I know a number of people that have Ally and like it. I have a traditional regional bank, but I do most of my account unkeep online. I still deposit in person at the branch though. Checking balances etc online is so much easier though! Great review :)
A brief background about the bank
Ally Bank is the banking unit of Ally Financial. The company started in 1919 as the General Motors Acceptance Corporation or GMAC and ever since has been involved in the financing of numerous vehicles for production. Because of the recent financial and economic crisis in the U.S., GMAC’s control and ownership has changed. In 2008, it was approved to become a bank holding company and in 2009, GMAC bank was reintroduced as Ally Bank.
Ally Bank positioned itself to be a branch-less bank and performing almost all of its banking operation and customer service transactions over the internet. This huge savings on operating costs is the main reason why the bank is capable of providing one of the most competitive rates in the banking industry.
Products and services of Ally Bank
The main offerings of Ally Bank include; deposit products such as savings accounts, checking accounts, individual retirement accounts or IRA, money market accounts, and the various types of CDs or certificate of deposits.
- Online Savings Account. The most basic or common type of banking product or service is the savings account. Ally Bank’s online savings accounts do not require an initial deposit, maintaining balance, and there are no recurring fees or charges. They are also noted to provide the highest interest rates in the industry. But the Bank imposes a limit of only 6 transactions per statement cycle.
- Online Checking Account. Ally Bank’s checking account services are interest bearing. Compared to the savings account which limits the number of transactions, you could write as many checks with this online checking account.
- Money Market Accounts. The bank’s money market account service is similar to the savings. The only difference is that the former allows easier access to withdrawing the money you have deposited through the check cards and paper checks issued to the depositor.
- Certificate of Deposits (CDs). Ally Bank offers the High Yield CDs with the best interest rates, the Raise Your Rate CDs that allows you to increase the interest rate that your deposit will receive, and the No Penalty CDs which allows you to pre-terminate or withdraw your CD without penalties.
How to open an Ally Bank account
Opening an Ally Bank account is pretty easy and painless. You will need to get some of your personal information together, like your social security number and your license. From there you will just have to enter some basic information and you are all set. Pretty easy process.
The benefits of opening an account with Ally bank
- Open an account with $0
- Bank online 24 hours a day 7 days a week.
- No monthly fees.
- No ATM fees.
- Some of the higher interests rates around.
- Quick and easy to open with no minimum deposit requirements.
- No maintaining balance required.
- FDIC insured, up to $250,000.
- Interest is compounded daily, this really maximizes your earnings.
- And that interest are computed and reflected on your account daily not monthly or quarterly.
- Ally bank does not charge monthly fees on your deposit accounts.
- Has some great mobile apps to help you manage your money.
Ally Bank is one of the best online banks you will find. It has many great features, won’t catch you with a lot of fees, great mobile apps, and has some of the best rates around. Ally really does a good job as is shown by it being ranked the best online bank two years in a row by Money Magazine. Ally is not perfect though, I wish they had some business banking options, also with no brick and mortar locations you are not going to get that face to face service that you will find with a local bank. But in the end you need to ask yourself do you want a higher interest rate with less fees or a personal experience with more face time?
So if you are ready to open an Ally Bank account go ahead and get started by clicking here.
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About the Author: KC Beavers is a semi-retired entrepreneur. The subject of personal finance has always fascinated him. In an effort to not bore those around him with all his love of personal finance as much he has come here to bore all of you instead. Be sure to follow KC on Twitter or Google+.