Thinking about making the switch to Ally Bank? Fantastic choice! As an online-only bank, Ally offers competitive interest rates, low (often zero) fees, and a robust suite of digital tools designed to make managing your money simpler and more efficient. While the idea of switching banks might seem daunting, especially if you've been with your current institution for years, I'm here to tell you it's a straightforward process when broken down into manageable steps.
So, are you ready to embark on a journey to smarter, more convenient banking? Let's dive in!
Step 1: Discover Ally Bank and Choose Your Accounts
Before you jump headfirst into opening accounts, let's take a moment to explore what Ally Bank offers and determine which accounts best fit your financial needs. This initial research will ensure a smooth transition and maximize the benefits you receive.
A. Understand Ally Bank's Offerings
Ally Bank is known for its high-yield savings accounts, competitive checking (Spending) accounts, and a variety of CD options. They also offer money market accounts, investment services (Ally Invest), and even home and auto loans.
Consider your primary banking needs: Are you looking for a better savings rate? A checking account with no monthly fees? Or perhaps a combination of both?
Research their features: Ally offers tools like "Savings Buckets" to help you categorize your savings goals and "Boosters" like recurring transfers and "Surprise Savings" to automate your saving. For their Spending Account, they have "Spending Buckets" to help track expenses.
B. Select Your Account Types
Once you have a good grasp of Ally's offerings, decide which accounts you want to open. Common choices include:
Ally Bank Spending Account (Checking): An everyday checking account with no monthly maintenance fees and features like spending buckets.
Ally Bank Online Savings Account: A high-yield savings account designed to help your money grow faster with competitive interest rates and tools like savings buckets and boosters.
Money Market Account: Offers features of both checking and savings, with typically higher interest rates than a traditional savings account and more flexible access to funds.
CDs (Certificates of Deposit): For money you don't need immediate access to, CDs can offer guaranteed returns for a set period.
Remember, it's always $0 to open an Ally Bank account, and there are no monthly service fees for their core deposit accounts.
Step 2: Open Your New Ally Bank Accounts
This is where the excitement begins! Opening an account with Ally Bank is designed to be a quick and seamless online experience, often taking as little as five minutes.
A. Gather Necessary Information
Before you start the application, have the following information readily available for each account owner:
Full Legal Name
Social Security Number (SSN) or Taxpayer Identification Number (TIN)
Date of Birth (you must be at least 18 years old)
U.S. Residential Street Address (and previous address if you've lived at your current one for less than five years)
Occupation
Contact Information (email and phone number)
Mother's Maiden Name (for security purposes)
Information for your initial deposit (e.g., routing and account number from your old bank if you plan to transfer funds electronically)
B. Initiate the Online Application
Visit Ally.com: Go to the official Ally Bank website.
Navigate to "Open an Account": Look for a prominent button or link, often under "Checking & Savings" or "Open Account."
Choose Account Type(s): Select the type of account you wish to open (e.g., Spending, Savings).
Complete the Application Form:
You'll be prompted to provide your personal details as gathered in the previous step.
If you're opening a joint account, you'll enter information for all account owners.
You may be asked about your initial deposit amount, but remember, there's no minimum deposit required to open an account. This is usually for planning purposes.
Review and Submit: Carefully review all the information you've entered to ensure accuracy. Read and accept the legal disclosures. Then, submit your application.
C. Fund Your Account (Initial Deposit)
While not required to open the account, funding it is the next logical step to start utilizing Ally's features. You have several convenient options:
Electronic Transfer (ACH): This is a common method where you link your existing bank account to your new Ally account and transfer funds. This usually takes 1-3 business days.
Mobile Deposit (eCheck Deposit℠): Use the Ally mobile app to deposit a check by taking a picture of it.
Wire Transfer: For faster, larger transfers, you can initiate a wire transfer from your old bank (fees may apply from your old bank).
Mail a Check: You can mail a check to Ally Bank with a deposit slip.
The sooner you fund your account, the sooner you can start enjoying Ally's benefits!
Step 3: Set Up Direct Deposits
Once your Ally Bank account is open and funded, a crucial step is to redirect your incoming funds. This typically involves setting up direct deposit for your paycheck and any other regular income.
A. Obtain Ally Bank Direct Deposit Information
You'll need two key pieces of information for your Ally Bank account:
Ally Bank Routing Number: This is generally 124003116 for Ally Bank.
Your Ally Bank Account Number: This is specific to your individual checking or savings account. You can find this by logging into your Ally online banking or mobile app.
B. Update Your Direct Deposit with Employers/Payers
Contact Your Employer's Payroll Department: This is usually the primary contact for setting up or changing direct deposit information. They may require:
A completed direct deposit form (Ally provides a generic one on their website you can fill out).
A voided check from your Ally Spending Account (if applicable).
Your Ally Bank routing and account numbers.
Update Government Benefits/Other Income: If you receive social security, veteran's benefits, retirement payments, or any other regular income, you'll need to update your banking information with the respective agencies. This can often be done online or by calling their customer service.
Examples: Social Security Administration, pension providers, investment income.
It's a good idea to keep your old bank account open and funded until at least one or two direct deposits have successfully cleared into your new Ally account. This provides a buffer and ensures no interruption in your income.
Step 4: Update Automatic Payments and Subscriptions
This is arguably the most time-consuming but critical step. You need to ensure all your recurring bills and subscriptions are linked to your new Ally Bank account to avoid missed payments and potential late fees.
A. Compile a List of Recurring Payments
Go through your last 6-12 months of bank statements from your old account. Look for:
Utility Bills: Electricity, water, gas, internet, phone.
Loan Payments: Mortgage, car loans, student loans, personal loans.
Credit Card Payments: Automatic transfers to pay your credit card bills.
Subscription Services: Streaming services (Netflix, Spotify), gym memberships, software subscriptions, online news.
Insurance Premiums: Auto, home, health, life.
Other Automatic Debits: Any other regular payments that come directly from your account.
B. Update Each Payee Individually
For each item on your list:
Access the Payee's Website or Contact Their Customer Service: Log into the website of each service provider or call their customer support.
Locate "Payment Information" or "Billing Details": Find where you can update your bank account information.
Enter New Ally Bank Details: Provide your Ally Bank routing and account numbers.
Verify New Payment Source: Double-check that the updated information is saved correctly.
C. Set Up Ally Bill Pay
Ally Bank offers a convenient online bill pay service directly from your Spending Account. This can streamline your bill management.
Log into Ally Online Banking: Go to the "Payments" section.
Select "Bill Pay":
Add Payees: Enter the payee's name, account number, and address. For many large companies, Ally can automatically pull in eBills.
Schedule Payments: You can set up one-time payments or recurring payments. Choose a "Scheduled Delivery Date" that allows ample time for the payment to reach the payee before the due date.
Don't rush this step! Missing even one payment can lead to late fees and negative impacts on your credit score. Give yourself plenty of time to update everything.
Step 5: Transfer Remaining Funds and Close Your Old Account
Once you're confident that all your direct deposits and automatic payments are successfully routed to Ally Bank, it's time to consolidate your funds and formally close your old bank account.
A. Transfer Remaining Funds
Initiate a Final Transfer: Transfer any remaining balance from your old account to your new Ally Bank account. You can typically do this via an ACH transfer initiated from your Ally account, or by contacting your old bank.
Consider Leaving a Small Buffer: It's a wise precaution to leave a small amount of money (e.g., $50-$100) in your old account for a week or two after you think everything is switched. This acts as a buffer in case any forgotten small debits or checks unexpectedly clear.
B. Formally Close Your Old Account
Check for Fees: Before closing, verify if your old bank charges any "early closeout fees." Some banks might charge a fee if you close an account within a short period (e.g., 90-180 days) of opening it.
Contact Your Bank: You can typically close an account by:
Calling their customer service: This is often the easiest method for traditional banks, especially if you don't have a local branch.
Visiting a local branch: If your old bank has a physical location, you can close it in person.
Online: Some banks allow account closure online, though it's less common for primary checking accounts.
Confirm Zero Balance: Ensure the account balance is zero before requesting closure. If there's a small positive balance, they may mail you a check or transfer it.
Obtain Written Confirmation: Always request written or email confirmation that your account has been successfully closed. This is your proof and a vital record. Keep this confirmation with your financial documents.
Step 6: Monitor and Adjust
The transition isn't truly complete until you've successfully navigated a full billing cycle or two with your new Ally Bank accounts.
A. Regularly Monitor Your Ally Accounts
Check transactions frequently: For the first month or two, log into your Ally account daily or every few days to ensure all expected deposits and payments are going through as planned.
Review statements: Carefully review your first few Ally statements to catch any discrepancies.
B. Adjust as Needed
If you find a forgotten recurring payment or direct deposit still linked to your old account, promptly update it to your Ally account.
Familiarize yourself with Ally's online banking and mobile app features, like alerts for low balances or large transactions, to stay on top of your finances.
By following these steps, you'll be able to successfully switch your banking to Ally Bank, taking full advantage of their competitive rates and convenient digital services!
10 Related FAQ Questions
Here are 10 common "How to" questions related to switching to Ally Bank, with quick answers:
How to find my Ally Bank routing number?
Your Ally Bank routing number is generally 124003116. You can also find it by logging into your Ally online banking or mobile app, usually under your account details.
How to set up direct deposit with Ally Bank?
You'll need your Ally Bank routing number (124003116) and your specific Ally account number. Provide these to your employer's payroll department or the payer of your income. Ally also provides a direct deposit form on their website you can fill out.
How to transfer money to my new Ally Bank account?
You can transfer funds electronically via ACH from your old bank (linking accounts), use Ally's eCheck Deposit℠ to deposit checks via mobile app, initiate a wire transfer, or mail a check.
How to pay bills from my Ally Bank Spending Account?
Log into your Ally online banking, go to the "Payments" section, and select "Bill Pay." You can add payees and schedule one-time or recurring payments directly from your Spending Account.
How to get cash from my Ally Bank account?
Ally Bank is an online-only bank, but you can get cash by using your Ally Debit Card at any Allpoint® or MoneyPass® ATM nationwide. Ally also offers up to $10 in ATM fee reimbursements per statement cycle for fees charged by other ATMs across the United States.
How to close my old bank account after switching to Ally?
Once all direct deposits and automatic payments are confirmed to be going to Ally, transfer any remaining funds out of your old account. Then, contact your old bank via phone or in person to formally request the account closure. Always ask for written confirmation.
How to access Ally Bank customer service?
You can contact Ally Bank customer service 24/7 by calling 1-877-247-2559 for banking inquiries. They also offer online chat.
How to check my Ally Bank account balance?
You can check your account balance anytime by logging into your Ally online banking portal or using the Ally Bank mobile app.
How to use "Savings Buckets" in my Ally Savings Account?
After logging in, navigate to your Savings Account. You'll find an option to "Organize using buckets." Here you can create and name different virtual "buckets" within your single savings account to categorize your savings goals (e.g., "New Car Fund," "Vacation," "Emergency Fund").
How to link an external account to Ally Bank for transfers?
Log into your Ally online banking, go to "Transfers" and then "Bank Transfers." Select "+ Link other accounts" and provide the routing number, account number, and account type of the external account you wish to link. Ally will verify ownership before you can use it for transfers.