Ally Business Checking

08-03-2021

Ally Business Checking

Ally Small Business Checking
Ally Business Checking

Ally is a hugely popular online bank that offers checking and savings accounts as well as auto loans and mortgages. Regularly appearing on lists of the best online banks, Ally is known for its high-yield savings accounts where you can earn an APR that is 20 times the national average.

If you’re a fan of the bank and are a business owner or freelancer, you’re likely looking to open an Ally business checking account. However, the online bank doesn’t have a business option.

Read on to learn about Ally bank and what business account alternatives are available.

What makes Ally so appealing

Deposit checks remotely. With Ally eCheck Deposit℠ you can deposit checks right from your smartphone. Just snap a photo and you’re good to go. Plus, watch your money grow fast with interest compounded daily.

Ally Bank has been in existence for 100 years but has since evolved and expanded nationwide by converting to an online bank. However, being an online bank does have its limitations. For a full list of bonuses in your area checkout our best Nationwide Bank Promotions. Availability: Nationwide (Online Only).
9/6/10 - What Can Happen If You Use Your Ally Checking Account As A Business Account 8/31/10 - Ally Bank Cuts Rate On Savings And Money Market Accounts 8/23/10 - Ally Bank's CD Renewal Bonus Update 8/23/10 - Ally's 5 Yr CD With Its 60 Day Early Withdrawal Penalty Advantage.
Runners Up: Best Non-ChexSystems Banks 2. Chime Bank is a fast-growing internet-only bank. Unlike big banks, Chime was created during the smartphone era and, therefore, features an app that is more than just a way for customers to review their bank accounts.
By 2018, Ally Financial was ranked among the top 20 in America. Ally Financial made it to the position of the 19th largest banks in the United States as determined by assets in 2018. They had weathered many financial crises that put other financial institutions out of business.

If you want to open Ally business account, it’s easy to understand why.

Ally is an online bank, meaning there are no branches to visit. Instead, you can open a checking or savings account online, deposit checks remotely, and transfer money electronically. You can even transfer money with your voice through Amazon’s Alexa.

For its checking option, there are no monthly maintenance fees, no minimum opening deposit, and incoming wire transfers are completely free — three outstanding features that would be useful for business owners.

Can I use an Ally personal account for my business?

Ally Small Business Checking

Unfortunately, there isn’t an Ally business checking account option; Ally only offers personal accounts.

You may be thinking about opening an Ally account and using it for your business anyway. While it’s technically possible to use a personal checking account for business if you’re a sole proprietor, it’s not a good idea.

If you use a personal checking account for your business, your accounting can become a nightmare and you could run into trouble at tax time. If the IRS decides to audit your business, they’ll be able to review your personal accounts, potentially causing your income to be overstated — and leading to a higher tax bill.

It’s also harder to receive payments from clients. Personal accounts usually can’t connect to credit card or debit card payments like business accounts can, which can cause issues when clients try to pay you.

Finally, keeping a separate business account rather than a personal one may affect your legal liability. If your business runs into trouble or is part of a lawsuit, the only assets that can be compromised are your business assets. But if you run your business from a personal checking account, the line between your personal and professional finances becomes blurred, and you could be personally liable.

Keeping finances separate is just one step to getting ready for a business loan. Nav’s Business Boost plan can help with the rest, from tradeline reporting to personalized financing suggestions.

Check out Business Boost

Get your full business credit reports & scores, PLUS Nav reports your account payments to the business bureaus as a tradeline.

Explore Business Boost

3 Ally business checking account alternatives

Although Ally doesn’t offer a business checking option, there are a couple of other banks out there that offer low fees and convenience. Here are our three favorite business checking account options:

1. Runner-up online bank: Bank Novo

Bank Novo is designed for entrepreneurs on the go, allowing you to manage your account completely from your smartphone. There’s no minimum balance for a business checking account, and your Novo business debit account is accepted worldwide.

You can deposit checks and make payments directly from your phone, and you can send electronic transfers or mail paper checks without having to worry about any fees.

2. High-yield business savings: Citi

For a high-yield business savings account, consider the CitiBusiness Savings account. There is no minimum required deposit, and you can make an unlimited number of deposits each month. Plus, you’ll earn a competitive interest rate on the money you save.

Unfortunately, you can’t open a CitiBusiness Savings account online. Instead, you have to visit a branch in-person. Accounts are only available to business owners in Los Angeles (CA), Orange County (CA), Riverside (CA), San Diego (CA), San Francisco (CA), Miami (FL), Chicago (IL), Baltimore (MD), Las Vegas (NV), New York City (NY), and Washington, DC.

Frequently asked questions about Ally

Here are some of the most commonly asked questions about banking with Ally:

1. Does Ally offer business checking accounts?

Unfortunately, Ally doesn’t currently offer business checking accounts or business savings account. It only has personal accounts, so you’re better off working with another bank for your business needs.

2. Can you use a personal checking account for business?

While you can technically use a personal checking account for business purposes if you’re a sole proprietor, it’s not recommended. It opens you up to legal liability and tax issues that could cost you over the long run.

Instead, open up a dedicated business checking and savings account with a bank — either online or traditional — that caters to small business owners.

3. What is the best free online business checking account?

When it comes to the best online business checking accounts, Azlo stands apart. With no minimum balance required and no monthly maintenance fees, you can easily manage your cash flow and enjoy its benefits.

4. What is the best business savings account?

If you’re looking for the best business savings account, check out CitiBusiness Savings. You’ll earn a competitive interest rate, and there’s no minimum required deposit.

Opening a business checking account

If you’re thinking of opening a new business checking account, you may be disappointed to find out that Ally business checking isn’t an option. Luckily, there are a number of other business banking options that offer the same level of convenience that Ally has, with low minimums and low fees.

Can’t get enough?

We've got tons of FREE business tools and resources right here.

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The Best Non ChexSystems Banks. Guaranteed Approval.

If you were recently denied a bank account, the bank may have told you it was based on a negative ChexSystems report. And since a huge portion of banks and credit unions use ChexSystems, it’s not like you can walk across the street and open a checking account at another bank.

Unfortunately, being on that list lasts for five years and can make opening a simple checking account a nightmare.

Luckily, there are banks that do not use ChexSystems. These Non-ChexSystems Banks offer you a way back into banking and they offer all the services you need and deserve with acceptance rates that are surprisingly high.

We’ve helped thousands of people just like you open non-ChexSystems bank accounts. We’ve selected the best accounts based on acceptance rates, checking account features and benefits, and the accounts with the lowest fees. Best of all, you can open an account TODAY.

Winner: Best Non-ChexSystems Bank

1. BBVA Online Checking

BBVA Online Checking is our favorite non ChexSystems bank account. They have the strongest offering of any of our recommendations. No hidden fees, no monthly minimums, and no monthly service charges. It’s easy to get approved and takes about 3 minutes. Plus, their smartphone app and online tools are the best we’ve reviewed. BBVA does not use ChexSystems but instead utilizes EWS to screen new applicants.

Why do we recommend BBVA Online Checking so highly? If you’ve got poor credit or find yourself on ChexSystems, BBVA will approve you for an account.

NO monthly service charge
NO monthly account balance minimums
NO fees at over 64,000 Allpoint® and BBVA ATMs worldwide
FREE online banking, bill pay, and mobile deposits
FREE unlimited check writing
FREE Visa® debit card
Open with as little as $25

Runners Up: Best Non-ChexSystems Banks

2. Chime Bank

Chime Bank is a fast-growing internet-only bank. Unlike big banks, Chime was created during the smartphone era and, therefore, features an app that is more than just a way for customers to review their bank accounts.

And, best of all, Chime Bank accepts all customers who apply. Even if you have bad or poor credit or have been blacklisted by ChexSystems or credit bureaus. It’s one of the only guaranteed checking accounts we’ve ever reviewed and is available in all 50 states.

FREE Visa® debit card
NO monthly fees or service charges
NO monthly minimums
FREE online banking and mobile banking/deposits
NO fees at over 38,000 MoneyPass® and Visa Plus Alliance ATMs worldwide
SAVINGS: You can round up every purchase to the nearest dollar and automatically deposit that difference into your savings account.

3. Peoples Bank

The Peoples Cash Solutions Second Chance Checking Account might be the answer for you. Peoples Bank will open an FDIC insured no ChexSystems bank account for you even if you have bad credit or have been reported to ChexSystems or TeleCheck in the past (except where fraudulent activity has been reported). Available in all 50 states.

Debit MasterCard®
Personal checkbook
Online bill pay
Online banking
Online money transfers
Monthly maintenance fee of $4.95
$30.00 minimum deposit

4. Radius Bank

The Radius Bank Essential Checking account is a FDIC-insured checking account designed to help you manage your money with powerful technology and limited fees. Available to residents in all 50 states.

Free MasterCard® debit card
Free mobile banking with check deposit
Free online banking with bill pay
$10 minimum deposit to open account
Monthly service charge of $9.00
No minimum balance
Ability to upgrade account after 12 months of responsible banking

5. Wells Fargo Bank

Wells Fargo recently changed the Opportunity Checking account to Clear Access Banking. And we like one change, in particular. Wells Fargo has done away with overdraft and non-sufficient funds (NSF) fees. Clear Access Banking is a debit card-only account (no paper checks available) and if you attempt to purchase something without sufficient funds, the transaction will be denied. That’s a lot better than having the transaction approved and then discovering you’ve been hit with a $35 overdraft fee.

There is a $5 monthly fee, but that is be waived for account holders 24 years old and younger. This account is available to residents in all 50 states.

The largest number of branches in the U.S.
Minimum deposit of $25 to open an account
Online bill pay and smartphone app
Mobile check deposit
Includes a Visa debit card
Send and receive money through Zelle
Additional features include account alerts, 24/7 fraud monitoring, and zero liability protection for your debit card

The Best Second Chance Banks by State

We’ve surveyed banks and credit unions throughout the country to find local, regional, or national financial institutions that offer “Second Chance Bank Accounts” or what some banks call Fresh Start Checking, Opportunity Checking, or New Start Checking.

Most of these institutions use ChexSystems or EWS, but are willing to look at opening these kinds of accounts on a case-by-case basis. Many times, they require a personal visit to a branch and may offer accounts that come with monthly fees or minimum balance requirements. While not as easy and as the BBVA Online Checking account, they do offer you an alternative.