Deposits |
No Maintenance Fees
| |
Fully Online Checking Account | |
Use of the Allpoint ATM Network |
- Free Overdraft Protection
Ally has two features that provide a defense against any accidental overdrafts. There is an overdraft transfer service, which transfers funds from your linked savings account to cover any overspends.
The other feature is Coverdraft, which provides a buffer against accidental spending with a temporary limit of $100 to $250.
- No Maintenance Fees
Unlike many high interest checking accounts, the Ally Interest Checking account does not have any monthly maintenance fees.
So, you don’t need to worry about fees eating into your balance or needing to meet fee waiver criteria.
- 24/7 Customer Support
Ally banking and credit card customers have access to a 24/7 customer support helpline or online chat. So, if you run into any issues or have a query, you can access help day or night.
- Fully Online Checking Account
Ally is an online financial institution, so this is a fully online checking account. You won’t have access to in branch support, but you can manage your account online, via the app or using the customer helpline.
- Use of the Allpoint ATM Network
Although Ally does not operate its own ATM network, you can use the Allpoint ATM network in the U.S without incurring any fees.
Ally will also provide reimbursement for any other ATM fees with a cap of $10 per statement period.
- No Branches
Ally is a fully online bank with no branch network.
So, if you have any queries or issues, you won’t be able to access face to face support. You’ll need to rely on phone and online chat assistance.
- No Cash Deposits
Although Ally has provision for mobile check deposit, there is no way to deposit cash into your account.
This means that if you frequently deal in cash, you cannot use Ally as your exclusive banking institution, as you’ll need to pay cash into an external account and then initiate a transfer to your Ally account.
Is Ally Checking a Good Fit for Your Need
The Ally High Interest Checking account is a solid option, but it may not be the right fit for you. There are a number of scenarios, where the account is worthy of serious consideration. These include:
- You tend to slip into being overdrawn: If you tend to get a little overwhelmed with your day to day finances and get hit with overdraft charges, you’ll appreciate this account. With two overdraft protection features, you have protection for up to six mishaps per month.
- You don’t tend to deal in cash: Since Ally has no provision for cash deposits, this account is only a good fit if you don’t tend to deal in cash. If you do regularly receive cash payments, you’ll need to maintain an external bank account, which allows you to deposit cash and then transfer to your Ally account.
- You need help building savings patterns: Many people find it difficult to maintain a budget that includes funds for savings. However, Ally has tools, such as Round Ups, which can help you. You’re not likely to miss those few cents when you make debit card purchases, but over a month or two, they can provide a boost to your savings.
Top Offers From Our Partners
Top Offers From Our Partners
Is Ally a Good Bank to Work With?
One of the main benefits of Ally Bank is a solid reputation for providing decent customer service and easy-to-use products. While it is an online bank and does not offer branch support, you can access the customer support team 24/7.
The Ally Interest Checking account pairs well with Ally Savings, but there are limited product offerings. If you’re the type of person who likes a choice of different accounts within each category, you may find Ally lacking.
However, the Ally products do have nice features and competitive rates. You can also access high Rates on Ally CDs, loans, credit cards and investing products, allowing you to move all your everyday banking over to Ally.
How to Open an Ally Interest Checking Account?
Since Ally is an online bank, it makes it very easy to open a new account online. You can open an Ally Interest Checking account in a few simple steps.
- Navigate to the Product Page: The first thing you’ll need to do is navigate to the Interest Checking account page from the Ally Website. You can find the product link under the “Checking and Savings” tab on the bar at the top of the main homepage and select “Online Checking.” From this page, you’ll see all the pertinent details about the account and if you’re ready to proceed, you need to click the blue “Open Account” button.
- Complete the Application: The first screen you’ll see asks you to confirm if you are an existing Ally customer. You will then be directed to the main application page. You’ll need to provide your personal details including your full name, address, date of birth, Social Security Number and email address.
- Verify Your Identity: As is standard with all U.S banks and financial institutions, you’ll need to verify your identity to open a new account. You can do this by submitting a copy of your driver’s license, passport or other government issued photo ID.
Fund Your Account: The final step is optional, but you will be directed to a screen to fund your new account. This is a good idea if you want to start using your new account quickly.
FAQs
Does Ally Interest Checking Account offer a promotion?
Ally does not typically offer promotions for new customers, and there is not currently any promotions for the Interest Checking account.
Does Ally Checking Account earn interest?
Yes, regardless of your balance, you’ll earn interest with this account. However, there are two interest tiers. If your daily balance is less than $15,000, you’ll earn 0.10% but this increases to 0.25% for balances of over $15,000.
How do you close an Ally Checking Account?
If you want to close your Ally Interest Checking account, the quickest and easiest way is to call the customer support helpline. An Ally representative can guide you through the closure process and initiate your closure request.
How We Review Checking Accounts: Our Methodology
The Smart Investor team has conducted a comprehensive review of checking accounts offered by various banks, taking into account several key factors to provide a thorough evaluation. Here's how we rated them across four important categories:
-
Checking Account Features (60%): We meticulously assessed the features and benefits associated with each bank's checking accounts. Factors considered include account fees, minimum balance requirements, ATM access, overdraft protection, online and mobile banking functionalities, and additional perks such as rewards programs. Higher ratings were awarded to banks offering a wide range of features and benefits that cater to diverse customer needs, ensuring convenience and flexibility in managing finances.
-
Customer Experience (20%): A positive customer experience is essential in banking, so we evaluated each bank's performance in this area. This included assessing the ease of account opening, quality of customer service, availability of support channels, and overall user satisfaction. Ratings were based on factors such as responsiveness, efficiency, and the bank's commitment to meeting customer needs, ensuring a seamless and satisfactory banking experience.
-
Diversity of Other Financial Products (10%): We also considered the diversity of other financial products offered by each bank, such as savings accounts, loans, credit cards, and investment options. Higher ratings were given to banks with a comprehensive suite of financial products, allowing customers to meet their various banking and financial needs in one place.
-
Bank Reputation (10%): The reputation of a bank is a crucial factor in decision-making. We examined factors such as financial stability, regulatory compliance, and public perception to determine each institution's overall trustworthiness and reliability. Higher ratings were assigned to banks with strong reputations, reflecting their credibility and ability to inspire confidence among customers.
By considering these categories and assigning appropriate weights to each, our review aims to provide valuable insights to help individuals make informed decisions when selecting a checking account
