Ally Bank Review: Checking, Savings and CDs - NerdWallet (2024)

FAQs

Is it safe to buy a CD from Ally Bank? ›

Are Ally Bank CDs FDIC-insured? Yes, Ally Bank is FDIC-insured (FDIC No. 57803).

Cons No cash deposits: Ally doesn't accept cash deposits for any of its accounts. No branch access: Since Ally Bank is only online, you won't be able to manage your account in person.

Is Ally a safe bank? Your money is safe with Ally Bank because it is FDIC-insured. This means that your funds in Ally deposit accounts are insured up to $250,000 per person, per ownership category if the bank goes out of business.

Which Bank Gives 7% Interest Rate? Currently, no banks are offering 7% interest on savings accounts, but some do offer a 7% APY on other products. For example, OnPath Federal Credit Union currently offers a 7% APY on average daily checking account balances up to and under $10,000.

Introduced in 1933 during the Great Depression, the FDIC continues to serve as a way to insure Americans' bank deposits in case of bank failure — ultimately guaranteeing the money stays in their possession. As an Ally Bank customer, your deposits are FDIC-insured up to the maximum allowed by law.

The FDIC Covers CDs in the Event of Bank Failure

But the recent regional banking turmoil may have you concerned about your investment in case of a bank failure. CDs are treated by the FDIC like other bank accounts and will be insured up to $250,000 if the bank is a member of the agency.

Key Points. Ally Financial has weathered the volatility that has plagued many regional banking stocks since last year. The auto-focused lender saw a slowdown in business amid higher interest rates and an uptick in delinquencies. The bank could benefit from lower interest rates in the second half of 2024.

Stable Funding and Liquidity: Since the pandemic, Ally's gross loans to deposits improved to 90%, with deposits at 87% of funding vs. 75% pre-pandemic, providing headroom in its rating category. Ally's deposit balances grew in the Spring 2023 flight to quality, with 92% FDIC-insured.

Ally Bank is a member of the Federal Deposit Insurance Corporation (FDIC). The FDIC protects your Ally Bank deposits up to $250,000 per depositor for each qualifying account ownership category.

They're FDIC insured so there's zero risk for Ally customers unless you go over the insurance limit or are the weak link resulting in your own account breach and compromise.

What is the risk rating for Ally Bank? ›

Ally Bank operates online and offers checking accounts, savings accounts, money market accounts, certificates of deposit, credit cards, mortgages, auto loans and investment products. Ally had $186.1 billion in assets as of Dec. 31, 2023, ranking it No. 21 among American banks.

Can You Get a 7% CD Account? There was a lot of excitement in August 2023 about a few credit unions offering 7% APYs on certificates. But those rates were offered for a limited time only and are no longer available. However, the nation's best CD rates are still well above 5%, with some pushing toward 6%.

As of May 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.

CDs from online-only banks can be just as safe as CDs from brick-and-mortar banks, as long as the online bank is federally insured and takes basic security measures.

Ally Bank is a member of the Federal Deposit Insurance Corporation (FDIC). The FDIC protects your Ally Bank deposits up to $250,000 per depositor for each qualifying account ownership category. This means you can rest assured that your deposits are safe up to FDIC limits, no matter what's happening in the economy.

As long as you open a CD with a financial institution that's insured by the FDIC or the NCUA, your CD is protected up to $250,000 per person, per account category in case of a bank failure. That means you won't lose your deposit or interest earned (up to the insured amount) if the bank unexpectedly closes.

The biggest risk to CD accounts is usually an interest-rate risk, as federal rate cuts could lead banks to pay out less to savers. 7 Bank failure is also a risk, though this is a rarity.