Ally does not require a minimum opening deposit or a minimum balance to keep your checking account open
You can open an Ally checking account with any amount of money, including $0. Once the account is open, Ally will not close it or charge you fees if your balance drops below a certain threshold. This is different from many traditional banks, which impose monthly maintenance fees or require you to maintain $500, $1,000, or more to avoid charges.
The lack of a minimum balance requirement means you can use an Ally checking account as a secondary account—perhaps to receive a single direct deposit or to hold money temporarily—without worrying that low balances will trigger fees or account closure.
Key Takeaways
- Ally checking accounts have no minimum opening deposit and no minimum balance requirement to keep the account active.
- Your account will not be closed and you will not be charged fees if your balance falls to zero or stays very low.
- You can use Ally checking as a secondary account without maintaining a specific dollar amount.
- Some Ally account features, like debit card access or transfers, work the same way regardless of your balance.
What happens if your balance goes to zero
If your Ally checking account balance reaches $0, the account remains open and active. You can still receive deposits, make transfers, and use your debit card once funds are available again. Ally will not charge you a monthly maintenance fee, an inactivity fee, or any penalty for carrying a zero balance.
The only practical limitation is that you cannot withdraw money or make purchases if there is nothing in the account. If you attempt a transaction when the balance is zero, that transaction will be declined. You will not incur an overdraft fee because Ally does not offer overdraft protection on checking accounts.
How Ally makes money without minimum balance fees
Banks that waive minimum balance requirements typically earn revenue from other sources. Ally, as an online-only bank, has lower overhead costs than brick-and-mortar branches. The bank makes money primarily from interest on loans and mortgages, and from the interest rates it pays on savings products like high-yield savings accounts and money market accounts.
Because Ally does not maintain physical branches, it can afford to offer checking accounts without minimum balance requirements and without monthly maintenance fees. This business model is common among online banks, which compete on convenience and low fees rather than on branch location.
Comparing Ally checking to accounts with minimum balance requirements
| Feature | Ally Checking | Traditional Bank Checking (typical) |
|---|---|---|
| Minimum opening deposit | None | $25 to $500, varies by bank |
| Minimum balance to avoid fees | None | $500 to $2,500, varies by bank |
| Monthly maintenance fee | None | $5 to $15, waived if minimum met |
| Overdraft fees | None (no overdraft protection) | $25 to $35 per overdraft, varies by bank |
| ATM access | Ally reimburses out-of-network ATM fees | Varies; may charge fees at non-network ATMs |
When a low balance might matter for other reasons
While Ally will not charge you for a low balance, there are practical reasons to keep some money in your checking account. If you use your debit card regularly, you need funds available to cover purchases. If you have automatic bill payments set up, you need enough to cover those payments when they are due.
Additionally, if you receive regular direct deposits—such as a paycheck—and you want to transfer money to savings or other accounts, you may want to keep a small buffer to avoid the situation where a transfer goes through but a deposit has not yet arrived. A buffer of $50 to $100 is common practice, though Ally does not require it.
How to open an Ally checking account with no minimum
The process takes about 10 minutes online. You will need to provide your Social Security number, date of birth, address, and employment information. Ally will verify your identity and check your banking history through ChexSystems, a database that tracks checking account activity at other banks.
Once your account is approved, you can begin using it when ready. You can set up direct deposits, link external accounts for transfers, and order a debit card. The debit card typically arrives within 7 to 10 business days. You do not need to make an initial deposit to complete the account opening, though you will need to deposit money before you can use the account for transactions.
Frequently Asked Questions
Can I keep an Ally checking account open if I never use it?
Yes. Ally does not close accounts for inactivity. You can open an account, leave it with a zero balance, and return to it months or years later. The account will still be there and ready to use. However, Ally may eventually close accounts that show no activity for an extended period, though the bank does not publicly specify an exact timeframe.
Will Ally charge me if my account goes negative?
Ally does not allow accounts to go negative. If you attempt a transaction that would overdraw your account, the transaction will be declined. There is no overdraft fee because the transaction straightforward does not go through. You cannot spend money you do not have.
Do I need a minimum balance to use Ally's debit card?
No. Once your account is open and funded, you can use your debit card regardless of how much money is in the account. You can only spend what is available, but there is no minimum balance requirement to set up or use the card.
What if I want to move money between Ally and another bank?
You can transfer money between your Ally checking account and external accounts at other banks at any time, regardless of your balance. Transfers typically take 1 to 3 business days. You do not need to maintain a minimum balance to set up or use these transfers.
Does Ally charge any fees on checking accounts?
Ally checking accounts have no monthly maintenance fees, no minimum balance fees, and no overdraft fees. Ally does charge fees for certain services, such as wire transfers ($15 outgoing) or stop payments ($25), but these are only charged if you use those specific services. Standard checking features like debit card use, transfers, and bill pay are free.