Ally Credit Card CashBack Review and Application

  -Ally Credit Card – 

Are you a customer of Ally Bank, and would love to know the perks and downsides, or even more, the complete review of Ally Cashback Credit Card? Then this article is for you. 

Ally Bank is an Online Banking Institution, where you get the ease of doing all banking operations from your convenience, without going to the bank.

To find out about Ally Credit Card’s comprehensive review, and the ratings on their services, please read this article to the end, so you don’t miss out on any details.

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Overview of Ally Credit Card

The Ally CashBack Credit Card from TD Bank is a cashback rewards card that saves you money on everyday purchases.

The card earns 2% back on both gas and grocery purchases, and 1% back on all other purchases. This 2% savings, however, may be reduced for fill-ups or grocery buys at warehouse stores like Costco or Sam’s Club.

The card also features no annual fee, as well as 0% introductory APR on balance transfers for the first 12 months.

Best for those who:

  • Don’t want to pay an annual fee
  • Plan to use Ally Bank for other savings or checking products
  • Want to earn 2% cashback on both gas and groceries
  • Don’t shop at warehouse stores

How to Apply for the Ally CashBack Credit Card

To apply for this card, you must be at least 18 years old in most states, 19 years old if you live in Alabama or Nebraska and 21 years old if you live in Mississippi.

  1. Head over to the Ally website and click Apply now. You’ll be taken to a third-party website.
  2. Complete the application with your personal and financial details, such as your full name and date of birth, Social Security number, occupation, annual gross income, employment information, and your address and residential information.
  3. Review your information and submit your application.

What Credit Score Do I Need?

Consider applying for this card with a good to excellent credit score of 670 to 850. If you have better credit, you’re more likely to be rewarded with a higher credit limit and lower APR.

Ally CashBack Credit Card Benefits

Ally CashBack Credit Card Benefits

  • No annual fee. Ally Bank has a reputation for consumer-friendly features, and a $0 annual fee continues the trend.
  • Signup bonus: $100 when you spend $500 on eligible purchases in the first 90 days of your account opening. This is a good bonus for a no-annual-fee cash back card. It’s also relatively easy to get given the low spending requirement.
  • Rewards: Up to 2% cashback. Earn 2% cash back at gas stations and grocery stores. While this may not be as high as other rewards rates, it’s still solid. The advantage here is your gas and grocery rewards aren’t capped. Other cards might give you 3% on gas or groceries but cap your eligible purchases each quarter. Earn 1% cashback on all other purchases — a standard rate among many credit cards.
  • Intro APR: 0% on balance transfers for the first 12 billing cycles following your account opening, and 15.24%, 20.24%, or 25.24% variable after that. This is a solid intro APR period. If you want a longer one, look for cards with 0% intro APR for 15 to 20 months.
  • 10% Ally Deposit Bonus. When you redeem your cash back for a direct deposit into an Ally Bank account — savings, money market account, or interest checking — Ally deposits an extra 10% into your account, which means $20 for $200 cashback. It’s a nice bonus that can help you save.

Ally CashBack Credit Card Drawbacks

  • Your normal purchase and balance transfer APR. If you’re approved for this card, Ally will assign your account a normal purchase and balance transfer APR. This could be as high as 25.24% variable if you have unstable credit.
  • Standard fees. Like most other cards, the Ally CashBack Credit Card charges fees for balance transfers, cash advances, foreign transactions, and late payments.
  • Balance transfer terms. The minimum transaction for balance transfers is $250 and could take two to four weeks to complete. If your account is 60 days past due, Ally may end your balance transfer intro APR.

How Much Cashback Rewards Can I Earn with this Card?

Here’s the cash back you might earn based on this hypothetical budget:

  • $10,000 per year on gas and groceries x 2% = $200 cashback
  • $5,000 per year on other purchases x 1% = $50

In total, you’d earn $250 cashback over the year.

If you redeemed that cash back into your eligible Ally Bank account, you’d receive a 10% bonus. That would give you a total deposit of $275.

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Ally Bank Review & Ratings

Checking

One of the advantages of not having any physical branches is that the bank can pass along those savings to customers in the form of lower fees.

That’s the case with the Ally Interest Checking Account, the only checking product offered by this bank.

There are no monthly fees associated with the account, nor is there a minimum deposit to open an account. Ally also doesn’t charge overdraft fees.

Customers also get free standard checks, a free debit card, and a free bill pay service. Customers who use an Allpoint ATM never face any charges.

Ally Bank Review & Ratings

Because there are no physical branches, customers have to rely on technology when depositing checks, and that’s where the Ally eCheck Deposit feature comes in. You also can set up a direct deposit with this account.

Ally Bank pays 0.10% annual percentage yield (APY) on checking accounts with less than a $15,000 minimum daily balance, and 0.25% APY for accounts with minimum daily balances of $15,000 or more.

Savings

Online banks tend to offer higher rates on savings deposits and Ally Bank is no exception. You won’t get rich off the APY thanks to a low-interest-rate environment, but you’ll still generally get a better rate than you would at a traditional bank.

Ally Bank pays an APY of 0.50% on all balances on its online savings account, which is nearly nine times the national average. Interest compounds daily.

While there are no monthly maintenance fees or minimum balance requirements associated with this account, you’re limited to six transactions per statement cycle.

After that, Ally typically charges $10 for every additional transaction, but, because of Covid-19, the bank temporarily refunds that fee.

Customers can make deposits via smartphone or by mail.

Money Market

In addition to a savings account, Ally Bank also offers a money market account, which pays an APY of 0.50% on all balance tiers.

Customers pay no monthly fees with this account and there are no minimum balance requirements. You can make unlimited deposits and ATM withdrawals for free.

CDs

When it comes to CDs, Ally Bank offers varying terms and types to meet savers’ needs.

Its traditional high-yield CDs range from three months to five years. There’s no minimum deposit requirement to open a CD.

Here’s a look at Ally Bank’s CD rates:

CD Term APY
3 Months 0.15%
6 Months 0.25%
9 Months 0.30%
12 Months 0.55%
18 Months 0.60%
3 Years 0.65%
5 Years 0.80%

Access on the Go

Ally Bank makes it easy to access your banking products, relying on technology to amp up the convenience factor. In addition to 24/7 customer service and online banking, Ally has a mobile app for Windows, iOS, and Android.

What you can do with the app varies on the operating system. Its iOS version is the most robust. It offers the ability to check balances, find ATMs, transfer funds, manage one-time and recurring transfers, deposit checks, pay bills, send money with Zelle, and use Ally Assist.

Ally Bank

Ally’s app gets 4.7 out of 5 stars on the App Store and 3.9 out of 5 stars on Google Play. Ally has even created an Ally Skill for Alexa, Amazon’s voice-activated digital assistant.

This means customers with an Alexa-enabled device can use voice commands to check balances on their checking, savings, money market, and CD accounts. You also can transfer money, hear recent transactions and get the current rates on its products.

Banking Experience

Ally is available online only, so you won’t get in-person service.

But there are plenty of ways to get your questions answered — by phone, email, snail mail, or chat — and Ally’s thorough help center will probably answer many frequently asked questions.

Ally’s app gets mixed ratings – it has a high rating on iOS but fewer than four stars on Android.

Overdraft Fees

Ally doesn’t charge overdraft fees. The bank offers $100 in temporary overdraft coverage for no fee. Generally, customers will qualify for the service 30 days after depositing at least $100 total into their checking account.

Customers can also enroll in a service that allows them to make free overdraft protection transfers from a linked Ally savings or money market account.

Customers who are enrolled in this service and also meet the qualifications for the temporary overdraft coverage will have transfers made in $100 increments from their linked account, as necessary.

If you don’t have enough in your linked accounts to cover a transaction, Ally will activate their $100 of additional coverage.

Transactions are approved or declined at the bank’s discretion, and customers who do overdraft will have 14 days to bring their balance back to positive before their account will be limited.

You won’t be able to escape fees entirely at Ally, but at least the bank clearly highlights what you’ll owe for certain services and transactions. That kind of transparency isn’t always so easy to come by with banks.

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Frequently Asked Questions

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.

Is Ally the best Online Bank?

Ally is one of the best banking institutions. It offers one of the best online checking accounts, and pays a competitive interest rate.

While there’s no one bank that’s best for everyone, Ally is also strong in other categories, including savings and customer service.

How do you Deposit Cash with Ally Bank?

Ally does not accept cash deposits. You can deposit funds in other ways, including mobile check deposit, online transfers, direct deposit, wire transfers or even mail.

What Credit Score Do I Need?

Consider applying for this card with a good to excellent credit score of 670 to 850. If you have better credit, you’re more likely to be rewarded with a higher credit limit and lower APR.

Should You Apply for the Ally CashBack Card?

Overall, the Ally CashBack Credit Card is designed for those who want a hassle-free cash-back rewards card.

Unfortunately, however, it is let down by just that -hassle. While cardholders earn 2% back on gas and groceries, this may be limited – by Ally’s admission – to those who purchase these items at warehouse stores like Costco or Sam’s Club.

Fortunately, this drawback is countered by an easy-to-reach reward for a minimum spend in the first 90 days, as well as a 10% bonus on deposits into eligible Ally accounts.

Online-Only Bank

In conclusion, Ally Bank is online-only; the money it saves on overhead, it can pass to customers in the form of high-interest rates and minimal fees.

For example, the bank doesn’t charge overdraft fees. It also has convenient customer service options and is ideal for people who don’t need branch access for their banking.

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