Online-only consumer banking
Ally Bank
Last updated:
Nov 15, 2024
Provided by
Ally Financial, Inc.
Life Admin Area
Personal finance
Ally is an online-only bank that has consistently offered consumer-focused value over the last 15 years. Because they don't have local branches, they can afford to have few fees and pass higher interest to their customers. AllyĀ Bank is supported by a large auto loan business and also offers integrated investing that isn't rife with conflicts of interest the way some other bank-led investment solutions are.
Because Ally committed to offering digital solutions soon after the 2008 financial crisis, they've consistently offered easy-to-use banking user experiences with top-rated call-in support.Ā They're satisfactory for saving time and energy if you're ready to do all your banking online. What sets them apart is that they achieve their level of service while also offering high interest and low fees.
They won't save you on life admin if you need the support of a local branch, which you might if you run a business.
Normal banks are chartered by a state or federal government, but neobanks arenāt ā they are tech platforms that partner with banks or intermediaries to offer banking services, which means there are some detailed caveats to how they manage your money.
Financial advisor platforms are tech companies that offer access to calls with financial advisors, often CFPĀ® professionals, which is one way of knowing they are bound to act in your best interest and disclose any conflicts of interest.
It has consistently offered high rates while being an actual bank, no matter the interest rate environment. Ally has faced steeper competition from high-yield savings options offered by non-banks in recent years.
The last 20 years have produced multiple forms of online banking services. We put Ally on our list because of the balanced set of consumer-focused features they offer while operating as a chartered bank. Some competitors are not official banks, which can have technological advantages over other old-school banks, but not Ally. The three key reasons to consider Ally over alternatives are...
Chime isn't quite a bank ā it's an online fintech platform that provides banking services through partners. They offer high interest rates and allow limited overdrafts, but in general, because they aren't a bank, they are missing some of the services offered by a more established online bank.
Also reviewed on Wayshaping ->Capital One is a longstanding online bank with a heavy focus on credit card offerings. While they have best-in-class online banking, Capital One has a long history of pairing their banking services with offerings that incentivize spendingācredit cards and their digital rebates app, Capital One Shopping. Those incentives take the focus off helping users grow their long-term wealth and financial stability.
Also reviewed on Wayshaping ->Varo Bank is the first fintech platform to be given a bank charter, affording it direct FDIC insurance and other bank-level regulations. While it's status as a bank can be trusted and they offer high interest rates, users have to be more hands-on with Varo because it does not allow overdrafting, and instead focuses on offering cash advances (up to $500), which takes time and costs money.
Also reviewed on Wayshaping ->