Banking Bank Reviews

Ally Bank Review [2025]: High-Yield Savings Account and No Monthly Fees

Ally Bank is a good option for individuals seeking high APY rates, no monthly fees, and who don't mind managing their money completely online.

Updated July 2, 2025
Fact checked
Ally Bank

Ally Bank

OUR VIEW

Ally Bank is an online-only bank that offers Spending and savings accounts, a money market account, and CDs, as well as other banking products like investment accounts, auto refinancing, and credit cards. It offers higher APY rates than many conventional banks and has no monthly maintenance or overdraft fees. Ally also has $0 account minimum balances and access to more than 75,000 ATMs through the Allpoint network.

Overall, I like Ally’s Spending and savings accounts, in particular. There are no monthly service fees to worry about, and Ally has nice automated savings tools, like its savings buckets, which make it easy to visualize what you’re saving for.

However, if you need to deposit cash or aren’t comfortable having an online-only bank, Ally Bank may not be the right choice for you.

Pros

No monthly maintenance fees
Competitive APY rates on savings accounts and CDs
Extensive ATM network with fee reimbursement

Cons

No physical branches for in-person banking
Does not accept cash deposits
No international wire transfers
How we evaluate products

Who is Ally Bank right for?

Every so often, I like to check that I'm earning the best rate on my emergency fund. I tend to stick with online-only banks since they generally offer better rates and fit my needs. During my research, Ally Bank stood out as a strong option for me and individuals building a savings habit or who are new to online banking.

I recommend Ally Bank if:

  • You want to consolidate your money at one online bank
  • You want an above-average annual percentage yield (APY) on your savings
  • You don't need to deposit cash
  • You want savings tools and boosters to help you save more
  • You don't want to pay monthly maintenance or overdraft fees

What we like about Ally Bank

In addition to the relatively high APY offered on the Ally accounts, there are several things to like about Ally Bank, including:

ATM access: Ally offers access to 75,000 ATMs through the Allpoint network and does not charge an ATM fee. Ally will even reimburse you up to $10 a month for any fees you incur at out-of-network ATMs.

Highly rated apps: Ally has an easy-to-use website and mobile apps available on both the Google Play Store and the Apple App Store. On Google Play, Ally earned 4.4 out of 5 stars and has more than 33,000 reviews. On the Apple App Store, it has a 4.7 star rating and over 93,000 reviews.

Savings tools: Both the Spending and savings accounts offer buckets to help you get a clear picture of your account balances. The savings account also has boosters like recurring transfers, round-ups, and Surprise Savings to help you increase your savings balance automatically.

Overdraft protection: Ally's overdraft service, called CoverDraft, covers you up to $100. You qualify for coverage 30 days after you deposit $100 or more in your Ally Spending account. If you have a monthly direct deposit of $250 or more for at least two months, your coverage may increase to $250.

What Ally Bank could improve

I think Ally Bank is a good option for individuals who are comfortable managing their finances online, but there are some drawbacks. For instance:

No physical branches: Ally Bank doesn't have physical branches, which can make it difficult to get help if you prefer to visit a location or speak with someone in person.

No cash: Similarly, you can't deposit cash with Ally. You can remotely deposit checks through the Ally app, and you can withdraw cash from one of Ally's partner ATMs.

No international wire transfers: Ally does not process international wire transfers. While it does do domestic wires, you'll pay a $20 fee per outgoing transaction.

Featured checking accounts

5.0
info
Financebuzz awards badge

2025 award winner Best Checking and Savings Combo

SoFi Checking & Savings - Earn Up to $300 When You Set Up Direct Deposit
Earn up to 3.80% APY1 and collect up to a $300 cash bonus with direct deposit or $5,000 or more in qualifying deposits.2 FDIC Insured.3
Learn More
Earn Over 3x the National Average
1.25% variable Annual Percentage Yield (APY).4 No minimum or maximum balance requirements. No monthly fees.5 Secured and FDIC Insured6
Learn More
4.5
info
Financebuzz awards badge

2025 award winner Best Online Checking Account

Discover® Cashback Checking
Earn 1% cash back on up to $3,000 in debit card purchases each month.7 No minimum deposit or balance. FDIC Insured.
Learn More

Ally Bank account basics

Ally Bank offers a range of account options typically found at traditional banks, including checking, savings, and various certificates of deposit (CD) accounts.

Account Monthly Maintenance Fees APY
Spending Account $0 0.10% (as of 05/02/25) on balances under $15,000

0.25% on balances over $15,000

Savings Account $0 3.50%8
Money Markets $0 3.50% (as of 06/23/25)
Certificates of Deposit $0 Varies by account type and term, but 3.90% (as of 06/23/25)on 6- and 9-month High Yield CDs

Spending Account

  • Monthly account fee: $0
  • FDIC insurance: Yes
  • APY: 0.10% (as of 05/02/25) on balances under $15,000 and 0.25% on balances over $15,000

The Spending account is Ally's version of a checking account. It does not charge monthly maintenance or overdraft fees, and there is no minimum balance requirement to open an account. The account offers early direct deposit and access to over 75,000 ATMs nationwide. It comes with a debit card, but you can also order paper checks.

What I like most about the Ally Spending account is that it earns an APY on checking balances, a feature that many checking accounts, even those at the best banks, don't offer. You earn 0.10% (as of 05/02/25) APY on balances of $15,000 or less. If your account balance is over $15,000, you'll earn 0.25%. However, you'll earn a much higher APY using the Ally savings account.

Savings Account

  • Monthly account fee: $0
  • FDIC insurance: Yes
  • APY: 3.50%

Ally's savings account offers 3.50% APY on all balances, which is much higher than the national average of 0.38% (as of 6/16/25). It also has no minimum opening deposit requirements. The APY compounds daily, which means you'll earn slightly more than if it compounded monthly. However, you are limited to only 10 withdrawals per statement cycle.

I especially like that an Ally savings account also offers access to savings tools called "buckets" and "boosters." Buckets allow you to spread your savings balance into smaller, specific goals. The boosters are small ways to save more, such as the Surprise Savings tool, which analyzes your spending and transfers extra funds from your Spending account to your savings account.

Read more in our Ally Online Savings Account review

Money Markets

  • Monthly account fee: $0
  • FDIC insurance: Yes
  • APY: 3.50% (as of 06/23/25)

A money market account is a type of savings account, but some banks may offer higher annual percentage yields than on their savings accounts. Unlike regular savings accounts, money market accounts generally come with checks or a debit card, though there may be limits on the number of transactions you can make.

Ally's money market account earns 3.50% (as of 06/23/25) APY on any balance and has no minimum balance, just like the savings account. However, the money market account includes a debit card and checks but does not have savings buckets or other tools. It also limits some types of withdrawals and transfers to only 10 per account cycle.

Since both accounts offer the same APY, the savings account is likely the best option for most people.

Certificates of Deposit

  • Monthly account fee: $0
  • FDIC insurance: Yes
  • APY: Varies by account type and term

Ally Bank offers three different CD account options: the High-Yield CD, Raise Your Rates CD, and No-Penalty CD. The High-Yield CD offers the highest APY, depending on the term you select. A 3-month term will earn only 2.90% APY, but a 6- or 9-month term earns 3.90% (as of 06/23/25).

Like the other Ally accounts, there is no minimum balance requirement to open or earn APY on any of Ally's CD options. If you need to withdraw your money before the term is complete, you'll pay an early withdrawal penalty ranging from one to five months' interest, depending on the CD term. If you choose the No-Penalty CD, there is no early withdrawal penalty after the first six days of account funding, but the term is 11 months, and you'll only earn 3.55% (as of 05/02/25) APY.

What else does Ally offer?

In addition to its standard banking products, Ally Bank offers a range of other account types.

Investing portfolios: Ally offers three different ways to invest, including a robo portfolio, self-directed investing accounts, or working with an investment advisor for an additional fee.

Individual Retirement Account (IRAs): Ally Bank will help you save for retirement by establishing a new Traditional or Roth IRA. You can also roll over a retirement account from a previous employer into your Ally IRA.

Credit Cards: Ally offers several credit cards with various perks. For example, the Everyday Cash Back Card earns 3% cash back at gas stations, grocery stores, and drugstores but only 1% on all other purchases.

Auto: Ally also offers auto loan refinancing and specific insurance coverage, including GAP and extended vehicle coverage, for an additional fee.

Alternatives to Ally

SoFi®

The SoFi Checking and Savings account is a good option if Ally Bank doesn't appeal to you. The checking portion of the account offers an APY of 0.50% (as of 01/24/25) with direct deposit. The high-yield savings account's APY is up to 3.80%with a qualified direct deposit.1 If you don't have a qualified direct deposit, you only earn 1.00% (as of 01/24/25). SoFi also offers no-fee overdraft coverage, provided you have a direct deposit of at least $1,000 per month.910

SoFi is a Member FDIC.3

Visit SoFi's Checking and Savings account | Read our SoFi review

Chime®

Chime is a fintech company that partners with FDIC-insured banks to protect customer deposits. It's relatively similar to Ally Bank and does not charge monthly maintenance or minimum balance fees.

However, when it comes to Chime vs. Ally, Ally is the winner. Chime only offers 1.25% APY on savings balances.4 If you set up a qualified direct deposit of at least $200 per month, your APY increases to 3.75%11. So, while you may earn slightly more with Chime, it's not a substantial amount, and if your direct deposit ever stops, you'll lose a significant portion of your APY.

Visit Chime's Savings account | Read our Chime review

Discover

Discover is best known as a credit card company, but it also offers a high-yield savings account with an APY of 3.50%, slightly higher than Ally's, and has no monthly fees or minimum opening deposit requirements.7 The Discover® Cashback Debit program provides 1.00% cash back on up to $3,000 in monthly debit purchases.12 It also has no fees, early direct deposit, and access to more than 60,000 fee-free ATMs.

Visit Discover's Cashback Debit account | Read our Discover review

FAQs

Is Ally Bank a good bank?

Ally Bank is a good option for individuals seeking an online-only bank. It offers relatively high APYs on its savings, money market, and CD accounts, and even pays some interest on its Spending (or checking) account. Ally Bank also doesn't charge account maintenance or overdraft fees, and doesn't have a minimum balance requirement to open an account.

Is my money safe at Ally Bank?

Yes, Ally Bank is FDIC-insured, so your money is safe up to the $250,000 per person, per ownership category. Additionally, Ally Bank requires multi-factor authentication to protect your information and utilizes firewalls to block unauthorized access. It also offers free antivirus and anti-malware software to customers for up to three devices.

Bottom line

Finding the best online bank can be a bit of work, but Ally Bank is definitely worth considering. I appreciate that it offers an APY on its Spending account and has fairly competitive rates on its savings, money market, and CD accounts. I also appreciate that, unlike some competitors, you don't have to do anything special to earn the best APY with Ally, which makes it ideal for those just starting to save.

Regardless of which online bank you choose, be sure to carefully review the account disclosures and read reviews to help you make the best choice for your specific needs and financial goals.

5.0
info
Financebuzz awards badge

2025 award winner Best Checking and Savings Combo

SoFi Checking and Savings Benefits

  • Earn up to 3.80% APY1 and collect up to a $300 cash bonus with direct deposit or $5,000 or more in qualifying deposits2
  • No account, overdraft, or monthly fees10
  • Get your paycheck up to two days early13
  • Access additional FDIC insurance up to $3 million3
Open an account with SoFi® here

Financebuzz logo

Thanks for subscribing!

Please check your email to confirm your subscription.