Business Insider's personal finance team compared the Ally Spending Account to the best checking accounts and found it to be an industry leader.
The Ally Spending Account (formerly Ally Interest Checking Account) is a great online checking account that doesn't charge any monthly service fees. It offers early direct deposit, so you can receive your paycheck up to two days early. The bank also reimburses you for ATM fees charged by out-of-network providers.
Overall, Ally is one of the best banks out there.
Ally Spending Account Option
no monthly service fee
0.10% to 0.25%
$0
N/A
Pros
Cons
- You can deposit checks right from your smartphone
- Manage expenses by creating spending buckets
- Ally reimburse's up to $10 per statement cycle for fees charged at other ATMs nationwide
- Transfer money with your voice through Ally Skill™ for Amazon Alexa
- Interest compounded daily, paid monthly
- FDIC insured
The Ally Spending Account is the bank's only checking account option. It offers an interest rate of 0.10% to 0.25% APY. It's an online-only bank account, meaning you can only manage it through online and mobile banking. The bank doesn't have physical branches, and you can't make cash deposits.
Overview of Ally Spending Account
Ally Bank is a banking institution known for operating entirely online and providing loans and deposit accounts.
It offers live 24/7 customer support via phone and online chat. Because it is an online-only bank, you won't be able to get customer support at a physical location.
The Ally mobile banking app has received 4.7 out of 5 stars in the Apple store and 4.5 out of 5 stars in the Google Play store. You can use the app to manage all of your bank accounts.
Ally only offers personal bank accounts. If you're looking for a business checking account or business savings account, you'll need to choose another bank.
Ally Spending Account Key Features and Benefits
Ally Spending Account High-Yield Interest Rate
Unlike many checking accounts, the Ally Spending Account offers interest. You'll receive a 0.10% APY if your balance is under $15,000, and 0.25% if your balance is $15,000 or more. This interest is compounded daily and paid monthly.
An interest-earning checking account can be helpful because it offers greater liquidity than even a savings account with a debit card, since those frequently put limit on how many times you can withdraw money each month.
However, interest-bearing checking accounts tend to earn lower interest rates than savings accounts, and their liquidity can lead to accidentally overspending. If you keep your emergency fund in an interest-bearing checking account, for example, you could accidentally spend money you meant to save for emergencies without thinking.
In comparison, the average interest-earning checking account pays 0.07% APY, according to the FDIC. To see which banks currently pay the highest rates, see Business Insider's picks for the best high-yield checking accounts.
Ally Digital Banking Features
Ally offers multiple online banking features to help you manage your finances.
You can set up online bill pay directly from your account, and you can link the account to Zelle to transfer money directly between your checking account and others' bank accounts. You can deposit checks digitally, but you can't deposit cash.
In addition to offering a savings account with buckets, Ally also offers buckets for its checking account. It has spending buckets to help manage your spending for different categories, like groceries or rent. You can make up to 30 spending buckets at once. You'll still earn interest on buckets; the exact rate will depend on your checking balance.
You can also set up automatic distribution to move money across your buckets after a certain date, such as right after you get your paycheck.
Ally spending buckets are a unique feature that aren't found in most checking accounts. If you are looking for tools to help you budget, then this checking account may be worth exploring.
The bank has early direct deposit, so you may receive your paycheck up to two days early. You can set up to eight early direct deposits per statement cycle, as long as the paycheck amount is a maximum of $10,000.
Ally Federal Insurance
The Ally Spending Account is federally insured by the FDIC. You can keep up to $250,000 per depositor, per account category in the account, and it will be protected in the event of a bank failure.
The FDIC will protect consumer bank accounts and ensure you have access to your insured deposits after the bank collapse. Either your money will be moved to an FDIC-insured bank that acquires the failed bank's assets, or a check will be sent to your home.
Ally Checking Fees and Charges
The Ally Spending Account does not have many common bank fees. It has no monthly service fee, no overdraft fees, and no incoming wire transfers. It also has a $0 minimum opening deposit, so you won't need to put a certain amount of money in the account to open it.
The Ally bank fee you're most likely to run into with an Ally Spending Account is an outgoing wire transfer fee. If you send a wire transfer from your account, you'll need to pay $20 for a domestic wire transfer and up to 1% of the transfer amount for an international wire transfer.
You have access to over 75,000 Allpoint® and MoneyPass ATMs throughout the U.S. If you use an out-of-network ATM provider charges you an ATM fee, the bank will reimburse you up to $10 per month.
Usually, brick-and-mortar banks offer ATM reimbursements to customers with a certain checking account or who maintain a specific balance. If you're looking for one of the best banks to avoid ATM fees, online banks like Ally are more likely to offer monthly reimbursements for ATM fees without having to meet certain requirements.
Ally Spending Account Pros and Cons
Ally Spending Account Pros
- Earn 0.10% APY for daily account balances under $15,000, and 0.25% APY for balances of $15,000 or more
- $0 minimum opening deposit and no monthly service fee
- Large ATM network and up to $10 in ATM reimbursements each month
- 24/7 banking customer support
- No overdraft fees and free overdraft protection
- Spending bucket to manage expenses
Ally Spending Account Cons
- No physical locations
- Can't deposit cash
Ally Spending Account Alternatives
Ally Spending Account vs. Capital One 360 Checking
Neither Ally nor Capital One 360 Checking charges users monthly fees to maintain a checking account. Both companies allow you to connect with Zelle, and both make it easy to deposit checks digitally.
Capital One does have physical branch locations (although they are limited). If there's a branch near you, you may prefer Capital One if you like in-person banking.
If you want an interest-earning checking account, you may prefer to go with Ally, since Capital One 360 Checking does not offer interest.
Capital One offers several options for overdraft protection. You may choose to transfer money from your savings or money market account (like you would with Ally), settle for having your purchase denied, or no-fee overdrafts. No-fee overdraft is a service where Capital One approves check payments, bill payments, or recurring debit payments, even if it would create a negative balance for your account. To qualify, you'll need to receive at least $250 in direct deposits during two of the three previous months.
At Ally, you can link your checking account to another account or sign up for CoverDraft. CoverDraft will allow you to overdraw up to $100 ($250 if you have direct deposit set up), and you'll have 14 days to restore your account balance without paying any overdraft fees.
Capital One does provide access to ATMs, but unlike Ally, the bank doesn't reimburse out-of-network ATM fees. Capital One also isn't known for having customer service as strong as Ally.
Ally Spending Account vs. Chime Checking
Both Chime® and Ally are online-only banking institutions. Both offer conveniences like mobile check deposit and early direct deposit.
However, Ally has an interest-earning checking account, while Chime® Checking Account doesn't pay interest on its checking account.
Opening an Ally Spending Account
Setting up an Ally Spending Account online is relatively quick. What you need to open a bank account includes your full name, occupation, contact information, and address. You must be at least 18 years old and use a Social Security number to open bank accounts.
Opening a checking account doesn't require an opening deposit or a minimum account balance. However, once you make a deposit, it will take a few business days for any money you transfer from an external bank account to appear in your Ally checking account.
Is the Ally Spending Account Right for You?
You may like the Ally Spending Account if you prefer to do all your banking with one institution. You can also open a high-yield savings account, money market account, and CD with the bank.
The bank is also one of the best banks for avoiding overdraft fees. In 2021, the bank eliminated overdraft fees on all accounts.
If you set up a savings or money market account with Ally, you can request free overdraft protection. When you overdraw your checking account while enrolled in this service, the money is automatically transferred from your savings or money market account. This way, you won't risk your transaction being denied.
This account is good for people who don't have a problem banking digitally. There are no physical branch locations, so if you're happy doing everything online, through an app, or over the phone, you may find the spending account is right for you.
Why You Should Trust Us: How We Reviewed the Ally Spending Account
For our Ally Spending Account review, we used our checking account methodology. At Business Insider, we rate products on a scale from one to five stars. We also compare and contrast the features and fine print of various products to help determine if the account may be right for you. Our checking methodology, specifically, takes into account the minimum opening deposit, monthly service fees, overdraft protection options, ATM network/fees, customer support availability, mobile app ratings, miscellaneous features, and security and ethics of a company.
We use a weighted average to get our star rating, which means we weigh certain features, like interest rates and fees, at a higher weight percentage than others. We understand that these areas can more heavily impact a person's overall banking experience.
Ally Spending Account FAQs
Are there any fees associated with Ally Spending?
The Ally Spending Account has a $20 outgoing domestic wire transfer fee, a $15 stop payment fee, and an international transaction fee of up to 1% of the transaction amount.
Can I deposit cash into my Ally Spending Account?
You cannot deposit cash directly into the Ally Spending Account. If you need to deposit cash into your account, you'll have to deposit money into an external bank account that accepts cash deposits and make a transfer to your Ally Spending Account. That may take a few business days to process.
How does Ally's mobile app enhance the checking account experience?
The Ally mobile app allows you to monitor your bank account balance, make mobile check deposits, and create spending buckets to help manage your expenses.
Is Ally Spending a good option for people new to online banking?
Ally has an excellent online checking account with minimal bank fees. Ally stands out as one of the best banks for avoiding overdrafts because it has several free overdraft protection plans.
How can I get early direct deposit on my Ally Spending Account?
If you have already set up direct deposit and received at least two qualifying direct deposits, you'll automatically qualify for early direct deposit. If you don't have direct deposit yet, you'll need to talk to your employer about setting up direct deposit. Once you've received two qualifying direct deposits, you may qualify for early direct deposit.
Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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Chime® Disclosures:
Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.
Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.
Early Pay: Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
The Annual Percentage Yield ("APY") for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.
Round Up: Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up from your Chime Checking Account to your savings account.
SpotMe® on Debit is an optional, no fee overdraft service attached to your Chime Checking Account. To qualify for the SpotMe on Debit service, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account each month and have activated your physical Chime Visa® Debit Card or secured Chime Credit Builder Visa® Credit Card. Qualifying members will be allowed to overdraw their Chime Checking Account for up to $20 on debit card purchases and cash withdrawals initially but may later be eligible for a higher limit of up to $200 or more based on Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Debit limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime's sole discretion. Although Chime does not charge any overdraft fees for SpotMe on Debit, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe on Debit will not cover any non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. SpotMe on Debit Terms and Conditions.
Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.
The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.
On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.
Qualifying Direct Deposit: The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.
Save When You Get Paid: Save When I Get Paid automatically transfers 10% of your direct deposits of $500 or more from your Checking Account into your savings account.
Once the retailer accepts your cash, the funds will be transferred to your selected Chime Account. Barcode and debit card cash deposits land in the Checking Account. Credit Builder card cash deposits first go through your Card Account and then land in your Secured Account. Cash deposit fees may apply if using a retailer other than Walgreens and Duane Reade.
Tax e-file services provided by April Tax Solutions Inc. ("april") or Column Tax, Inc. ("Column Tax"). These tax filing offers are not endorsed or offered by our partners, The Bancorp Bank, N.A. or Stride Bank, N.A.
Maximum refund guarantee is provided by april or Column Tax. If you use april's service to prepare and file your return and you find an error in the tax preparation that entitles you to a larger refund (or smaller liability), you may use their service to amend that return at no additional charge. To qualify, the larger refund or smaller tax liability must not be due to differences or inaccuracies in data supplied by you, your choice not to claim a deduction or credit, positions taken on your return that are contrary to law, or changes in federal or state tax laws. See here for details. If you use Column Tax's service, Column Tax will reimburse you for up to $250 if you are able to pay less federal or state income tax or receive a larger federal or state income tax return by using another tax return preparation provider. Eligibility requirements apply. See terms for details.
If the april tax preparation software makes a mathematical error that results in your payment of a penalty and/or interest to the IRS that you would otherwise not have been required to pay, april will reimburse you up to a maximum of $10,000. See april terms for details. If interest and/or a penalty is imposed by the IRS as a result of a computational error by Column Tax, you may be entitled to up to $10,000 reimbursement by Column Tax. See Column Tax terms for details.
There are no fees required to use this product. Chime does not require you to deposit your refund into your Chime Account to qualify for free tax filing. Certain costs may be incurred if you decide to obtain other optional financial products offered in relation to your tax filing. The Internal Revenue Service (IRS) may impose penalties or other charges depending on your personal tax situation. If the april tax preparation software makes a mathematical error that results in your payment of a penalty and/or interest to the IRS that you would otherwise not have been required to pay, april will reimburse you up to a maximum of $10,000. See april terms for details. If interest and/or a penalty is imposed by the IRS as a result of a computational error by Column Tax, you may be entitled to up to $10,000 reimbursement by Column Tax. See Column Tax terms for details.
Chime does not guarantee timing of refund. Six day refund estimate is based on 2023 tax year filing data. Refund timing estimates are dependent upon timing of complete tax return submission and when the IRS submits your refund.
***The Annual Percentage Yield (APY) is accurate as of 04/01/2025. The base and promotional interest rate and corresponding APY for Axos ONE Checking is variable and is set at our discretion. The base and promotional interest rate and corresponding APY for Axos ONE Savings is variable and is set at our discretion. Axos ONE Savings is a tiered variable rate account. Axos ONE Checking is a non-tiered variable rate account. Interest rates may change as often as daily without prior notice. Fees may reduce earnings. Promotional terms and conditions are subject to change or removal without notice. Incentive may be taxable and reported on IRS Form 1099-MISC. Consult your tax advisor. After the accounts are opened, the amount of incentive earned will depend on meeting the additional requirements outlined below. The Axos ONE Checking account will earn a base rate of 0.00% APY. The Axos ONE Savings account will earn a base rate of 1.00% APY. Axos ONE accounts are eligible to receive a promotional APY for each statement cycle where the promotional criteria are met during the Qualification Period. To receive the promotional APY on both Axos ONE Checking and Axos ONE Savings, the Axos ONE Checking account must meet both of the requirements in either Option 1 or Option 2 below during the Qualification Period: Option 1 1. Your Axos ONE Checking account has received qualifying direct deposits of at least $1,500 in total. 2. The average daily balance of your Axos ONE Checking account is at least $1,500. Option 2 1. Your Axos ONE Checking account has received qualifying deposits of at least $5,000 in total. 2. The average daily balance of your Axos ONE Checking account is at least $5,000. If both of the requirements in either Option 1 or Option 2 above are met during the Qualification Period: The Axos ONE Checking account will earn a promotional rate of 0.51% APY for the statement cycle in which the requirements are met. The Axos ONE Savings account will earn a promotional rate of up to 4.66% APY for the statement cycle in which the requirements are met. The Qualification Period is from the 1st of the month through the 25th of the month. The Qualification Period for new accounts will begin on the day the account is approved. Any qualifying direct deposits received after the 25th of the month will count toward the next Qualification Period. A direct deposit is an electronic deposit of your paycheck or government benefits, such as Social Security, Disability, etc. Other deposits (i.e., online banking transfers, ATM and mobile check deposits, etc.) or person-to-person payments are not considered a direct deposit. Qualifying deposits only include deposits from the following eligible sources: (i) ACH transfers from external accounts, (ii) inbound wire transfers from external accounts, (iii) check deposits. Qualifying deposits do not include: (i) transfers internal to the bank (i.e., transfers between an account holder's Checking and/or Savings account), (ii) interest payments, (iii) promotional bonuses, (iv) credits, reversals, and refunds. Both accounts must be in an open and active status on the date the interest is paid to receive the promotional APY for that statement cycle. Account transactions may take one or more business days from the transaction date to post to the account.
