
It can happen— you buy tickets for that important trip home only to forget about the automatic bill payment scheduled for the same day, and now your account is in the red. Whether it’s a one-time high-ticket item, an emergency, or simply the month getting away from you, a well-intentioned purchase can quickly become a setback— an overdraft. Two years into pandemic living, we feel it’s more important than ever to have our customers’ backs. That’s why we’re introducing CoverDraftSM, a fee-free “safety net” for accidental overdrafts.
CoverDraftSM — How Does It Work?
In most cases, you’ll qualify for CoverDraft 30 days after you deposit a total of $100 into your Ally Bank Interest Checking account. That means if you accidentally overspend in cases where CoverDraft applies, we have your back. CoverDraft will cover up to $100 of qualifying transactions and you’ll have 14 days to deposit funds to bring your account out of the negative. And the best news? There are no hidden fees, no interest charges, no requirement to set up direct deposit or maintain a minimum balance. The next deposit you make will automatically apply to the negative balance, and when CoverDraft applies, you’ll have a safety net for those tricky moments.
CoverDraft acts as a safety net. Keep in mind, it’s not a line of credit or a guarantee. If your purchase isn’t covered for any reason (let’s say the transaction exceeds your CoverDraft limit, for example), it will be declined – but we’ll never charge you an overdraft fee.
Here is a quick breakdown of which transactions are typically covered by CoverDraft (and which aren’t).

CoverDraft Works Together With Overdraft Transfer Service
CoverDraft complements our Overdraft Transfer Service to protect you from accidental overdrafts. Using the two services in concert allows you to use your own money with Overdraft Transfer Service, then CoverDraft can act as an added protection, giving you a one-two punch against overdrafts.
All it takes to use Overdraft Transfer Service is linking your Ally checking and saving accounts (Online Savings Account or Money Market Account). Then if you have an overdraft, Ally will first move money in $100 increments from your savings and if that’s not enough to cover the transaction, CoverDraft can kick in with up to $100 additional coverage.
Why We’re Changing the Game
CoverDraft is part of Ally’s mission to “Do It Right” for our customers. With our no-fee Overdraft Transfer Service and CoverDraft, we are demonstrating our commitment to reducing stress and confusion in banking. And guess what? We’re not done yet. Later this year, customers with qualifying direct deposits into an Ally Bank Interest Checking Account can receive up to $250 in temporary overdraft coverage. Customers will also have the ability to customize their CoverDraft limit and access their paycheck up to two days early later in the year as well. For all things money, we’re all better off with an ally.
Bank with confidence and peace of mind.
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Comment on this article
Comments
Ferguson A. on January 31, 2022 at 11:12am
Nothing to say
Opt O. on January 31, 2022 at 12:55pm
How do I Opt Out of this service? If my account has items presented with insufficient funds, I do not want them paid.
Ally on January 31, 2022 at 12:56pm
Hi, please give us a call at 1-877-247-2559, so we can assist further.
Barbara M. on January 31, 2022 at 1:14pm
I think it’s a smart idea! Thank you for being there for us!
Ally on January 31, 2022 at 1:15pm
Hi Barbara, thanks for being an Ally customer!
Rich on January 31, 2022 at 1:54pm
It is not clear if this is automatic or manually selected and if automatic, if it can be switched off.
Ally on January 31, 2022 at 1:55pm
Hi Rich, CoverDraft was rolled out on January 29th, and enrollment is automatic 30 days after you deposit at least $100 into your checking account. Check out this link to learn more: https://www.ally.com/help/bank/overdraft-protection.html.
Marie M. on January 31, 2022 at 2:10pm
No comment
Deborah A. on January 31, 2022 at 2:17pm
I think it is a great idea.
Erin on January 31, 2022 at 2:29pm
So how do I enroll for this overdraft if I already have an account with ally checking?
Ally on January 31, 2022 at 2:30pm
Hi Erin, enrollment is automatic 30 days after you deposit at least $100 into your checking account. You can learn more here: https://www.ally.com/help/bank/overdraft-protection.html.
Serigne L. on January 31, 2022 at 2:40pm
I love this new feature
Jan on January 31, 2022 at 2:43pm
Thank you ! One more reason to stay with Ally !
Ally on January 31, 2022 at 2:44pm
We love hearing this, Jan!
Sarah K. on January 31, 2022 at 4:39pm
I need this service for my rent payment which comes out between the first and 5 th of the month and my extra money comings in usually the next week. I will transfer my retirement money ($410.00). but will still be short til my January swim teaching money arrives
Ally on January 31, 2022 at 4:40pm
Hi Sarah, if you have any further questions, our team will be happy to discuss! Please reach out to us at 1-877-247-2559, so we can assist.
Darrell B. on January 31, 2022 at 4:44pm
I have moved my money and some investing to Ally because you support your clients in clear, understandable ways.
Ally on January 31, 2022 at 4:45pm
Thanks Darrell, for the love! We’re committed to making banking simple, transparent, and as stress-free as possible.
Walter H. on January 31, 2022 at 6:48pm
Thanks 🙏
Iocenth H. on January 31, 2022 at 8:38pm
Great
ARTHUR C. on February 1, 2022 at 5:42am
THANK YOU. MAKES ME FEEL WANTED AND APPRECIATED.
Ally on February 1, 2022 at 5:43am
We’re so happy to hear this, Arthur!
Richard L. on February 1, 2022 at 8:45am
How do I enroll?
Ally on February 1, 2022 at 8:46am
Hi Richard, thanks for your interest! Enrollment is automatic after depositing at least $100 into your checking account. To learn more about CoverDraft, check out this link: https://www.ally.com/help/bank/overdraft-protection.html.
Wesley M. on February 1, 2022 at 10:28am
You start this out as a point to almost understand your meaning? So if I have $100 in my checking you will cover my spending up to $100 more than what I physically had in my account. I must have deposited money into my account 30 previous to any overage I occurred? I must pay it back within 14 days or I will be punished? Then Ally can refuse any overage transaction at anytime without due cause? So Ally negates all responsibility to cover the overage that was previously mentioned. So if a Ally customer with a checking account was to believe that their purchase was backed by Ally's promise through coverdraft then finds out after the transaction is denied. The customer is to fault and will then start the penalties chase game eventually loosing? So this non-binding promise is to confuse checking account customers why???
Ally on February 1, 2022 at 10:29am
Hi Wesley, you can learn more about CoverDraft here: https://www.ally.com/help/bank/overdraft-protection.html. If you have any further questions, our team will be happy to discuss! Please reach out to us at 1-877-247-2559, so we can assist.
Robert N. on February 1, 2022 at 1:00pm
That's very thoughtful of you.
Ally on February 1, 2022 at 1:01pm
Hi Robert, we’re happy to be a true ally to our customers.
Marc S. on February 1, 2022 at 1:07pm
This article told me everything except how this applies to me in my account. At the bottom there is an option to open an interest checking account but I’m not sure if that’s a requirement. How do I turn this on for my account?
Ally on February 1, 2022 at 1:08pm
Hi Marc, you become eligible for CoverDraft when you open an Ally Bank Interest Checking account in your name, and deposit a total of $100 into your account. In most cases, you'll qualify for CoverDraft 30 days after your total deposit of $100. If we have your email address on file, we'll send you an email when CoverDraft is activated. Visit this link to learn more: https://www.ally.com/help/bank/overdraft-protection.html.
Enid R. on February 1, 2022 at 3:49pm
Wow...you guys are awesome for helping us like that. Love having an account with ALLY.
Ally on February 1, 2022 at 3:50pm
Hi Enid, thanks for being an Ally customer!
Mark L. on February 1, 2022 at 6:17pm
Now that's genius leadership for banking in the 21st century & beyond. Thank you so much. Great moral courage in leadership at the corporate level. I'm so impressed.
Ally on February 1, 2022 at 6:18pm
Hi Mark, we love hearing this. Thanks for the shout-out!
Daniel on February 2, 2022 at 9:46am
Wow, this only proves to what I have been saying about Ally for years. Ally has been a great ally in managing my money for 10 years now and with access to your paycheck up to 2 early, how could you go wrong!
Ally on February 2, 2022 at 9:47am
Thanks for the love, Daniel!
Benjamin on February 2, 2022 at 11:51am
Would there be a way to simply send a text message when an account is overdrawn? Every time that I've overdrawn an account it was due to a miscalculation in moving money from one account to another, but I've always had sufficient funds in Ally overall. If I received a text alert or an app notification, I could move money as soon as the account was overdrawn and have the issue corrected the day it happened instead of days later when I find out as things are right now. Just a thought.
Ally on February 2, 2022 at 11:53am
Hi Benjamin, please give us a call at 1-877-247-2559, so we can discuss this with you further.
Rex M. on February 2, 2022 at 7:51pm
I like the attitude of “Do no Harm” . While I have overdraft protection already, there are lots of folks that don’t. Thanks for standing up for the little guy!
Ally on February 2, 2022 at 7:52pm
Hi Rex, we’re always on a mission to #doitright!
Ismail A. on February 3, 2022 at 2:02am
I like to have overdraft protection
Ally on February 3, 2022 at 2:03am
Hi Ismail, Ally Bank was the first major bank to eliminate overdraft fees completely, and that doesn’t change with CoverDraft! Learn more here: https://www.ally.com/help/bank/overdraft-protection.html.
Jean on February 3, 2022 at 6:57am
I’d Ike to sign up
Ally on February 3, 2022 at 6:58am
Hi Jean, thanks for your interest! CoverDraft was rolled out on January 29th, and enrollment is automatic 30 days after you deposit at least $100 into your checking account. Check out this link to learn more: https://www.ally.com/help/bank/overdraft-protection.html.
Shannon N. on February 3, 2022 at 10:07pm
Wish you cared about fraudulent charges! My account went into overdraft because some crook used my info to make multiple purchases from coinbase. I reported it as soon as the transactions appeared on my account and began disputes on each charge as soon as they posted. The overdraft protection hasn't kicked in and I'm still unclear if Ally is going to credit me. My old bank would have issued credits by now. I'm so disappointed in Ally!
Ally on February 3, 2022 at 10:08pm
Hi Shannon, we hear your concern. Please give us a call at 1-877-247-2559, so we can discuss this further with you.
FRANCISCO B. on February 4, 2022 at 8:37am
Good to know...
Alisa W. on February 4, 2022 at 5:06pm
Makes perfect sense.
Ally on February 4, 2022 at 5:07pm
Hi Alisa, we’re happy to be a true ally to our customers!
Steven on February 5, 2022 at 5:36pm
Great going Ally. Overdraft fees are the biggest scam going. This will force other large banks to change their fees, or I'm sure you guys will be expanding your customer base. Great changes! ( Also I'm an Ally Stock holder)
Ally on February 5, 2022 at 5:37pm
We’re happy to hear this, Steven! Thanks for being an Ally customer.
Janice on February 5, 2022 at 6:09pm
Sounds good
Susan H. on February 6, 2022 at 9:43am
I am interested in doing this. Please advise. Thanks. Susan
Ally on February 6, 2022 at 9:44am
Thanks for your interest, Susan. To learn more, click here: https://www.ally.com/help/bank/overdraft-protection.html.
dawn on February 6, 2022 at 2:06pm
Thank you Ally!
Anthony B. on February 6, 2022 at 2:49pm
These type of financial practices are why I switched from a major back to Ally.
Ally on February 6, 2022 at 2:50pm
Hi Anthony, thanks for the love! We’re committed to making banking simple, transparent, and as stress-free as possible.
Lorre on February 6, 2022 at 4:44pm
I wonder how many times this is limited to?
Ally on February 6, 2022 at 4:45pm
Hi Lorre, you can learn more here: https://www.ally.com/help/bank/overdraft-protection.html.
Rena W. on February 7, 2022 at 8:56am
I hate overdrafting. I like the idea. But being accountable yourself is always best!
Jacqueline on February 7, 2022 at 10:44am
Thanks for your commitment to customer service.
Ally on February 7, 2022 at 10:45am
Hi Jacqueline, we’re so glad you’re excited about the recent news!
Javier R. on February 7, 2022 at 5:48pm
Your bank is the best! Keep up the great work. Thanks for all the help.
Ally on February 7, 2022 at 5:49pm
Thanks for the love, Javier!
Bruce V. on February 10, 2022 at 1:30pm
How does a current account holder (4 accounts total) get in on this offer?
Ally on February 10, 2022 at 1:31pm
Hi Bruce, CoverDraft was rolled out on January 29th, and enrollment is automatic 30 days after you deposit at least $100 into your checking account. Check out this link to learn more: https://www.ally.com/help/bank/overdraft-protection.html.
Chris D. on February 14, 2022 at 4:07pm
Probably the best bank Ive ever had. Ill recommend you to friends.
Ally on February 14, 2022 at 4:08pm
Thanks for the love, Chris!
Chase on February 14, 2022 at 5:30pm
Love this idea. It's a great peace of mind to have for that 'just in case' moment. I have never not been happy with my decision to give up traditional brick & mortar banking for Ally, tho I know there are people who need the brick & mortar stores. Another customer-focused decision. Thanks Ally!
Ally on February 14, 2022 at 5:31pm
Hi Chase, we’re happy to hear this! We’re always on a mission to do right by our customers.
Tom v. on February 21, 2022 at 1:36pm
Good to know. thanks for being upfront about this
Gloria R. on March 20, 2022 at 6:09pm
I appreciate very much about Cover Draft
Ally on March 20, 2022 at 6:10pm
Hi Gloria, we’re happy to hear this!
Gregory L. on March 23, 2022 at 6:37am
Very nice getting all the procedures and processes of my accounts. Very helpful information.
Ally on March 23, 2022 at 6:38am
We’re happy to hear this, Gregory!
Anessa on April 1, 2022 at 9:15pm
Thank you for doing this. I'm working on leaving my bank because I had some bad finances hit at the beginning of the month and ended up owing over $400 in overdraft fees before I was able to correct the problem. Appreciate that you guys are actually trying to help.
Ally on April 1, 2022 at 9:16pm
Hi Anessa, we’re happy to be a true ally to our customers.