Today’s topic is about Ally Bank. I use JPMorgan Chase Bank as my main bank and use Ally Bank as my second bank. I think in case of choosing the main bank, location is the most important factor. For example, I like the bank which is closest to home or close to work. So, I will omit to talk about main bank at this time, and would like to introduce Ally Bank.
- 1. Why Ally Bank is Amazing
- 2. Points to note in Ally Bank
1. Why Ally Bank is Amazing
1.1 Not Charging Account Maintenance Fee
There is no minimum deposit requirements. Therefore, there is no account maintenance fee. It does not matter even if the account balance becomes $0.
1.2 Reimbursing ATM Fee (Up To $ 10 per Month)
Since Ally is an online bank, they do not have their own ATM networks. However, it is free to use Allpoint ATM which are located everywhere such as at Target, Duane Read, Walgreen, CVS Pharmacy, MacDonald. etc.
In addition, customers of Ally Bank can use ATM of other banks. Ally Bank does not charge fees for Ally Bank customers for using ATMs of other banks. Also, although it is likely that other banks (owners of ATM) will charge you fees such fees will be reimbursed from Ally Bank up to $ 10 per month.
I found it is very convenient for having such flexibility when I am traveling to other states, especially when my main bank (Chase Bank) does not have ATM in the states where I am travelling.
You can find Allpoint ATM not only in the United States, but also in Canada, Puerto Rico, the United Kingdom, Mexico, and Australia. As long as Allpoint ATM is used, you will not charged ATM fees from Ally Bank even outside of the US. However, regardless of which ATM network you use, you will be charged 1% of withdrawal amount will be collected separately as currency conversion fees. Also, please bear in mind that reimbursement of ATM fees does not apply ATMS for overseas.
For more information is here. Ally Bank: ATMs & withdrawals FAQs
1.3 Offering Anti-Virus Software for Free
Although it is not wildly known (probably because it is not actively advertised), Ally Bank offers free antivirus software called Webroot® SecureAnywhere™ Antivirus software to its customers. You do not need to renew every year, and once the anti-virus software was downloaded, it will be renewed automatically every year.
Click here if you are interested. https://www.ally.com/learn/webroot/
1.4 Offering High Interest Rate
I can imagine that most people who are considering to open or opened an online bank account, including but not limited to Ally Bank, are attracted by the high interest rate.
In case of Ally Bank, interest rates on saving account are 2.2% and interest rate for Certificate of Deposits are 0.75 to 3.0% (depending on the maturity) as of the end of April 2019.
For more information, please check out my post.
1.5 Higher Limit for eCheck Deposit
There are 5 ways to deposit money into Ally Bank: (1) designate Ally Bank for direct deposit of salary, (2) ACH transfer from another bank, (3) Wire Transfer, (4) send a check to Ally Bank’s designated office, and (5) eCheck Deposit.
Those people use Ally Bank as a second bank, like myself, the ACH transfer in (2) is most convenient method. But eCheck deposit in (5) is also convenient, which can be done by taking pictures of the check and uploading them using the Ally Bank smartphone application. If you do not have a smartphone, it is also acceptable to scan a check and upload it from your computer.
The great thing about Ally Bank is that the eCheck Deposit limit is very high and you can deposit up to $ 50,000 per day (there is a limit of $ 250,000 every 30 days).
Reference: Ally Bank: Deposit Q & A
For your reference, in the case of Chase Bank, the maximum deposit limit from smartphones is $ 2,000 per day, and it has a limit of $ 5,000 for every 30 days. It does not mean limit set by Chase Bank is particularly low compared to other banks, but rather it means Ally Bank’s upper limit is high compared to the industry standard.
2. Points to note in Ally Bank
2.1 Cash Can not Be Deposited from ATM
This might be a defects of any online banks, but ATMs can be used only for withdrawing cash, and can not be used for depositing cash or check.
2.2 Money Order Needs to be Mailed for Deposit (No eCheck Deposit).
We rarely receive money orders, so, we do not have chance to deposit money order. In this sense, it might not really matter, but one thing I wanted to draw your attention is that we cannot deposit money orders to Ally Bank using Smartphone. Of course, we can mail it to Ally Bank.
2.3 Withdrawal overseas
As mentioned above, if you withdraw cash from any overseas ATM, we will be charged for currency conversion fees which are equivalent to 1% of the amount withdrawn. Some banks collect 3% rather than 1%. In this sense, 1% sounds reasonable, but if you look around, you can find banks which does not charge currency conversion fees at the time of withdrawal. So, if you frequently withdraw money from ATMs overseas, please keep this in mind.
I am a Japanese, residing in the US. I am trying to find a way to earn stable income at home through investments in stocks or other products as well as some sort of internet business. ▶ More detailed profile can be viewed from here.
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