So in my previous post about my different bank accounts, I mentioned that I had an online bank for all my savings accounts. These accounts are with Ally Bank. Here is my review of the bank and why they are a great option if you are really trying to save.
Ally Bank is an online bank that I have been using for several years. They offer auto loans, checking, and savings accounts. They also offer CDs and IRAs as other savings options. An online bank is not for everyone. Some people are uncomfortable with the idea of not having a physical bank to visit and you do have to be a little more tech savvy to have an account.
Here are the pros and cons of this bank.
- No maintenance or ATM fees! – This is one of the best things about this bank. They do not charge overdraft fees, if you have a savings account with them, and they don’t charge ATM fees! That is a big one, since there are no Ally Bank ATMs. If you need to use an ATM the fee is initially charged to your account, but all the fees are refunded at the end of your bank statement cycle. In general, your everyday banking activities are free.
- Remote check deposit – A lot of banks are starting to do this now, but Ally has been doing this for a while. You can deposit checks with your mobile phone.
- 24/7 LIVE customer service (plus chat!) – Their customer service is very friendly and always available when you have questions.
- Free PopMoney payments – you can pay other people for free from your account.
- Free transfers to/from other banks and between accounts – There is a limit on the number of withdrawals per month, but there is an unlimited amount of deposits. My other bank charges for this service so I always move my money through my Ally account.
- High rates – as I mentioned in my other post…Ally has great rates. Currently 1.00% APY for savings and 0.10% APY for checking.
- Free checks.
Cons: (there aren’t many)
- Cash deposits – this can be an issue. If you make a lot of cash deposits this can be an issue. With Ally you have to mail in your deposit since there is no physical bank
- Tech savvy – you do have to be a little tech savvy to use your account. Most of what you do is online, so you have to be comfortable using the computer to do your banking. Of course you can call customer service if you have questions.
Ally is a great option for saving because of its higher rates (meaning you are earning money…even when your cash is just sitting in the bank). Also you are able to keep more of your money with fewer fees.
Good luck saving!