Ally Bank Spending Account

Why We Like It

Ally's Spending Account pays interest on checking — rare and valuable. Paired with their 4.20% savings account, it's the best banking setup for college students who want their money working for them while they focus on school.

Pros & Cons

Pros

• 0.25% APY on checking — one of few checking accounts that pays interest
• Link to 4.20% APY savings — best high-yield savings in class
• Up to $10/month in out-of-network ATM fee reimbursements

Cons

• No physical branches — entirely online
• Limited ATM deposit options

Score Breakdown

We ranked 5 student checking accounts. Criteria: monthly fees and how student waivers actually work; ATM density around campuses and out-of-network reimbursement; overdraft philosophy (decline vs. penalty); mobile deposit, card lock, and parent-to-student transfers; and what the account costs after graduation. FDIC or NCUA insurance is treated as a floor, not a differentiator. We did not invent a larger research set.