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.
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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 - 4.25% 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 5.15% APY
- $0 Minimum Opening Deposit
- Up to 5 years
- No monthly maintenance fee
- FDIC insured
- Daily Compounding Interest
Ally Bank: Raise Your Rate CDs
- 4.00% 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 - 5.15% APY
Ally Bank 1-Year CD - 5.10% APY
Ally Bank: 9-Month CD - 5.05% APY
Ally Bank 3-Year CD - 4.25% APY
Ally Bank 5-Year CD - 4.10% APY
Ally Bank: High Yield CDs
| CD Term | APY |
|---|---|
| 3 Months | 3.00% |
| 6 Months | 5.00% |
| 9 Months | 5.05% |
| 12 Months | 5.10% |
| 18 Months | 5.15% |
| 3 Years | 4.25% |
| 5 Years | 4.10% |
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
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