Ally CashBack Credit Card

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Recommended only for Ally Bank deposit account holders.

This card offer is currently unavailable on Bankrate. To see more cards in this category, please visit our cash back category page.

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The Ally CashBack Credit Card offered by the online bank of the same name just doesn’t have that wow factor we’ve seen in other cash-back cards. Offering a just-OK 2% rate on groceries and gas and 1% on all other purchases, Ally CashBack is easily bested by several others that offer greater rewards value and other perks.

That being said, this is a perfectly find credit card for someone who wants no complications, especially if you own an Ally Bank deposit account.

Review

Although there’s a lot to like about Ally Bank, the Ally CashBack Credit Card could use a little improvement.

First the good: There’s no annual fee, and you can earn a $100 bonus if you make $500 in eligible purchases within the first three months of opening the account.

Now the rest: There are several other cards on the market that offer better rewards. Even though this card comes with a 10% bonus if you deposit your earnings in an Ally bank account, this still isn’t a strong enough rewards rate to choose this card over another.

Ally pays an unlimited 2% back on all eligible grocery and gas spending. If you spend $500 one month at the supermarket and $500 on other purchases on the Ally CashBack Credit Card, you’ll earn $15 back in rewards, plus another 15 cents if you deposit it into your Ally account. If you spent that same $500 at the supermarket and another $500 on other purchases using a card like the Citi Double Cash, which pays 1% when you buy and another 1% when you pay your bill, you’d earn a total of $20 cash back for the same amount.

There are also cash back credit cards that pay bigger rewards specifically on groceries or gas, although these typically have spending caps or are part of a rotating category program and good for only a limited time. Still, the Ally CashBack Credit Card could stand to gain some other perks that might make it a better card, like an introductory 0% APR offer for example.

Who should get this card

This card might be right for you if you’re an Ally Bank customer and  you’re looking for an uncomplicated rewards credit card.

Advantages
  • The sign-up bonus is pretty easily attainable.
  • The rewards on grocery and gas spending are decent.
  • If you choose to have your rewards deposited into your Ally bank account you’ll get a 10% bonus.
Disadvantages
  • Other cards pay higher rates.
  • This card comes with a 3% foreign transaction fee, making it a poor choice for overseas travel.
  • If you close your account, you’ll forfeit any unredeemed cash-back earnings.

Fees and APR

  • Pay no annual fee.
  • The variable APR for purchases and balance transfers is 13.99% to 23.99% based on creditworthiness.
  • Pay a 3% foreign transaction fee on purchase made outside the U.S.
  • Balance transfer fee is $5 or 3% of the amount transferred, whichever is greater.
  • Late payments won’t affect your APR, but you may be subject to a late fee of up to $35.

Extras, perks and using points

Ally Bank pays a 10% bonus on all rewards deposited into an Ally bank account.

To redeem your points, log into your Ally account online and choose to either deposit the rewards into your account or receive them as a statement credit on your bill. You have to have a minimum of $25 worth of rewards in order to redeem. There is no charge to redeem your rewards.

How this card compares

Citi® Double Cash Card
Card Details
  • Earn cash back twice on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
  • Balance Transfers do not earn cash back
  • 0% Intro APR on Balance Transfers for 18 months. After that, the variable APR will be 14.49% - 24.49% based on your creditworthiness
  • Click 'Apply Now' to see the applicable balance transfer fee and how making a balance transfer impacts interest on purchases.
  • No categories to track, no caps on cash back, no annual fee*
Credit Needed Excellent
Regular APR 14.49% - 24.49%* (Variable)
Annual Fee $0*
Purchase Intro APR N/A
Balance Transfers Intro APR 0% for 18 months*

When it comes to rewards value, the Citi Double Cash Card ranks among the very best cash-back credit cards that charge no annual fee.

So why, you might ask, does this card not receive a higher score from Bankrate? There are a couple reasons, but the main thing dragging this card down is this: Because Citi Double Cash offers no sign-up bonus, it struggles to compete with many cards in this category.

Fidelity® Rewards Visa Signature® Card

This card offer is currently unavailable on Bankrate. To see more cards in this category, please visit our cash back category page.

Card Details
  • Earn unlimited 2% cash-back on every net purchase.
Credit Needed Excellent
Regular APR 14.99%. This APR will vary with the market based on the Prime Rate.
Annual Fee No Annual Fee.
Balance Transfers Intro APR

The Fidelity Rewards Visa Signature Card offers a best-in-class unlimited 2% cash back on all purchases. You don’t need to have an account with Fidelity to apply for this card, but if you do, you can have your earnings deposited directly into your account or applied as a statement credit to your card. This card also comes with Visa Signature benefits.

Chase Freedom Unlimited®
Card Details
  • Unlimited 1.5% cash back on every purchase — it's automatic
  • Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening
  • 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 15.99-24.74%. Balance transfer fee is 5% of the amount transferred, $5 minimum
  • No minimum to redeem for cash back
  • Cash Back rewards do not expire as long as your account is open
  • No annual fee
Credit Needed Good
Regular APR 15.99% - 24.74% Variable
Annual Fee $0
Purchase Intro APR 0% for 15 months
Balance Transfers Intro APR 0% for 15 months

The Chase Freedom Unlimited is a solid, straightforward cash-back rewards card that’s ideal for cardholders who just don’t have the time or energy to track spending categories. It ranks among the very best cash-back credit cards we track.

There are other cards that offer better rewards, but the Freedom Unlimited’s 1.5% cash back on everything is an excellent reward coming from a no-annual-fee credit card.

Blue Cash Everyday® Card from American Express
Card Details
  • $150 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months.
  • No annual fee.
  • 3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%).
  • 2% cash back at U.S. gas stations and at select U.S. department stores, 1% back on other purchases.
  • Low intro APR: 0% for 15 months on purchases and balance transfers, then a variable rate, currently 13.99% to 24.99%.
  • Expanding merchant acceptance: Over 1 million more places in the U.S. started accepting American Express® Cards in the last year.
  • Cash back is received in the form of Reward Dollars that can be easily redeemed for statement credits, gift cards, and merchandise.
  • Terms Apply.
  • See Rates & Fees
Credit Needed Excellent
Regular APR 13.99%-24.99% Variable
Annual Fee $0
Purchase Intro APR 0% on Purchases for 15 months
Balance Transfers Intro APR 0% on Balance Transfers for 15 months

Depending on your spending habits, the no-annual-fee Blue Cash Everyday Card from American Express may ultimately give you better cash-back earnings with a rate of 3% at U.S. supermarkets (up to $6,000 in spending annually, then 1%), 2% at U.S. gas stations and select U.S. department stores and 1% on all other eligible purchases.

EDITORIAL NOTE

Opinions expressed here are author's alone, not those of any bank, credit card issuer, airlines, or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.