Ally Bank Eliminates All Overdraft Fees

Ally Bank announced today they’ve eliminated overdraft fees entirely from all their accounts. Reports indicate that Ally might still allow some smaller transaction to overdraw an account, but they won’t charge any fee if that happens.

Discover Bank made a similar move two years ago eliminating overdraft and many other fees.

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  • @chucksithe Got an email from Alliant Credit Union that they're following suit in getting rid of overdraft fees.

    Subject: Great News! We're eliminating overdraft fees.

    We're eliminating overdraft fees on all checking and savings accounts – it's just that simple.

    As of August 2, you’ll be automatically refunded within 1-2 business days for Courtesy Pay or non-sufficient funds (NSF) item fees you incur until we can program our systems to completely eliminate them!2

    No sweat, we’ll still have you covered in an emergency if you’ve opted into Courtesy Pay.3

    We won’t miss overdraft fees either, so no need to worry that we’re going to add other fees or ditch our great interest rates.

    Edit: It's also being advertised on the home page of their website.

  • The stop payment fees need to go also. They don't cost the bank anything to process, especially if done online.

  • They talk about this fee like it matters. Eliminate wire transfer fees and bring back unlimited ATM withdrawls.

  • No need to have anything in your lower-interest checking account now. Just keep it all in savings and overdraft protection will automatically transfer everything it needs to checking, at the time of transaction.

    • It's always been that way, automatic overdraft transfers were always free. Real hack is to make multiple savings accounts so you can get more than 6 transactions per month by spreading them apart.

        • The limit still "exists", but they are "temporarily" refunding the fee for going over 6.

          • I think it was permanently removed by the fed a few months ago but some banks didn’t get the memo on purpose

  • Do they have any additional details? For example, will all fund transfers that are insufficient simply be rejected?

    • Brex Cash has free domestic and international wires. Great if you did the $1100 bank bonus in February.

    • Schwab broker has 3 free domestic wires per quarter if you have $100k+ across household accounts. They are easy to set up online.

      • PNC only requires $5k then you can have unlimited free domestic wiring.

        Chase sucks.

      • Marcus by Goldman Sachs give free wires too. IMO Chase Sapphire Banking with 75K in assets has the same banking perks as CPC. I have more than enough assets to qualify for CPC but haven't seen the need to transition. I would probably do so if another good transfer offer came through.

        • What I like about chase is they refund fees charged by the machine. Anyone else but Schwab do that?

          • Every rewards checking account I've ever had (mostly credit unions).

            Also, HSBC Premier has free wires, $75k balance no fee account, or $5k/mo in DD.