Ally Bank's Checking Account: What It Is

Yes, Ally Bank offers a checking account called the Ally Bank Checking Account. It is a no-fee account with no minimum balance requirement, meaning you do not have to keep a certain amount of money in it to avoid charges. You can open it entirely online, and you get a debit card to use at ATMs and stores.

The account comes with features you would expect from a checking account: the ability to write checks, set up direct deposit, pay bills online, and transfer money to other banks. Ally does not have physical branches, so all banking happens through their website, mobile app, or by phone.

Key Takeaways

  • Ally's checking account has no monthly fees, no minimum balance, and no overdraft fees if you stay within your balance.
  • You can deposit checks using your phone's camera through the mobile app, and you receive a debit card for ATM and store purchases.
  • Ally does not have its own ATM network, but you can use ATMs from Allpoint and MoneyPass networks without paying a fee.
  • The account earns a small amount of interest on your balance, which is unusual for checking accounts and means your money grows slightly over time.
  • You must open the account online; there are no Ally Bank branches to visit in person.

How to Deposit Money Without a Branch

Since Ally has no physical locations, you deposit checks using your phone. The Ally mobile app lets you photograph the front and back of a check, and the bank deposits it into your account. This usually takes one to two business days.

You can also set up direct deposit, which is when your employer or a government agency sends your paycheck straight to your account. This is the fastest way to get money in. If you need to deposit cash, you can transfer it from another bank account you own, or you can use a third-party service like PayPal or Square Cash to move money in.

ATM Access and Fees

Ally does not run its own ATMs, but the checking account gives you fee-free access to ATMs in the Allpoint and MoneyPass networks. These networks include ATMs at grocery stores, convenience stores, and other locations across the United States. You can find a participating ATM using the Ally mobile app.

If you use an ATM outside these networks, Ally will not charge you a fee, but the ATM owner may charge you. Some ATMs charge $2 to $3 per withdrawal. To avoid this, use the app to locate a free ATM before you withdraw.

Interest on Your Checking Balance

Most checking accounts do not pay interest, but Ally's does. The interest rate changes based on market conditions and is not high — it may be less than one percent per year — but it means your money earns a small return just by sitting in the account. The interest is added to your account monthly.

This feature is one reason some people choose Ally checking over a traditional bank's checking account. If you keep a larger balance, the interest adds up over time, even if slowly.

Overdraft Protection and Fees

If you spend more money than you have in your account, Ally will not automatically cover the overage and charge you an overdraft fee. Instead, the transaction will be declined. This means you cannot accidentally spend money you do not have and face a penalty.

You can set up a link to a savings account at Ally, and if you overdraft, money will transfer automatically from savings to checking to cover it. This transfer is free. If you do not set this up and you try to spend more than your balance, the purchase straightforward will not go through.

How Ally Checking Compares to Traditional Banks

A traditional bank's checking account usually has a monthly fee (often $5 to $15) unless you meet requirements like keeping a minimum balance or setting up direct deposit. Ally's account has no fee and no minimum, which saves money over time.

The trade-off is that you cannot walk into a branch to deposit cash or speak to someone in person. If you prefer handling banking online and do not need to deposit cash often, Ally checking works well. If you need in-person service or frequent cash deposits, a local bank or credit union may be a better fit.

Opening an Ally Checking Account

You open the account on Ally's website or mobile app. You will need your Social Security number, a government-issued ID, and proof of your current address (like a utility bill or lease). The process takes about 10 minutes.

Once approved, your debit card arrives in the mail within 7 to 10 business days. You can use your account before the card arrives by setting up transfers or direct deposit. If you need the card sooner, you can request expedited shipping for a fee.

Frequently Asked Questions

Can I write checks with an Ally checking account?

Yes. Ally sends you a checkbook when you open the account, and you can order more checkbooks free through the app or website. Checks clear the same way they do at any other bank.

What happens if I need to deposit cash?

Ally does not accept cash deposits directly. You can transfer cash from another bank account you own, or use a service like PayPal or Square Cash to move money in. Some people deposit cash at their local bank and then transfer it to Ally.

Is my money safe at Ally Bank?

Yes. Ally Bank is a federal bank and your checking account is insured by the FDIC (Federal Deposit Insurance Corporation) up to $250,000. This means if the bank fails, the government protects your money.

Can I use my Ally debit card everywhere?

Yes. Your Ally debit card works at any store, restaurant, or online retailer that accepts Visa debit cards. You can also use it to withdraw cash at any ATM, though you will pay a fee if the ATM is outside the Allpoint or MoneyPass networks.

What if I have a problem with my account?

You can contact Ally customer service by phone, email, or through the app. Ally does not have branches, but phone support is available seven days a week. You can also mail documents or checks to their address if needed.