Ally Bank is known for its CDs (certificate of deposits) and higher interest rates on savings accounts. The Ally credit card was the first of its kind from the bank. With not much awe, this card offers 2% on groceries and 1% on the remaining purchases. Is the card useful? Let’s see.
Card’s Purpose
Ally bank’s Cashback Credit Card was intended to help earn cash back on everyday expenses like buying essentials or fueling the cars. The ally credit card is easily outshined by its colleagues though. However, it is a great deal for those holding an account with the bank. The cashback for such customers is indeed generous, especially when they are deposited into the ally bank account. Curious about its usage? Read the following details.
Perks of using the card
The ally credit card comes in handy in various scenarios like the following.
• Cashback on everyday purchases
This card is the best companion for people looking for cash back on everyday expenses. Using the card for purchases like groceries, fuel, etc., can fetch a decent cashback of 2 percent.
• Other rewards
There is a 1 percent cash back on every other purchase made using the card, apart from fuel and groceries. So, almost every transaction performed through this credit card fetches some reward.
• Unlimited cashback
As mentioned above, there is a 2 percent cash back on fuel, pantry items, etc. An added advantage here is the no-limit policy. As in, customers can use the credit card as many times as they want to for such expenses.
• No expiry
The rewards, as in the cashback from ally bank for using its credit card never expire. Customers can redeem or use the cashback whenever and wherever required.
• Redeem bonuses
The redeem bonus works only for the customers holding an account from ally bank. There is a 10 percent bonus if the customers redeem their cash back rewards into their ally accounts.
• No annual fee
The customers don’t have to pay any annual maintenance fee or any other annual fee relevant to the card. This exception is probably the best thing about this card.
• Low charges
Almost every charge related to the ally bank credit card is low. Customers can use the card with the least investments and rather good returns.
As mentioned above, the ally credit card suits everyday maintenance. The 2 percent cash back from grocery stores and gas stations is the key benefit from the card. Also, the additional 1 percent cash back on other expenses adds to these rewards making the card a feasible option. There is no expiry to this cashback and benefits. The card provides unlimited cashback on almost every purchase made throughout the month.
Groceries, fuel, and similar commodities are common for everyone. These are mostly targeted by cashback credit card issuers at present. You can find several other credit cards offering better percentages than the ally bank credit card. But the pros like no annual fee and limited charges win it for this card.
Credit cards like Blue Cash Every Day from American Express and others limit card usage and rewards. So, an ally bank credit card can work well if you are looking for a hassle-free option. Moreover, if you add the additional bonus on depositing the cashback into your ally bank account, the percentages become 2.2 and 1.1 for groceries and other expenses. That is a pretty good buy for a fee-free card.
Furthermore, you can improve the percentage by opening any of the ally bank accounts. Ally bank is known for its high interest rates, and combining the cashback could be a gamechanger. You can choose from any of the following ally bank accounts.
Online Savings – this is a high-interest online saving account with zero monthly charges.
Interest Check – it is an interest-bearing checking account from the bank with no monthly charges. It also has ATM fee reimbursements of up to $10.
Money Market – it is an MMA account with a personal checkbook, debit card, etc. This account also provides the facility of zero monthly charges.
The ideal use of the ally credit card is when the customer holds an ally bank account and redeems the cashback through the account. Customers can redeem the rewards by directly depositing the same into the ally bank accounts or through a statement credit.
Visa Signature Logo
The ally bank credit card comes with the Visa Signature logo, meaning that there is a lot more from the card. There is a pretty long list of free and useful benefits from this logo, especially the personal concierge. This feature can help analyze your expenses for travel, shopping, entertainment, etc.
Another significant perk is the waiver for auto rental collision damage. It means the card covers any damage due to theft or collision of cars charged by the rentals. There is also an insurance for travel accidents. Apart from these, customers can also enjoy the following perks from the Visa Signature logo.
• Reimbursement for lost luggage
• Discounts through Visa partners on car rentals, hotels, etc.
• Extended warranties and purchase protection
Another side of the card
Let’s now get to the cons of the ally credit card. There is a foreign transaction fee on the card. So, it is not a reasonable choice if you are traveling overseas. Moreover, there is not much use in having this card if you don’t buy groceries and fuel frequently.
The Bottom Line
This credit card from ally bank is a reasonable deal for someone looking for convenient transactions. It provides reasonable and unlimited cashback on monthly expenses. However, several other cards provide better rates too. Moreover, the Visa Signature logo benefits also come with various cards.
Having said that, if you are an or want to be a customer of ally bank, this card can work for you. The extra cashback and compounded interest rates from the savings accounts can fetch a decent pay from the card. But none of these will work if you are not a frequent purchaser of groceries or visit the gas stations often.
