Ally does not require a minimum balance to open or maintain its checking account

Ally Bank's checking account has no minimum balance requirement. You can open an account with any amount of money and keep it open with a zero balance if you need to. There are also no monthly maintenance fees, regardless of how much or how little you keep in the account.

This is different from many traditional banks, which charge monthly fees if your balance drops below a set threshold—often $500 to $2,500. Ally's structure means you pay nothing for the account itself, whether you use it as your primary checking account or as a secondary account for a specific purpose.

Key Takeaways

  • Ally checking accounts have no minimum balance requirement to open or maintain the account.
  • No monthly maintenance fees are charged, even if your balance is zero.
  • You can use Ally checking as a secondary account without worrying about balance thresholds triggering fees.
  • Interest rates on checking balances vary and are not may provide, so check Ally's current rates before depositing large sums expecting returns.

How Ally makes money without minimum balance fees

Banks that waive minimum balances typically earn revenue through other channels. Ally makes money primarily from the loans it originates—auto loans, personal loans, and mortgages—and from the interest it earns on customer deposits that are held in savings accounts or money market accounts.

Because Ally is an online-only bank with no physical branches, its operating costs are lower than traditional banks. This cost advantage allows Ally to offer checking accounts without the fees that brick-and-mortar banks often charge. The trade-off is that you cannot walk into a branch to deposit cash or speak with a teller in person.

Interest rates on Ally checking balances

Ally's checking account does earn interest, but the rate is typically lower than what you would earn in an Ally savings account or money market account. Interest rates on all Ally products change regularly and are not may provide. As of your research date, you should check Ally's website directly for the current rate on checking balances.

If you are holding a large amount of money and want to maximize interest earned, moving funds to an Ally savings account or money market account will usually give you a higher rate. However, savings accounts have withdrawal limits under federal rules, so a checking account remains the right tool if you need frequent access to your money.

Overdraft protection and fees

While Ally does not charge a monthly maintenance fee or require a minimum balance, it does charge overdraft fees if you spend more money than you have in your account. An overdraft occurs when a transaction posts and your balance goes negative. Ally's overdraft fee structure varies, so check your account agreement or contact Ally directly for the current fee amount.

Ally offers overdraft protection, which links your checking account to a savings account or allows you to set up a line of credit. If a transaction would overdraft your checking account, the bank can pull funds from your linked account instead, often for a smaller fee or no fee at all. Setting up overdraft protection is optional but can save you money if you occasionally overspend.

How to open an Ally checking account

You can open an Ally checking account online in about 10 minutes. You will need a valid government-issued ID, your Social Security number, and an initial deposit method—either a bank transfer from another account or a debit card. Ally does not require a minimum opening deposit, so you can fund the account with $1 if you want to.

After you submit your application, Ally will verify your identity and run a check through ChexSystems, which is a banking history database. Most applications are approved within one business day. Once approved, you can set up direct deposit, link external accounts for transfers, and order a debit card, which arrives in 7 to 10 business days.

Comparing Ally checking to other no-fee accounts

Several other online banks also offer checking accounts with no minimum balance and no monthly fees. Charles Schwab, Discover Bank, and Fidelity all have similar structures. The differences usually come down to interest rates on checking balances, availability of ATM networks, customer service hours, and whether the bank offers other products like savings accounts or investment accounts.

If you are choosing between Ally and another no-fee bank, compare the current interest rate on checking, the ATM network available to you (Ally offers fee-free ATM access at Allpoint and MoneyPass networks), and whether you plan to use other products from that bank. Some people keep accounts at multiple banks for different purposes—a high-yield savings account at one bank and a checking account at another, for example.

Frequently Asked Questions

Can I keep an Ally checking account open if I never use it?

Yes. Ally does not close accounts for inactivity, and there are no fees for maintaining a zero balance. You can leave the account open indefinitely without deposits or withdrawals. However, if you do not use the account for an extended period, Ally may eventually close it under its account closure policy—check your account agreement for the specific timeframe.

Does Ally charge fees for transfers between my accounts?

No. Transfers between your own Ally accounts (checking to savings, for example) are free. Transfers to and from external banks via ACH are also free and typically take one to two business days. Wire transfers have a fee, which you can check on Ally's website.

What happens if my balance goes negative?

Ally will charge an overdraft fee. The amount varies, so check your account agreement. If you have overdraft protection linked to a savings account, Ally will pull funds from that account instead, usually for a smaller fee or no fee. You can also opt out of overdraft coverage entirely, in which case transactions that would overdraft will be declined.

Do I need to maintain a minimum balance to earn interest?

No. Ally pays interest on any balance in your checking account, even if it is $1. However, the interest rate is typically lower than savings accounts, and rates change frequently. Interest is calculated daily and paid monthly.

Can I deposit cash into my Ally checking account?

Not directly. Ally has no physical branches or ATMs that accept cash deposits. You can deposit checks by mobile app (photograph the front and back), transfer money from another bank account, or set up direct deposit from your employer. If you need to deposit cash regularly, you may want to keep a secondary account at a bank with physical locations.