UPDATE: As of June 17, 2019, the Ally CashBack Credit Card is no longer available to new applicants. Existing cardmembers can continue to use the card as usual with no change to features, benefits and terms (until further notice).
Ally Bank, long known for high interest rates on its online savings accounts and certificates of deposit (CDs), just launched its very first credit card.
The Ally CashBack Credit Card was designed to help people earn cash back on their everyday spending, especially when fueling up the car or stocking the food pantry.
There’s also a generous cash back bonus for Ally customers who deposit their rewards into their Ally bank account.
Curious to see if this card might be good for your wallet? Read on for more details about the card in our review.
Ally Credit Card Rewards Focuses on Gas and Groceries
Ally CashBack Card Pros & Cons
The most important feature of the Ally credit card is the 2% cash back at gas stations and grocery stores.
Meanwhile, all other spending is rewarded with 1% cash back. The cash back doesn’t expire, nor is there a limit to how much cash back you can earn.
The cash back can be redeemed as a direct deposit into an Ally Bank account or as a statement credit.
Gas and groceries are among the two most common household spending categories, which is why many credit cards target consumers by offering bonus cash back rates for these two categories.
These cards include the popular American Express Blue Cash Everyday, which offers slightly better cash back rates, but impose earnings limits on those categories.
Ally CashBack vs. Amex Blue Cash Everyday
|Credit Cards||Cash back rate on gas||Cash back rate on groceries||Earnings limits|
|Ally CashBack Credit Card||2%||2%||No limits|
|American Express Blue Cash Everyday||2%||3%||Up to $6,000 spent per year on groceries|
Compared to these two other cash back credit cards, the Ally Credit Card beats them when your gas and grocery spending become very high.
Ally Relationship Cash Back Bonus
For Ally customers who have an online savings, money market, or checking account, there is a 10% bonus if you redeem your cash back into one of those accounts.
Therefore, your cash back rate on gas and groceries increases to 2.2% while your cash back rate on everything else becomes 1.1%.
Don't have an Ally bank account and aren't sure if opening one is worth this extra reward?
It's worth noting that Ally’s bank accounts happen to be some of the most competitive out there, especially because of their high interest rates:
- Online Savings: A high-yield online savings account with no monthly fee.
- Money Market Account: An MMA with a debit card, checkbook, and no monthly fee.
- Interest Checking Account: An interest-bearing checking account with ATM fee reimbursements ($10 max) and no monthly fee.
The ideal customer for this card (or someone who'll get the most out of the rewards) would be anyone who is or wants to be an Ally Bank customer and who spends a good portion of their income on gas and groceries.
Ally CashBack credit card earnings scenarios
|Spending category||Amount spent per year||Cash back earned||Cash back earned (deposited into Ally account)|
No Annual Fee
Like many cash back credit cards, the Ally CashBack card does not charge an annual fee. That's even more of a reason to hold onto the card and make use of it whenever possible.
Convenient perks through Visa Signature
The Ally CashBack Credit Card carries the Visa Signature logo, which means that it comes with a long list of free, handy card benefits.
One of the most noteworthy perks is the personal concierge, someone who can effectively act as your personal assistant. Your personal concierge can help you with research on shopping, entertainment, and travel.
Another benefit worth mentioning is the auto rental collision damage waiver. Essentially, it will cover the damage due to collision or theft of most car rentals that are charged to the card.
Other Visa Signature perks include:
- Lost luggage reimbursement
- Discounted rates on hotels, cruises, car rentals and more through Visa partners
- Purchase protection and extended warranty
- Travel accident insurance
When you're in a jam and need quick assistance, these perks can be invaluable.
With some similar cash back credit cards on the market, the Ally CashBack Credit Card is ideal for a very specific type of consumer.
The Visa Signature perks are great to have as well, but they can also be found with many other credit cards.
Again if you are or want to be an Ally Bank customer (something worth looking into if you're looking for a high-yield savings account) and you spend frequently at gas stations and grocery stores, then this card could be perfect for you.
That extra bonus you get for depositing your rewards into your Ally Bank account can add up nicely, especially when compounded with Ally's already high interest rates.
If you don't fit this type of spending profile, then you might find other cash back credit cards to be more suitable for your spending habits.