The latest FUD - large banks are now banning credit card crypto purchases while others are charging "cash advance" fees.
With the popularity increase of crypto currencies, this was unfortunately inevitable as it threatens the very existence and value of banks. I have seen people all around crypto forums, Reddit and Facebook pages complaining about issues with their banks and crypto. Instead of replying to every post, I decided to go ahead and talk about a great alternative bank that has been very crypto friendly to me.
Over the last year, my wife and I have been using Ally bank (http://www.ally.com). Ally is an online only bank, meaning it has no brick and mortar locations. While this may scare some who have used a brick and mortar bank their whole life, not having any physical locations is actually better for you. They have 24/7 support as well as an online chat feature that has very short wait times (usually 2-5mins).
Currently, I have had 0 issues using Ally bank to buy crypto. I've purchased thousands using my debit card and by linking my bank account to Coinbase. I haven't purchased with a credit card yet (because I'd rather not pay the fees), but Ally hasn't announced they are against crypto buying with their credit cards. In fact, they Here are some pros that convinced me to make the switch to an online only bank.
PROS
CHECKING ACCOUNT
No fee checking account. It costs nothing to open and you don't have to maintain a minimum balance. Most banks charge you if you don't have money in your account. This is not true for Ally. They also offer interest in your checking account, meaning you can keep your cash liquid while still earning minor interest. It's not a lot (0.1%), but hey, it's something!
You’ll also get free checks from Ally Bank, and you can reorder basic checks at no cost. This distinguishes it from other financial institutions which charge customers for check reorders.
MULTIPLE ACCCOUNTS
Opening new savings and checking accounts takes about 3-5 minutes. My wife and I personally have 4 checking accounts and two savings accounts. It helps keep our finances extremely organized.
We have a main checking account for daily purchases and bills, a personal "play" money account for each of us (so both of us have money that we can do whatever we want with, helps to avoid arguments!), a freelancer account for side gigs, a regular savings for our long term goals, and a savings account for taxes (because taxation is theft).
SAVINGS
1.35% APY on the Ally Online Savings account is competitive with other online-only savings accounts in the market. Overall, this account is much better in rates and fees than a brick-and-mortar savings account, but similar to other online-only competitors.
DEPOSITS
With their mobile app, you can easily deposit checks by taking pictures.
BILL PAY
Free!
UNIVERSAL ATM WITHDRAWL
Need cash? You can withdraw from any ATM. Ally even reimburses up to $10 in transactions fees a month. Another reason why brick and mortar is useless.
TRANSPARENCY
Ally is by far the clearest about fees of any of the banks I’ve researched, whether online or brick and mortar. Each product has a “Straight Talk Product Guide” that lays out everything you need to know about fees as well as important details such as when your money will be available.
CREDIT CARD
As of yet - doesn't ban crypto purchasing, so if that is your thing, that is a huge plus. I personally don't have a credit card through Ally yet, so I won't go for a full review, but you can see more here (https://www.highya.com/ally-cashback-credit-card-reviews)
CONS
-It lacks several relatively common products, including mortgages, small-business accounts, and brokerage accounts. If this kind of variety is important to you, you’ll probably need a brick-and-mortar bank.
-Depositing cash is an issue, since there is no brick and mortar location. Unless you have a job that pays you in cash, this shouldn't be an issue.
OTHER BANKS
While I don't know much about these other banks, there is a great list of crypto friendly banks building on Reddit
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Hopefully you found this helpful! Comment below if you know any other banks that are crypto friendly!
Good article. That said, I know a lot of people whose Credit Unions have been working just fine, including mine for all points you make.
Thanks! I actually used a local credit union before Ally, but my wife and I moved away from its location. But I've found that even credit unions don't have very good interest on savings. Online banks such as Ally cut out a lot of costs by not having brick and mortar and can easily pass on savings to the consumer.
This article actually helps. Thanks 😊
Happy to hear!
its understandable and inevitable that credit card issuers have banned joe public from getting more in debt and the credit bubble can really burst for the banks with card defaulters who lost money in FOMO !
BUT they can never stop a decentralised blockchain ever! Just make it harder to convert fiat 2 BTC
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