Overdraft Protection FAQs
FAQs
If you overdraw more than your limit and your balance falls below $0, you'll have 14 days to bring it back out of the negative — we may restrict purchases and withdrawals after that.
If your account balance is still negative after 45 days, we may close your account.
Nope. CoverDraft is a free feature we offer for eligible accounts.
Yes. Go to CoverDraft from your Account Details to make changes.
Keep in mind, you can't change your CoverDraft settings if your balance is negative.
Yes. You can opt in or out of CoverDraft from your account. Go to CoverDraft from your Account Details to make changes.
Keep in mind, you can't change your CoverDraft settings if your balance is negative.
Of course. We'll send you an email.
You can also sign up to receive text alerts when you overdraft your account.
We'll use Overdraft Transfer Service to transfer money in increments of $100 from a linked savings account if you don't have enough to cover a transaction with your checking account.
When it’s turned on, we’ll check to see if there’s enough to cover the full transaction in your linked account. If not, we’ll check to see if you’re eligible for coverage through CoverDraft and use that instead.
CoverDraft acts as an overdraft safety net. We cover you up to $100 (or $250 if you set up qualifying direct deposits) on checks and transfers, debit card purchases, and bill payments, at no charge. In most cases, you'll qualify for CoverDraft 30 days after you deposit a total of $100 into an Ally Bank Spending Account.
Keep in mind:
CoverDraft isn't a line of credit or a guarantee. If your purchase isn't covered for any reason (if the transaction exceeds your CoverDraft limit, for example), it will be declined - but we'll never charge you an overdraft fee.
We'll automatically apply your next deposit to your negative balance, like when you deposit a check, get a direct deposit, or receive a wire transfer.
You'll still have full access to your CoverDraft limit for 14 days if your account balance goes negative.
First, you'll need to qualify for the standard $100 CoverDraft protection. Then, you'll need to receive a qualifying direct deposit (payments through an employer, business, or government program that uses direct deposit) of at least $250 for 2 months in a row.
We'll let you know when you're eligible for the expanded CoverDraft protection. Then you can log in and change your preferences to match this higher amount.
Keep in mind
You'll need to receive at least 1 direct deposit every 45 days to keep this expanded protection.
CoverDraft typically covers:
Debit card purchases, including ones with cash back
Automatic payments, like monthly subscription fees or utility bills
Transfers you initiate at other institutions
Personal checks or mailed Bill Pay checks
CoverDraft doesn't cover:
Zelle® payments
ATM withdrawals
Immediate internal transfers between Ally Bank or Ally Invest accounts
Wire transfers
We help you avoid overdrafts by declining these transaction types if you attempt to conduct one for an amount greater than your balance.
Additionally, we may pay or decline a transaction which would overdraft your account by more than your CoverDraft limit, but we'll never charge you an overdraft fee.
CoverDraft eligibility
If you have a Spending Account with us, you’ll become eligible for CoverDraft 30 days after depositing a total of $100. We’ll activate it automatically and send you an email when we do.
Expanded coverage up to $250
After you’ve qualified for the standard $100 protection, you’ll need to receive a qualifying direct deposit (payments through an employer, business, or government program that uses direct deposit) of at least $250 for two months in a row. We’ll let you know when you’re eligible for expanded protection. Then, you can log in and change your preferences to a higher amount. Keep in mind: you’ll need to receive at least 1 direct deposit every 45 days to keep this expanded protection.