Is Ally Bank safe? 2025 full guide

Ally Bank is a fully online bank that offers checking accounts, savings accounts, and other banking services. Since banking without a local branch might seem risky, you're probably wondering how safe Ally Bank is.

Many of Ally's safety standards are the same as traditional banks. They protect your money with FDIC insurance and use advanced security technology to guard your personal information.¹²

This guide walks through all you need to know.

Is Ally Bank safe to use?

It's natural to feel uncertain about a bank that operates entirely online. Without a physical building to visit, you might wonder if your money is at risk for hacks or scams.

But Ally Bank has a layered security strategy with key features including:

• multi-factor authentication
• antivirus and anti-malware protection
• regular security updates and monitoring

They also limit access to your personal information to only employees who need it for their jobs.¹

We’ll dive into these features in detail below. If you’re new to Ally Bank and want to learn more about their services, check out our full Ally Bank review.

Is Ally Bank FDIC insured?

Yes, Ally Bank has FDIC insurance.² This means that your money is protected by the federal government.

The Federal Deposit Insurance Corporation (FDIC) covers up to 250,000 USD per person for each type of account you own.

If something happens to Ally Bank - like if it were to fail or close down - the FDIC ensures you'll get your money back up to 250,000 USD per account type.

This insurance kicks in automatically when you open an account with Ally Bank. You don't need to apply or pay for it. It covers pretty much all types of bank accounts, including checking, savings, CDs, and more.

If your balance is higher than the FDIC insurance coverage limit, you can increase your coverage by opening different types of accounts. Each of your account types will be protected.

What are Ally Bank's safety features?

Ally Bank uses multiple layers of security to protect your money and personal information. Here's a snapshot of what they are.¹

• Antivirus and anit-malware protection: Security tools that scan for and block harmful software that could compromise your account security

• Firewalls: Check all incoming and outgoing traffic to prevent unauthorized access to the bank's systems

• Transport Layer Security (TLS) encryption: Scrambles your data when you're using Ally Bank’s website or app and blocks certain VPNs or public Wi-Fi considered unsafe

• Multi-factor authentication: When you log in from a new device or make certain transactions, Ally Bank will ask for extra verification - usually through a code sent to your phone

• Account monitoring: Ally Bank's security team watches for unusual activity that might indicate fraud on your account

• Site and app review: Ally Bank regularly searches for fake websites and apps that try to impersonate their services to protect customers from scams

• Automatic logout: If you haven't been active for a certain time, Ally Bank will automatically log you out so that others can't access your account

• Credential confidentiality: Keeps your login information private and only available to employees who genuinely need the information to do their jobs

💡 Ally Bank also offers free antivirus and anti-malware software. You can download Webroot® SecureAnywhere™ for free on up to three devices for an added layer of protection.¹

Pros and cons of Ally Bank

Ally Bank is a great online bank with strong safety features, but there are some things to be aware of. Here's what you should consider before opening your account:

Not having the ability to send money internationally is perhaps the biggest con of banking with Ally Bank. They stopped offering this service in 2013, which means you can't send money to family, friends, or businesses in other countries.³

You can still receive money from abroad, but you'll need an alternative for secure international transfers.

What’s the best way to send money internationally?

Banks are certainly one option for sending money internationally, as are services like PayPal. But the problem with banks is they can often be slow, expensive and inconvenient. Luckily, there’s a better alternative out there.

You can send money worldwide with Wise for low fees and the mid-market exchange rate. It’s easy and quick to set up a payment online, and you’re guaranteed secure transfers even when sending large sums.

Wise is a money service business (MSB) regulated by 12 international financial authorities, and uses sophisticated security features to keep you and your money safe.

Open a Wise account, and you can send, spend and convert between 40+ currencies whenever you need to. You can even receive money from all over the world using your own local account details.

As if all that wasn’t enough, there’s a Wise Multi-Currency Card too. For a one-time fee of just $9, you can spend in over 150 countries in the local currency. Your USD is automatically converted at the mid-market rate, for just a small conversion fee.

Open a Wise account today

💡 Need to make a business payment? With the Wise Business account, you can send up to 1,000,000 USD per transfer from licensed states.

Discover the difference between
Wise Business vs Personal

Tips and tricks for avoiding scams with Ally Bank

Ally Bank has strong security measures, but it's still important to do your part to protect yourself from banking scams. Here are a few tips.

Overall, it's always better to be safe than sorry. If something feels off, get in touch with Ally Bank directly to verify the details before sending money or taking any action.

Bottom line: is Ally Bank safe?

Ally Bank is as secure as a traditional brick-and-mortar bank. They're FDIC-insured and use strong digital security measures to keep your money protected. However, it’s important to take normal precautions to avoid scams.

If you’re looking for an international transfer provider, use Wise to safely send high speed transfers to over 140 countries.

Sources

1. Ally Bank - How our security approach protects you
2. Ally Bank - Maximize your FDIC Insurance
3. Ally Bank - Ally international wire transfer