Introducing CoverDraft — take the stress out of accidental overspending
Jan. 30, 2022 • 3 min read
What we'll cover
What CoverDraft is and how it works
What CoverDraft does and does not cover
Why we've introduced this feature
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. 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.
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