Ally Interest Checking Account Review
Ally Bank is an online-only bank that offers an Interest Checking account among its services. The Interest Checking offers plenty of features - no monthly maintenance fees, no minimum balance, 24/7 customer support, a free debit MasterCard with reimbursed ATM fees, simple online and mobile access, and interest-bearing accounts.
No Monthly Maintenance Fees & No Minimum Balance
Unlike many of the well-known brick-and-mortar banks, Ally has no minimum balance to open an Interest Checking account. They also do not charge any fees for monthly maintenance, ACH transfers to non-Ally accounts, incoming domestic or international wires, or overdraft transfer protection with an Ally Savings or Money Market account.
However, Ally does charge fees for some non-standard transactions. These include currency conversions, returned deposit items, overdraft item paid, overdraft item returned, stop payments, expedited shipping, outgoing domestic wires, and account research. The complete Ally fee schedule can be accessed via their Straight Talk Product Guide (http://www.ally.com/resources/pdf/bank/ally-bank-straight-talk-product-guide.pdf).
Note that overdraft transfer protection, overdraft item paid, and overdraft item returned are three different types of transactions. Overdraft transfer protection is when an Ally Savings or Money Market account is linked to the Interest Checking account to prevent overdrafts. If an overdraft is incurred with a linked account, Savings or Money Market funds will be transferred in $100 increments to the Interest Checking account to cover any overdraft purchases. This service is provided without a fee.
If an Online Savings or Money Market account is not linked to the Interest Checking account and an overdraft is incurred via a purchase, Ally may decline the purchase or process it. If Ally decides to process the purchase, an overdraft item paid fee will apply.
When a check or alternate method of payment is returned due to insufficient funds in the Ally Interest Checking account, an overdraft item returned fee will apply. If multiple overdraft item paid or returned charges are incurred in the same day, Ally will charge the $9 fee only once that day (fee amounts are subject to change, please see the Ally website for the most current information).
24/7 Live Customer Support
Although Ally does not have any physical branches, their phone and chat support is excellent. Live support is available 24/7 to address any questions or concerns. A useful feature is the wait time estimate posted on their website, which is rarely over a minute. Ally support is helpful and knowledgeable about their products, and willing to assist with any problems one may have.
Debit MasterCard with Reimbursed ATM Fees
Each Ally Interest Checking account comes with a free debit MasterCard for each account holder. Ally does not charge any ATM fees, and will reimburse all fees charged by other banks at the end of each monthly statement cycle. Receiving cash back at grocery stores, gas stations, or super stores will also not incur any withdrawal charges. As Ally does not have any physical branches, one is not limited to Ally-branded ATMs and can access over 400,000 ATMs for free throughout the United States.
Easy Online and Mobile Access
Ally has an easy-to-use website with lots of features. Aside from checking balances, one can easily make deposits, access old statements, pay bills, initiate transfers, and send money.
Ally allows free transfers between Ally accounts, non-Ally accounts, and sending money to other people using their PopMoney service. PopMoney, similar to PayPal, allows money to be sent to non-Ally Bank users for free using an email address, phone number, or bank account information.
Deposits are easy with Ally’s eCheck Deposit service. Checks can be deposited with a scanner on ally.com or using a smartphone camera with the Ally app (available for iPhone, Android, and Windows Phone 8). For deposits made before 4 pm EST on business days, $200 will be available the next business day, $4,800 will be available on the second business day, and amounts over $5,000 will be available on the fifth business day. Note that Ally does not accept cash deposits, which may be a problem for some users.
Free Checkwriting Privileges
Ally offers free unlimited checks, deposit slips, and postage-paid deposit envelopes. These will be included in the initial welcome package when a new account is opened, and should be received along with the debit card. Reorders can be requested whenever needed, and each reorder should arrive within 10 business days.
Interest-Bearing
Ally is known for offering comparatively high interest rates on their Interest Checking accounts. At the time of publication, Ally offers 0.10% APY on daily balances under $15,000 and 0.60% APY for daily balances over $15,000. Please note that these rates are variable and are subject to change.
Overview
The only downside for the Ally Interest Checking account is depositing funds. Cash deposits are not accepted due to the nature of online banking, and the processing of eCheck deposits can take up to 5 business days to complete if individual checks are deposited over $5,000. If a few business days of deposit float time are acceptable, or direct deposit (which is processed the same business day) is available, Ally Bank is an excellent choice for an online checking account. It offers high interest rates compared to other banks, reimburses ATM fees, has no minimum balance and no monthly maintenance fees, and easy online and mobile access.
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