So you want to know how to close an ally account. Right! Breaking with your bank can be hard to do because you so much longer with your bank regarding losing credit and debit cards, applying for loans, a mortgage, and never thinking about how to close your bank account. The customers in the United States of America have so many options to switch over to other banks, if not satisfied with the working of the existing one.
Most people think about closing their accounts due to their multiple accounts and paying fees. If the case is, that you have to complete the store, you can do it with ally bank and with any other banks by following some rules. So if you want to know how to close an ally account, keep reading the article.
How to Close Ally Account
ID your New Bank
- Before you disclose the closing of your bank account with Ally bank, you should search for the new one.
- While planning the closing of an account, you should consider the details like types of account features, overdraft protection, payments, debit or credit cards, bills, details about balance, and transfer of funds.
- You have to keep in mind the interest rates, annual percentage yields and earn more interest in any manner.
Keep in mind the old bank rules while closing your bank account:
- Before planning to close the bank account, you should ask your existing bank about the closing fees, money market accounts, and the minimum balance requirements.
- If you wish to withdraw money from the deposit account, you must pay the release costs before maturity.
Cancel all the Bank Transactions:
- To end the account, stop any automatic payments with your former bank.
- There’s a possibility your current account is linked to an automated bill payment or other transfers, so you should move all of these operations to a separate account before shutting it.
Legalize the procedure:
- Eliminating a bank account is dependent on your bank’s particular preferences, as you may do it online, over the telephone, or in person at the nearest branch.
To apply and get documentation, follow these steps:
- Obtain documented verification of account closure and other essential data from the bank once the account has been closed.
- Call the bank to double-check when you receive the confirmation email.
Procedures to close Ally bank account:
There are mainly two methods to close Ally bank accounts, which I searched from the official website of the Ally bank. You can use any one of them to opt, according to your convenience, to close down the account. These are both offline methods, as there are no online methods available to do this task.
By calling Customer Care:
- You should contact Ally Bank’s customer care department at 1-877247-2559.
- You must speak with one of the institution’s call center staff and advise them that you wish to cancel your Ally bank account.
- The executive will acquire a few questions regarding the verification of account that the account belongs to you in reality.
- It would help if you gave the answers correctly.
- Then he will ask about the reason for closing the account, so he should tell the valid reason for it.
- The executive officer will forward your request for closing the account.
By sending a written request:
- You should send a written request letter to Ally bank to close the account.
- The letter writes an “Account Closure” in the subject head of the request.
- Sign the request letter with your name, account number, and the reason for canceling your account, then e-mail all of the data to Ally bank customer support at PO Box 951, Horsham, PA 19044.
Ally bank fee structure:
One of the primary reasons for liking Ally bank for most people is its fee structure. For instance, Ally Bank does not restrict monthly maintenance fees for interest checking accounts and saving accounts.
Ally Invest platform:
In addition to Ally’s traditional banking products services, it has set a goal with Ally’s investment platform. This platform gives the investors two methods for investment, self-directed trading and active manageable portfolios.
How APY of Ally bank Works and What it Means for your Savings
You might have noticed that banks quote their “APYs,” but do you know what it means?
APY is an abbreviation of Annual Percentage Yield; the banks have to display this interest rate for their deposit accounts like the certificate of deposits and the saving accounts. APY gives you the complete picture of the saving you earned in one year.
Moreover, it tells you the total amount of interest on the deposit account you earn annually by supposing that you do not add or withdraw from your account in the whole year.
- APY includes the frequency of compound interest and the interest you earn on the principal amount.
- Ally’s APY is higher than 1% Discover.
- CITs had a higher APY up to 2.45%, just FYI, one year back.
Let’s understand the interest rate you can earn by Ally account by the following example.
Anna Baluch and her husband decided to combine their savings in a high-yield saving account after their marriage in the online bank Ally, which paid them 2.2% interest at that time.
They both had saving accounts in other banks also, but they get 0.02% interest+ 0.01% interest. This means that switching over to Ally bank could cash them up to 200 times much interest each month. In addition to its attractive interest rate, you should note that as of October 3, 2019, this account pays 1.9 % interest.
Ally bank offers also offers awe-inspiring benefits like these offers. Now they can enjoy 440$ on estimated interest earnings with Ally online banking.
Moreover, according to this couple, when they returned to capital one, the current interest rate was the same as with Ally. And now they can earn 0.599% APY with capital one. Ally’s 11 months no penality fee was higher than the three months best and six-month CD rate available at internet banks and credit unions.
Frequently Asked Questions
Is there a fee to end an account with Ally?
If you do not want to be penalized for quitting a basic savings account, you must pay for additional accounts, such as cash accounts. You must pay an early withdrawal fee if you remove all of the money from a deposit account before the maturity date.
Is it possible for me to terminate my Ally bank account online?
Yes, you choose to shut your ally bank account online, in person at a local branch, or over the phone, according to your particular preferences and your bank’s policies.
Is it true that canceling an Ally bank account would harm your credit?
The information in your credit file serves as the foundation for calculating your credit score. While establishing or closing an Ally bank account has no impact on your credit score, canceling a credit card account does.
Are there penalties for closing a savings account?
If you plan to close the saving account, the bank may charge closing fees with the time passing between the funds, withdrawal, and the actual closing.
Is Ally a good bank?
Yes, ally is a good bank. It offers competitive interest rates, landing from above the best online banks, being recognized among the best online saving accounts, best CD rates, and best money market accounts.
What is the procedure for canceling my Ally automatic payment?
Log in and choose the balance on auto-pay—then activity from the list to stop the automatic payments. Choose Modify payment information, stop payment, or terminate a deal from the drop-down menu.
Is there a minimum balance required in Ally’s savings account?
An ally savings account does not demand a minimum balance or a monthly charge.
Can I close a bank ally account over the phone?
Yes, you can close a personal or business bank account over the phone, as it is the best way to ensure that you closed your account correctly.
What happens when you close an Ally bank account?
When you close your ally bank account, it does not hit your credit score.
What is the cost of closing an Ally bank account?
The IRA account must be closed for a fee of $25, which is levied after all monies have been removed. This cost may also be thought of as a cancellation fee. When you move money from one account to another, a partial account outbound transfer fee of $ 50 is charged.
So this was all about how to close Ally’s account. But keep in mind that you should be very careful in providing information about yourself, like your ID card number, correct name, and account number, while writing in the written request letter. The process will take some time to give you a response from the bank. I hope that information provided in the article will be helpful to you.
I am Lavinia by name and a financial expert with having a degree in finance from the University of Chicago. In my blog, I help people to educate by making wise choices regarding personal investment, basic banking, credit and debit card, business education, real estate, insurance, expenditures, etc.