Ally Bank is a U.S.-based digital bank known for its no-fee structure, high-interest savings accounts, and unique tools like Ally Bank buckets for budgeting. With a sleek Ally Bank app and consistently strong customer reviews, it’s a favorite among Americans looking for flexible, digital-first banking. However, Ally Bank is not available in Canada, which leaves many Canadian residents searching for similar options that offer better rates, lower fees, and powerful online tools. Fortunately, several Ally Bank alternatives in Canada provide the same benefits—and often more. Read on to discover the top digital banking solutions available to Canadians today.
What is Ally Bank?
Ally Bank is a U.S.-based online-only bank that has redefined digital banking since its inception in 2009. Emerging from GMAC Bank, it was established with a mission to offer straightforward, customer-centric financial services. Ally provides a comprehensive suite of products, including high-yield savings accounts, interest-bearing checking accounts, money market accounts, certificates of deposit (CDs), mortgages, auto loans, and investment services through Ally Invest.
A standout feature is its innovative “buckets” tool within savings accounts, allowing customers to allocate funds toward specific goals, enhancing budgeting and saving strategies. The Ally Bank app offers a seamless user experience, enabling customers to manage accounts, deposit checks, and transfer funds with ease. Notably, Ally charges no monthly maintenance fees and requires no minimum balance, making it accessible to a broad range of customers. Its commitment to transparency, competitive rates, and 24/7 customer service has earned it high customer satisfaction ratings and recognition as one of the leading online banks in the U.S.
Is Ally Bank Available in Canada?
Ally Bank is a U.S.-based online-only bank renowned for its high-interest savings accounts, user-friendly digital tools like “buckets” for budgeting, and 24/7 customer support. Despite its popularity in the United States, Ally Bank is not available in Canada. In 2012, Ally Financial sold its Canadian operations to the Royal Bank of Canada (RBC), leading to the discontinuation of Ally’s Canadian high-interest savings accounts by April 2013.
For Canadians seeking similar digital banking experiences, several alternatives offer competitive interest rates, no monthly fees, and robust online platforms. Notable options include EQ Bank, Tangerine, Simplii Financial, KOHO, and Alterna Bank. These institutions provide services that mirror Ally’s offerings, such as high-yield savings accounts, intuitive budgeting tools, and comprehensive mobile banking apps, catering to the needs of Canadian consumers looking for efficient and modern banking solutions.
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5 Ally Bank Alternatives in Canada
Ally Bank, a prominent U.S.-based online financial institution, is well-regarded for its high-interest savings accounts, user-friendly digital tools like “buckets” for budgeting, and 24/7 customer support. However, Ally Bank is not available in Canada. In 2012, Ally Financial sold its Canadian operations to the Royal Bank of Canada (RBC), leading to the discontinuation of Ally’s Canadian high-interest savings accounts by April 2013.
For Canadians seeking similar digital banking experiences, several alternatives offer competitive interest rates, no monthly fees, and robust online platforms. Notable options include EQ Bank, Tangerine, Simplii Financial, KOHO, and CurrencyFair. These institutions provide services that mirror Ally’s offerings, such as high-yield savings accounts, intuitive budgeting tools, and comprehensive mobile banking apps, catering to the needs of Canadian consumers looking for efficient and modern banking solutions.
Tangerine
Overview: Tangerine is a Canadian direct bank and a subsidiary of Scotiabank, offering a range of financial products, including no-fee chequing and savings accounts, GICs, and mortgages.
Key Features:
- No monthly fees on chequing and savings accounts.
- Free Interac e-Transfers®.
- Access to over 3,500 Scotiabank ABMs across Canada.
- Mobile banking app with budgeting tools.
Fees:
- No monthly account fees.
- Foreign currency conversion fee: 2.5%.
Why Choose Tangerine? If you’re looking for a well-established Canadian bank with a comprehensive suite of financial products and a user-friendly digital platform, Tangerine is a solid choice.
CurrencyFair
Overview: CurrencyFair is an international money transfer service that allows users to send money to over 150 countries with competitive exchange rates and low fees.
Key Features:
- Average exchange rate margin of 0.53%.
- Flat transfer fee of approximately CAD $4.
- Option to fix exchange rates for up to 48 hours.
- User-friendly online platform and mobile app.
Fees:
- Flat transfer fee: CAD $4.
- Average exchange rate margin: 0.53%.
Why Choose CurrencyFair? For Canadians who frequently send money internationally, CurrencyFair offers a cost-effective and transparent solution with competitive exchange rates and low fees.
EQ Bank
Overview: EQ Bank is a Canadian digital bank offering high-interest savings accounts, no-fee daily banking, and international money transfers through Wise.
Key Features:
- High-interest savings account with competitive rates.
- No monthly fees or minimum balance requirements.
- Free Interac e-Transfers® and bill payments.
- International money transfers via Wise with low fees.
Fees:
- No monthly account fees.
- Currency conversion: Canadian dollars only.
Why Choose EQ Bank? If you’re seeking a high-interest savings account with no fees and the ability to send money internationally at competitive rates, EQ Bank is an excellent alternative.
Simplii Financial
Overview: Simplii Financial is a Canadian direct bank and the digital banking division of the Canadian Imperial Bank of Commerce (CIBC), offering a range of financial products with no monthly fees.
Key Features:
- No-fee chequing and savings accounts.
- Free Interac e-Transfers®.
- Access to over 3,400 CIBC ATMs across Canada.
- Global money transfers with no transfer fees.
Fees:
- No monthly account fees.
- Foreign currency conversion fee: 2.5%.
Why Choose Simplii Financial? For Canadians looking for a comprehensive digital banking experience with no fees and the backing of a major bank, Simplii Financial is a strong contender.
KOHO
Overview: KOHO is a Canadian fintech company offering a prepaid Mastercard with budgeting tools, cashback rewards, and savings features.
Key Features:
- Prepaid Mastercard with up to 2% cashback on eligible purchases.
- No monthly fees on the Essential plan; premium plans available with additional perks.
- Real-time spending insights and budgeting tools.
- Option to build credit history with the Credit Building feature.
Fees:
- Essential plan: $0/month.
- Extra plan: $12/month.
- Everything plan: $14.75/month.
Why Choose KOHO? If you’re interested in a modern banking experience with cashback rewards, budgeting tools, and the ability to build credit, KOHO offers a flexible and user-friendly platform.
Comparing the Best Ally Bank Alternatives for Canadians
f you’re in Canada and seeking alternatives to Ally Bank’s digital-first approach and competitive rates, several local options offer similar or enhanced services. These institutions provide user-friendly platforms, low or no fees, and efficient money transfer capabilities. Below is a comparison of top Ally Bank alternatives tailored for Canadians:
| Alternative Name | Best For | Cost to Send Money in Canada | Cost to Send Money to the U.S. | Extra Perks |
| Tangerine | Everyday banking with no fees | Free Interac e-Transfers® | Up to $50 per wire transfer | No monthly fees; access to 3,500+ Scotiabank ABMs; mobile banking app |
| CurrencyFair | International money transfers | Not specified | C$4 flat fee; ~0.53% FX margin | Transfers to 150+ countries; competitive exchange rates; user-friendly app |
| EQ Bank | High-interest savings and transfers | Free Interac e-Transfers® | Fees via Wise integration | No monthly fees; 0.5% cashback on purchases; free ATM withdrawals in Canada |
| Simplii Financial | Global money transfers | Free Interac e-Transfers® | No transfer fees | Send up to $75,000 to 130+ countries; no monthly fees; access to CIBC ATMs |
| KOHO | Budgeting and cashback rewards | Free with conditions | Varies by plan | Up to 2% cashback; budgeting tools; credit building features |
FAQ
Can I transfer money between Ally Bank and Canadian banks?
Ally Bank does not support outgoing international wire transfers, including to Canadian banks. However, you can receive international wire transfers into your Ally Bank account. To do so, the sender must use Ally’s designated intermediary bank, JP Morgan Chase Bank, N.A., and include specific routing and account details to ensure proper crediting to your Ally account. For sending money from Ally Bank to Canada, you would need to use a third-party service like Wise or OFX, which can facilitate international transfers by linking to your Ally account.
Does Ally Bank support Canadian credit cards or debit cards for payments?
Ally Bank’s credit and debit cards are primarily issued to U.S. residents and are designed for use within the United States. While these cards can be used internationally where Mastercard is accepted, including in Canada, they are not issued to Canadian residents. Additionally, Ally Bank does not support the use of Canadian-issued credit or debit cards for making payments to Ally accounts. Therefore, Canadian residents cannot obtain Ally Bank cards or use their Canadian cards to transact directly with Ally Bank.
Can Canadians access Ally Bank’s investment services from Canada?
Ally Invest, the investment arm of Ally Bank, requires account holders to be U.S. citizens or legal permanent residents with a valid U.S. address and Social Security number. As such, Canadians without U.S. residency or citizenship are not eligible to open or manage accounts with Ally Invest. This restriction means that Canadian residents cannot directly access Ally Bank’s investment services.
