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 APY that is higher than the national average.
But when it comes to business checking, there are other options you’ll want to consider.
Can you open an Ally account for a business?
If you’re a fan of this 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 other business account alternatives to consider.
Ally is an online bank, meaning there are no branches to visit. Instead, you can open a checking or savings account online, or use the mobile app to 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, no minimum balance requirements, no ATM fees at Allpoint ATMs and incoming wire transfers are completely free — three outstanding features.
Can I use an Ally personal account for my business?
Unfortunately, there isn’t an Ally business checking account option; Ally only offers personal Ally bank 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, separating your business finances and personal finances is important when it comes to legal liability. If you run your business from a personal checking account, the line between your personal and professional finances becomes blurred, and may result in personal liability.
Pros and cons of Ally Bank
As with any bank account or financial institution, there are pros and cons to consider:
Pros
- Good APY on Ally interest checking account
- No overdraft fees
- No minimum account balance requirement
- Free ATM use in U.S. for in network ATMs
- ATM fee reimbursements (with limits)
- Wide range of services
Cons
- No business checking or savings
- No physical branches
- Fees for some transactions
Ally business checking account alternatives
Although Ally doesn’t offer a business checking account option at the moment, there are other business checking accounts worth considering:
1. Bluevine
Great For High Interest Rate
Bluevine Business Banking
Earn 4.0% APY on Bluevine Premier and 2.0% APY on Bluevine Standard when you meet a monthly activity goal. Save time and pay vendors with unlimited transactions via ACH, same day ACH, domestic wires, and international payments. Add up to 5 sub-accounts, each with designated account numbers. $95 (waivable) monthly fee for Premier, $0 for standard. No overdraft fees, no minimum balance requirements. To earn the $300 bonus, customers must apply for a Bluevine Business Checking account anytime between now and 12/31/2024 using the referral code above. After opening the account, customers must add funds within 30 days, then meet at least one of the following eligibility requirements every 30 days for the next 90 days from account funding: Deposit at least $5,000 from eligible merchant services to your Bluevine account Make at least $5,000 of outbound payroll payments from your Bluevine account using eligible payroll providers Spend at least $2,000 with your Bluevine Business Debit Mastercard® and/or Bluevine Business Cashback Mastercard®
Minimum Balance
None
Monthly Cost
$0-$95 (Waivable)
Monthly Free Transactions
Unlimited
Noteworthy Perks
Up to 3.7% APY
2. Lili
One Platform to Manage All Your Business Finances
Lili - Banking designed for your business
Lili empowers business owners by combining business banking, accounting, invoicing, and tax preparation in one platform. For business owners, centralizing all aspects of their business finances streamlines their business operations and provides clarity about their financial position. Lili accepts S-Corps, Partnerships, and LLCs (both single and multi-member). Lili is a financial technology company, not a bank. Banking services provided by Sunrise Banks N.A., Member FDIC.
Minimum Balance
None
Monthly Cost
$0
Monthly Free Transactions
Unlimited
Noteworthy Perks
Fee-Free Overdraft
3. Chase
Great For Digital Banking
Chase Business Complete Banking®
Earn up to $500 when you open a new Chase Business Complete Checking® account. For new Chase business checking customers with qualifying activities. Multiple ways to waive the $15 Monthly Service Fee, including maintaining a minimum daily balance or purchases on your Chase Ink® Business credit card. Full-service business banking. Convenient access to all your business banking services in one place -- lending, checking, credit card and payment solutions. Your choice of payment types. Choose from a full range of options for accepting payments and making deposits that include Zelle®, Online Bill Pay, wire transfers and ACH payments. Convenient access to payment processing. Process all major debit and credit cards with QuickAccept®. It's a built-in feature with your Business Complete Checking account. Get support you can rely on. Get access to our customer support team, plus a wide array of solutions that carter to every stage of your business Full-featured banking online and on-the-go. Manage your business' finances on your terms with the latest online and mobile banking technology. Associate Debit and Employee Deposit Cards available upon request
Minimum Balance
None
Monthly Cost
$15 with ways to waive
Monthly Free Transactions
Unlimited
Noteworthy Perks
$500 Sign Up Bonus
4. Bank of America
Great For High Cash Deposit Limit
Bank of America® Business Advantage Banking
Bank of America® Business Advantage Banking is a checking account with 2 options. Pick the 1 that works best for you. $200 bonus offer. Click Get Started for more details Easy, anytime access. Visit Bank of America at thousands of financial centers and ATMs. 24/7 security. Total Security Protection® and fraud monitoring. Secure sign-in, card locking features and more. Convenient ways to pay. Use your debit card immediately for in-store and digital purchases. Digital account management tools when enrolled in Business Advantage 360. Access to Small Business specialists to help find solutions that fit your goals. Our $0 Liability Guarantee means that you’re not liable for unauthorized transactions made using your business debit card, as long as you report them promptly. Eligible Preferred Rewards for Business members can access a wide range of rewards, benefits and savings. Bank of America, N.A. Member FDIC
Minimum Balance
$100
Monthly Cost
$16-$29.95 or $0 if requirement is met
Monthly Free Transactions
20-500
Noteworthy Perks
High Cash Deposit Limit
5. Capital One
Great For Unlimited Digital Transactions
Capital One Business Checking Accounts
No fees on unlimited digital transactions. Free overdraft coverage and debit cards included. All options include online and mobile banking, as well as mobile deposits from your smartphone. Send electronic payments to vendors for free.
Minimum Balance
None
Monthly Cost
Starts at $15 monthly service fee, waived with $2,000 minimum balance
Monthly Free Transactions
Unlimited Digital Transactions
Noteworthy Perks
Deposit checks from your phone
Frequently asked questions about Ally
Here are some of the most commonly asked questions about Ally bank offers:
Does Ally offer business checking accounts?
Unfortunately, Ally doesn’t currently offer business checking accounts or business savings accounts. It only offers personal accounts, so you’ll need to find another bank for your business needs.
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.
What is the best free online business checking account?
When it comes to the best online business checking accounts with no monthly maintenance fees and no minimum balance requirements, you’ll have several options to choose from including:
What is the best business savings account?
If you’re looking for the best business savings account, check out CitiBusiness Savings. With Citi, you’ll earn a competitive interest rate, and there’s no minimum required deposit.
Can I open an Ally account for an LLC?
Unfortunately, since Ally doesn’t offer business checking or saving accounts you can’t open an account for your LLC.
Do I need a business bank account for an LLC?
Yes, if you have an LLC you should use a business bank account. Failing to do so may jeopardize the asset protection benefits of a business entity.
Is Ally Bank a legitimate bank?
Yes, Ally Bank is a legitimate bank. They are a Member FDIC and Equal Housing Lender. FDIC insurance provides protection against bank failure or theft for up to $250,000 per depositor. Being an Equal Housing Lender holds the bank to Federal Fair Lending Laws. If you are looking for a financial institution for your personal banking needs, Ally Bank is certainly an option.
Last word: 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 offers, including fee-free and low fee options.
Compare the best business checking accounts
Opening a business checking account can increase your chances of getting financing and simplify your cash flow management. Use our research to quickly and easily find the right account for your business.
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Gerri Detweiler
Education Consultant, Nav
Gerri Detweiler, a financing and credit expert, has been featured in 4,500+ news stories and answered 10,000+ credit and lending questions online. In addition to Nav, her articles have appeared on Forbes, MarketWatch, and Startup Nation. She is the author or co-author of six books, including Finance Your Own Business, and she has also testified before Congress on consumer credit legislation.