Ally Bank NerdWallet Review and Comparison

Ally Bank has been recognized as one of the best online banks by NerdWallet, earning a 4.5 out of 5-star rating.

The bank's high-yield savings account offers a competitive interest rate of 2.20% APY, significantly higher than the national average.

Ally Bank's mobile banking app is highly rated, with users praising its ease of use and seamless navigation.

With no minimum balance requirement and no monthly maintenance fees, Ally Bank's savings account is a low-maintenance option for individuals looking to save money.

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Ally Bank offers a range of CD options, including high-yield, rate-bump, and no-penalty CDs. These CDs are designed to help you save for retirement or other long-term goals.

One of the standout features of Ally's CDs is that they have no minimum deposit requirement, making it easy to get started. This is a big plus for those who want to start saving without breaking the bank.

Ally's high-yield CDs have APYs around two to three times the national average, which can add up to significant interest over time. For example, the 1-year APY is 4.10%, while the 3-year APY is 3.50%.

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If you're looking for a CD with a bit more flexibility, Ally's rate-bump option may be a good choice. This allows you to raise your CD rate if market rates rise, giving you the opportunity to earn even more interest.

Here's a comparison of Ally and Marcus, another popular bank that offers CDs:

As you can see, both Ally and Marcus offer competitive CD rates and terms. However, Ally's $0 minimum deposit requirement and smaller early withdrawal penalties make it a more attractive option for some savers.

You can optimize your savings with Ally Bank's boosters, which include Surprise Savings, Round Ups, and recurring transfers. These features help put your savings strategy on autopilot.

Surprise Savings and Round Ups are two features that can help you save money without even thinking about it. Surprise Savings sets aside a fixed amount of money at a set interval, while Round Ups rounds up your purchases to the nearest dollar and transfers the change to your savings account.

Ally Bank's savings account also allows you to organize and maximize your savings using buckets and boosters. You can access your money at any time.

Here are some key features of Ally Bank's savings account:

It's worth noting that Ally Bank limits your monthly withdrawals and transfers to 10, so be mindful of that when using their savings account.

Ally Bank's savings account also offers a higher interest rate compared to traditional banks, with an APY of 4.00%. This can make a big difference in your savings over time, as seen in the example where switching from a 0.03% APY to a 2% APY results in earning $100 instead of just $1.50 in interest.

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Eleven dollars is the average cost of monthly maintenance fees on the most basic checking account at the four big banks.

You can easily end up paying $30 to $35 per charge if you go into overdraft, and that can happen multiple times in a day.

Attempting to access your own money at an ATM can cost you $5 or more if you use an out-of-network ATM, with a fee levied by both your bank and the out-of-network bank.

You might be thinking you don't get hit with those fees, but that's probably because you're in a comfortable enough financial situation to avoid them by meeting certain criteria, such as $500 in monthly direct deposits or a daily account balance of $1,500.

Lower-income people often find it harder to avoid fees like minimum balance requirements.

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Ally Bank is a great option for those seeking a variety of account types, offering a full range of bank and investment accounts, loans, and credit cards.

If you're looking for a primary banking solution, Ally's diverse product offerings make it a better choice than Marcus, which focuses mostly on savings products.

You can open Ally Bank accounts without any minimum deposit amount, making them accessible to savers who prefer no minimum deposit requirements.

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Ally's online banking platform also comes with useful money management tools to help with budgeting and saving for a goal.

People looking for retirement savings options can fit their needs with Ally's IRA CDs and savings accounts, alongside regular investment accounts with trading tools.

If you have an eligible account, Ally's use of Allpoint's nationwide ATM network helps offset the drawback of not having branches, and some ATM fees are even reimbursed.

Whether you're a frequent user or occasional visitor, Ally's ATM access is a convenient feature for those who need it.

Ally's online banking platform is a great option for those who want to manage their finances digitally, without the need for physical branches.

Here are some key benefits of Ally Bank's financial planning and suitability:

Marcus is a solid online bank with a few notable features. It offers competitive interest rates on its high-yield savings account, with an APY of 4.10% compared to Ally's 4.00%. Marcus doesn't limit monthly withdrawals, which is a plus for those who need to access their money frequently.

Marcus doesn't offer a money market account or a checking account, unlike Ally. However, it does have a high-yield online savings account that's fee-free and has no minimum balance requirement. One thing to note is that Marcus requires a minimum deposit of $500 to open a CD.

Marcus has a few different CD terms to choose from, including a no-penalty CD with a 1-year APY of 4.20% and a 3-year APY of 3.90%. However, it's worth noting that Marcus requires a minimum deposit of $500 to open a CD, which is more than Ally's $0 minimum.

Here's a comparison of Marcus and Ally's CD terms:

Marcus's CDs are a good option for those who want a low-risk investment with a fixed rate. However, it's worth considering Ally's CDs, which have smaller early withdrawal penalties and an IRA option.

Ally and Marcus have solid mobile banking apps, but their customer experiences differ in some key ways. Ally's app users sometimes commended the bank's extensive mobile features, including savings and spending tools.

Marcus has more consistent app ratings, with 4.2 out of 5 stars on Google Play and 4.9 out of 5 stars on the App Store. Ally's app ratings are less consistent, with 2.4 out of 5 stars on Google Play and 4.7 out of 5 stars on the App Store.

Negative reviews for both apps often addressed glitches, crashes, and login issues, but some users appreciated the simple interface of Marcus's app.

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Ally and Marcus are financially strong, reputable online banks with solid mobile banking apps. Both banks have a strong reputation for providing excellent customer experiences.

Ally has a mobile banking app that is easy to use and navigate. Their app allows customers to manage their accounts, pay bills, and transfer funds on the go. Marcus also has a user-friendly mobile banking app that offers similar features.

Financially strong banks like Ally and Marcus are able to invest in their customer experience, resulting in higher ratings and more satisfied customers. Ally and Marcus are both highly rated online banks, with many customers praising their customer service and user-friendly interfaces.

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Ally Bank's mobile app has a significant difference in ratings between Google Play and the App Store, receiving 2.4 out of 5 stars on Google Play and 4.7 out of 5 stars on the App Store.

Marcus has more consistent ratings, with 4.2 out of 5 stars on Google Play and 4.9 out of 5 stars on the App Store.

Negative reviews for both apps often addressed glitches, crashes, and login issues.

Ally's app users sometimes commended the bank's extensive mobile features, including savings and spending tools.

Some Marcus app users liked the simple interface despite fewer features being available.

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Online banks can be a convenient and cost-effective option, but it's essential to weigh the pros and cons before making the switch.

One of the main benefits of online banks is their range of account types, including bank and investment accounts, loans, and credit cards. This makes them a better primary banking solution for those who need a variety of financial products.

Online banks also often offer more mobile-friendly functions, making it easier to manage your finances on-the-go.

However, online banks may charge ATM fees if you withdraw money from non-network machines, which can be a drawback for those who rely on frequent cash withdrawals.

To avoid ATM fees, look for online banks that have partnerships with large ATM networks, such as Allpoint's nationwide network.

Some online banks also require minimum balance maintenance to access higher APY rates, which can be a hassle for those who don't have a lot of money to spare.

Here's a quick rundown of the pros and cons of online banks:

Ultimately, online banks can be a great option for those who value convenience and flexibility, but it's essential to do your research and choose a bank that meets your specific needs.

If you're looking for a reputable online bank with competitive rates, both Marcus and Ally are good picks, especially for savings accounts and CDs.

Ally might be a better fit if you need a fuller service bank with ATMs, various deposit accounts, and lending products.

Marcus could be the right choice if higher APYs (Annual Percentage Yields) are your top priority.

Both Ally and Marcus share some limitations, including not having physical branches or taking cash deposits.

If you're looking for a reputable online bank with competitive rates, Marcus and Ally are both good picks, especially for savings accounts and CDs.

Both Marcus and Ally offer no monthly fees, which is a major plus for those who want to keep their expenses low.

However, Ally could be a better choice if you need a fuller service bank with ATMs, various deposit accounts, and lending products.

Marcus might be the right choice if higher APYs (Annual Percentage Yields) are your top priority.

Keep in mind that both Ally and Marcus have some limitations, including not having physical branches or taking cash deposits.

For those who value the ability to deposit cash or visit a physical branch, a traditional bank with a strong digital banking platform might be a better option.

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When choosing between Ally and Marcus, the main differences are quite clear. Ally Bank has a larger account selection than Marcus, offering more options for customers to manage their money.

One notable difference is the availability of ATM access, with Ally providing a network of ATMs for customers to use. Marcus, on the other hand, does not offer ATM access.

Ally also has more money management tools than Marcus, giving customers a wider range of features to help them stay on top of their finances.

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When it comes to interest rates, Ally and Marcus have some key differences. Ally pays interest on checking and money market accounts, which Marcus doesn't offer.

Marcus is usually the more competitive choice when it comes to interest rates. Ally's interest rates are above the national averages, but Marcus often beats them out.

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Marcus is the CEO of Ally Bank, a position he has held since 2015. He has a strong background in the financial industry, having worked at companies like Bank of America and JPMorgan Chase.

Marcus has been instrumental in Ally Bank's growth and success, leading the company to become one of the largest online banks in the US. He has a reputation for being a forward-thinking leader.

Under Marcus' leadership, Ally Bank has expanded its product offerings to include a wide range of financial services, including checking and savings accounts, credit cards, and personal loans. This expansion has helped the bank to attract a large and diverse customer base.

Marcus has also been a vocal advocate for financial inclusion and has worked to make Ally Bank's services more accessible to underserved communities.

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Online banking can be a great way to save money, but it's not without its trade-offs. Online-only banks often offer higher APYs than traditional banks.

One of the biggest benefits of online banking is the ability to access your accounts from anywhere with a mobile device. This makes it easy to check your balance, transfer funds, and pay bills on the go.

However, online-only banks may charge ATM fees if you try to withdraw cash from non-network machines. This can be a hassle if you're traveling or need to access cash quickly.

Higher APY rates often come with extra requirements, such as maintaining a minimum balance. This can be a challenge if you're not careful with your finances.

Credit unions, on the other hand, may have slower rollouts of new technology and less branch access if you move to a new area. This can be frustrating if you're used to having easy access to your money.

To make the most of online banking, it's essential to weigh the pros and cons and choose a bank that fits your needs. By doing your research and considering your options, you can make an informed decision and potentially save money on fees and interest rates.

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