Overdraft Protection FAQs
FAQs
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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.
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Nope. CoverDraft is a free feature we offer for eligible accounts.
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Simply put, you'll have a double line of defense against overdrafts.
When you activate Overdraft Transfer Service, we'll 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.
If you don't have enough money in your linked account to cover an overdraft, then we'll use CoverDraft for eligible transactions.
Watch a quick video about CoverDraft and Overdraft Transfer Service working together
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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.
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- Zelle® payments
- ATM withdrawals
- Immediate internal transfers between Ally Bank or Invest accounts
- Wire transfers
CoverDraft also doesn't cover transactions that would overdraft your account by more than your CoverDraft limit.
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You'll still have full access to your CoverDraft limit for 14 days if your account balance goes negative.
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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.
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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. -
Of course. We'll send you an email.
You can also sign up to receive text alerts when you overdraft your account.
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We may restrict purchases and withdrawals from your account.
If your account balance is still negative after 45 days, we may close your account.
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We may restrict purchases and withdrawals from your account until you bring your balance back to $0 or more.
If your account balance is still negative after 45 days, we may close your account.
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- 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
We'll decline some transactions that would overdraft your account, including:
- Zelle® payments
- ATM withdrawals
- Immediate internal transfers between Ally Bank or Invest accounts
- Wire transfers
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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 CoverDraft automatically, and send you an email when we do. You can turn CoverDraft off any time, as long as your account balance isn’t negative.
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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.