Ally is an online-only bank.
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The bottom line: The Ally Interest Checking Account is a great online checking account that doesn’t charge any service fees. It now offers early direct deposit, so you can receive your paycheck up to two days early. The bank also reimburses you for ATM fees charged by out-of-network providers.
Pros and cons
ProsCons
Earn Ally Interest Checking Account for account balances under $15,000, and Ally Interest Checking Account for balances over $15,000
No monthly service fees or minimum opening deposit required
Connect with Zelle
Early direct deposit
Large ATM network and up to $10 in ATM reimbursements each month
24/7 customer support
Free overdraft protection
No physical locationsCan’t deposit cash
Ally Interest Checking Account
You may like the Ally Interest Checking Account if you prefer to do all your banking with one institution. You can also open a high-yield savings account, money market account, and CD with Ally.
If you set up a savings or money market account with Ally, you can request overdraft protection. If you overdraft your checking account while enrolled in this service, the money is automatically withdrawn from your savings or money market account. This way, you don’t have to pay an overdraft fee or risk your transaction being denied.
This account is good for people who don’t have a problem banking digitally. There are no physical branch locations, so if you’re happy doing everything online, through an app, or over the phone, you may find Ally is right for you.
Ally Interest Checking Account features
Setting up an Ally Interest Checking Account online is relatively quick and easy. It will take a few business days for any money you transfer from an external bank account to show up in your Ally account.
Ally doesn’t require an opening deposit or a minimum account balance. You don’t have to pay a monthly service charge, either.
You’ll receive a 0.10% APY if your balance is under $15,000, and 0.25% if your balance is over $15,000. This interest is compounded daily and paid monthly.
With Ally, you can deposit checks digitally, but you can’t deposit cash. You have access to over 43,000 Allpoint® ATMs, and if an out-of-network ATM provider charges you a fee, Ally will reimburse you up to $10 per month.
You can set up bill payments directly from your Ally account, and you can link the account to Zelle to transfer money directly between your checking account and others’ bank accounts.
Ally is also now offering early direct deposit, so you may receive your paycheck up to two days early.
How Ally works
Ally Financial is a banking institution known for operating entirely online and for providing loans and deposit accounts. The Ally Interest Checking Account is known for offering a higher APY than many competitors and for being easy to use.
Ally is an online-only bank, but it has physical ATMs. It’s part of the Allpoint ATM network, so you have free access to over 43,000 Allpoint ATMs around the US. If you use an out-of-network ATM and the ATM provider charges a fee, then Ally will reimburse up to $10 per month.
The Ally mobile app has received 4.7 out of 5 stars in the Apple store, and 3.9 out of 5 stars in the Google Play store.
Live customer service is available 24/7, both by phone and online chat.
Your money is FDIC insured for up to $250,000, or $500,000 if you have a joint account.
Ally trustworthiness and BBB rating
We use ratings from the Better Business Bureau so you can see how a bank deals with customer issues.
Ally received a C- rating from the BBB because it has a high volume of customer complaints and three unresolved complaints.
A good BBB rating isn’t necessarily the be-all and end-all. Talk to current customers or read online customer reviews to see if a financial institution might be a good fit.
On the plus side, Ally doesn’t have any recent public scandals.
Ally vs. Capital One 360
Neither Ally nor Capital One charges users monthly fees to maintain a checking account. Both companies allow you to connect with Zelle, and both make it easy to deposit checks digitally.
Capital One does have physical branch locations (although they are limited). If there’s a branch near you, you may prefer Capital One if you like in-person banking.
If you have more than $15,000, you may prefer to go with Ally, which pays 0.25%.
Capital One offers several options for overdraft protection. You may choose to transfer money from your savings or money market account (like you would with Ally), settle for having your purchase denied, or receive “next day grace,” which gives you 24 hours to replace the overdrawn funds.
At Ally, you can link your checking account to another account or sign up for CoverDraft. CoverDraft will allow you to overdraw up to $100 ($250 if you have direct deposit set up), and you’ll have 14 days to restore your account balance without paying any overdraft fees.
Capital One does provide access to ATMs, but unlike Ally, the bank doesn’t reimburse out-of-network ATM fees. Capital One also isn’t known for having customer service as strong as Ally’s.
Ally vs. Chime
Both Chime and Simple are online-only banking institutions. Both offer conveniences like mobile check deposit and early direct deposit.
However, Ally has an interest-earning checking account, while Chime doesn’t pay interest on its checking account.
Chime’s customer service representatives aren’t as accessible as Ally’s. While Ally offers 24/7 customer support by phone and live chat. Chime offers 24/7 email customer support. To contact a representative by phone, call from Monday through Saturday, 8:00 a.m. to 8:00 pm. ET. Or call Sundays, 10 a.m. to 6 p.m. ET.
Frequently asked questions
Does Ally charge monthly service fees on its checking account?
No. The Ally Interest Checking Account doesn’t have monthly service fees.
Is the Ally Interest Checking Account good?
Ally has an excellent online checking account that stands out because it doesn’t charge typical bank fees. There are zero monthly services and overdraft fees. You may also receive up to $10 in out-of-network ATM reimbursements per month.
The Ally Interest Checking Account also might be ideal if you’d like to receive early direct deposit.
How can I get early direct deposit on my Ally Interest Checking Account?
If you have already set up direct deposit and received at least two qualifying direct deposits, you’ll automatically qualify for direct deposit.
If you don’t have direct deposit yet, you’ll need to talk to your employer about setting up direct deposit. Usually, you’ll need to provide your checking account number and the Ally Bank routing number. Once you’ve received two qualifying direct deposits, you may qualify for early direct deposit.