Ally Bank Problems and Solutions
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Ally Bank is well-known for having attractive APYs and practically no fees. But, what's the catch? Read on to know what nuisances you may encounter.
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Ally is an online-only bank that boasts deposit accounts with competitive rates and low fees. But, it's not all sunshine and rainbows.
Most user complaints revolve around its lack of physical branches, limited deposit options, and such.
If you have any banking deal-breakers, continue reading to find out what problems you may run into with Ally Bank.
Is Ally Bank Having Problems Right Now?
While Ally Bank has its share of problems, they're not likely to set off major alarms.
But, it pays to be aware of them so here are some concerns you should look out for:
In 2013, Ally Bank was ordered to pay $80 million in damages to their customers who were illegally discriminated against when they applied for loans. These borrowers with certain ethnicities were given higher markups on their loan rates than others.[1]
No Brick-And-Mortar Branches
One of the main reasons why Ally Bank can offer a high APY is because it doesn't have any physical locations.
This means no live-person tellers or bank staff to help with your transactions, translating to lower overhead expenses for the bank.
However, this entails a purely digital banking experience which may be uncomfortable or difficult for some.
What You Can Do:
Even though Ally Bank is online only, it has 24/7 live customer care specialists. You can reach out to them anytime at +1-877-247-2559 or through the chat feature on their site or mobile app.
Additionally, Ally is known for its easy-to-navigate online banking system so you're bound to get the hang of it with just a few uses.
You can also bridge that gap by maintaining a checking account with a brick-and-mortar bank and linking it to your Ally Bank account. This allows you to do physical transactions with a traditional bank while reaping the benefits of a digital one too.
- U.S. Bank Smartly® Checking and Standard Savings:
Up to $700 Bonus - BMO Smart Advantage Checking:
$250 Cash Bonus - Chase Total Checking®:
$300 Bonus - Bank of America Advantage Banking:
$200 Bonus Offer - Bluevine:
Free Business Checking - Up to 2.0% APY - Discover® Cashback Checking – Up to $30/Month Cashback
- Axos Bank:
Rewards Checking - Up to 3.30% APY - Quontic:
High Interest Checking - Up to 1.10% APY - Fifth Third Bank:
Personal Checking Account - $200 Bonus - KeyBank:
Key Select Checking® - $200 Bonus
No Cash Deposits
Since Ally Bank is fully online, meaning there are no ATMs or physical branches, users are unable to do cash deposits.
This limitation makes it less accessible for those who often handle cash when depositing money into their accounts.
What You Can Do:
Although Ally Bank doesn't accept cash deposits, you can transfer funds electronically or do a mobile check deposit.
If you have cash on hand that you want to deposit in your Ally Bank account, you can consider purchasing a money order or cashier's check.
Or deposit it in your traditional bank account and write out a check. You can then deposit this check remotely through your Ally mobile app.
No Outgoing International Wire Transfers
Ally Bank does not support outgoing international wire transfers.[3] These transactions are difficult to process because they typically require bigger infrastructure and partnerships with other banks.
However, some Ally accounts can receive international wires using the routing number (021000021) and swift code (CHASUS33) provided to overseas senders.[4]
What You Can Do:
There are several alternatives available when you need to wire funds overseas, making traditional wire transfers almost a thing of the past.
Consider using services like Wise and PayPal, which offer faster transfers and lower fees.
Linking your Ally account to these services allows for convenient and inexpensive international transfers.
Limited Loan Options
Ally Bank has both personal banking products and loans but their catalogue is far less compared to that of other banks.
They currently offer mortgages, auto loans for vehicles, and loans for medical treatments and home improvement.
What You Can Do:
If you want a general personal loan, you must look elsewhere. The same goes for small business loans.
Ally Bank is a safe place to park your funds in. It is FDIC-insured, providing coverage on deposits of up to $250,000 for individual accounts and $500,000 for joint accounts.[5]
Ally Bank Products
Ally Bank: Online Savings Account - 4.20% APY
$0 minimum opening deposit. No minimum balance requirement. No fees to open or maintain account.
Ally Bank: Interest Checking
- 0.10% APY for daily balances less than $15,000
- 0.25% APY for daily balance over $15,000
- $10/month rebate for ATMs outside of Ally Network
- $0 minimum opening deposit
- No fees to open or maintain account
- FDIC insured
- Daily compounding interest
Ally Bank: Term CDs
- Up to 4.50% APY
- $0 Minimum Opening Deposit
- Up to 5 years
- No monthly maintenance fee
- FDIC insured
- Daily Compounding Interest
Ally Bank: Raise Your Rate CDs
- 3.75% APY
- 2 or 4-Year Terms
- Opportunity to increase your rate once over the 2-year term or twice over the 4-year term
- $0 minimum opening deposit
- $0 monthly maintenance fee
- FDIC insured
- Daily compounding interest
Ally Bank 18-Month CD - 4.45% APY
Ally Bank 1-Year CD - 4.50% APY
Ally Bank: 9-Month CD - 4.45% APY
Ally Bank 3-Year CD - 4.00% APY
Ally Bank 5-Year CD - 3.90% APY
Ally Bank: High Yield CDs
| CD Term | APY |
|---|---|
| 3 Months | 3.00% |
| 6 Months | 4.40% |
| 9 Months | 4.45% |
| 12 Months | 4.50% |
| 18 Months | 4.45% |
| 3 Years | 4.00% |
| 5 Years | 3.90% |
Bottom Line
Ally Bank is a great option for those who are comfortable with the online-only banking model or those who want to deviate away from traditional banking.
While concerns may arise regarding the absence of physical branches and a few other drawbacks, having a high APY and fee-free accounts makes Ally an attractive choice regardless.
References
- ^ Consumer Financial Protection Bureau. CFPB and DOJ Order Ally to Pay $80 Million to Consumers Harmed by Discriminatory Auto Loan Pricing, Retrieved 08/23/2023
- ^ Ally Bank. Contact, Retrieved 11/6/23
- ^ Ally Bank. FAQ: How do I send a wire transfer?, Retrieved 11/6/23
- ^ Ally Bank. FAQ: How do I receive a wire transfer?, Retrieved 11/6/23
- ^ Ally Bank. FDIC Insurance, Retrieved 11/6/23
Online Savings Account - Earn 4.25% APY
- No fees
- No minimum opening deposit
- No minimum balance required
Chase Total Checking® - $300 Bonus
- New Chase checking customers enjoy a $300 bonus when you open a Chase Total Checking® account with qualifying activities
- Access to more than 15,000 Chase ATMs and more than 4,700 branches
- Chase Mobile® app - Manage your accounts, deposit checks, transfer money and more -- all from your device.
- JPMorgan Chase Bank, N.A. Member FDIC
- Open your account online now
- Available online nationwide except in Alaska, Hawaii and Puerto Rico. For branch locations, visit locator.chase.com.
- Chase Overdraft Assist℠ - no overdraft fees if you're overdrawn by $50 or less at the end of the business day or if you're overdrawn by more than $50 and bring your account balance to overdrawn by $50 or less at the end of the next business day*
Bank of America Advantage Banking - $200 Bonus Offer
- The $200 bonus offer is an online only offer and must be opened through the Bank of America promotional page.
- The offer is for new checking customers only.
- Offer expires 5/31/2024.
- To qualify, open a Bank of America Advantage Banking account through the promotional page and set up and receive qualifying direct deposits totaling $2,000 or more into that new account within 90 days of opening.
- Bank of America will attempt to pay bonus within 60 days.
- Additional terms and conditions apply. See offer page for more details.
- Bank of America, N.A. Member FDIC.
CIT Bank Platinum Savings - 5.05% APY
- 5.05% APY with a balance of $5,000 or more
- 0.25% APY with a balance of less than $5,000
- $100 minimum opening deposit
- No monthly maintenance fee
- Member FDIC
Rewards Checking - Up to 3.30% APY
- Use the promo code AXOS300 when you apply for a Rewards Checking account by June 30th, 2024. Then have qualifying direct deposits to earn up to a $300 bonus!†
- Build your own APY with up to 3.30% APY*
- Zero monthly maintenance fees
- Zero overdraft or NSF fees
- Zero minimum monthly balance reqs
- No initial deposit requirement
- Unlimited domestic ATM fee reimbursements
- Online debit card management
- Simple, 3-step process for direct deposit
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