Online banking powerhouse Ally Bank is just beginning to notify customers of some changes that will affect checking, money market and savings accounts. The changes that will most likely not be big enough for some to switch over to another bank you should be aware of these that will be effective on August 15, 2015.
One of the changes involves ATM Fees which Ally Bank prided itself on in most of its marketing. The online bank will be eliminating unlimited ATM fee rebates. Ally Bank will reimburse up to $10 per statement cycle in ATM fees other banks charge when customers use their Ally Bank debit card at any ATM machine nationwide. Basically if you go over 2 or 3 ATM withdrawals a month you will have to pay the other banks fees. The good thing about it is that Ally Bank will continue to not charge its customers ATM fees.
For those of us that use ATM machines more than once or twice a month Ally Bank has joined the Allpoint network to allow customers no fee access to more than 43,000 ATMS in the U.S. They plan to include Allpoint ATM locations on its ATM and Cash Locator app by the end of August.
Ally Bank is increasing the NSF or Overdraft fee from $9 to $25. They will continue to limit the NSF fee to a maximum of one per day. They currently offer free overdraft transfer service and balance alerts to help customers avoid fees.
You have to wonder if you are a heavy ATM user or occasionally overdraft your accounts if Ally Bank is very competitive as compared to other internet banks. The largest online bank Capital One 360 formerly known as ING Direct doesn’t provide any ATM fee rebates. Capital One 360 is a little better than Ally Bank’s since it doesn’t charge a fee for overdrafts. But you will pay interest on the amount you borrow.
Also to avoid fees remember that all savings and money market accounts limit the number of withdrawals to six per statement period. Ally Bank charges $10 for each withdrawal when the customers goes over that limit. You can do unlimited ATM withdrawals without worrying about this ACH/transfer limit.
My favorite online bank stands at Etrade Bank who DOES reimburse you for ALL ATM Fees and it is UNLIMITED. You may also compare this to Discover Bank who seems to get more and more competitive everyday with a HIGHER INTEREST than Ally Bank. I do have a feeling that Money Magazine will not vote Ally Bank the Best Online Bank after making these changes because it does lower the bar for them.