Ally Everyday Cash Back Mastercard®

In 2022, Ally Bank introduced three credit cards: the Ally Everyday Cash Back Mastercard®; the Ally Unlimited Cash Back Mastercard®, and the . All three cards require an invitation to apply, even if you’re currently a customer with the bank. This particular card is a rewards-earner offering a simple cash rewards structure with no annual fee. But how does it stack up against other cash back credit cards? We put it to the test in this Ally CashBack credit card review.

Before establishing their inaugural credit card, Ally Bank conducted a series of surveys to find out exactly what the market sought. Their findings?

Of credit card-users surveyed, 58% said they preferred a cash back option over travel rewards, gift cards, or even introductory interest rates. On top of that, 80% of respondents said that if rewards were earned, they would prefer to hold various financial products — such as loans, checking/savings accounts, and credit cards — with the same bank, rather than spread them out.

Ally took this information and created the Ally Everyday Cash Back Mastercard®, which I expect to hold its own among other cash back offers out there. Here is a bit more about the card:

The Ally Cash Back Card Rewards

In an attempt to be beneficial to all cardholders, Ally eliminated rotating categories and gave its highest cash back rate (3%) to the categories that apply to pretty much everyone: gas, groceries and drugstores.

While there are cards that offer higher percentages for these categories, they are often rotating (such as 5% back with Discover It® Cash Back Credit Card and Chase Freedom Flex® during those promotional quarters). The exception would be my personal favorite, the Blue Cash Preferred® Card from American Express — which offers up to 6% cash back at U.S. supermarkets and 3% at U.S. gas stations — though that card also includes an annual fee.

For all purchases not involving gas, groceries, or drugstores, the Ally Everyday Cash Back Mastercard® gives 1% back. There is no limit on rewards, and they do not expire as long as your account is in good standing.

Bonus — If you’re a customer with the bank, you’ll receive an additional 10% cash back when you deposit your rewards into an Ally non-IRA Online Savings, Interest Checking, or Money Market account. This convenience factor is similar to Fidelity® Rewards Visa Signature® Credit Card, though that one does not offer a bonus for redeeming into existing accounts, as you’ll get from Ally.

The Drawbacks

Its 3% cash back on groceries, drugstores, and gas is a solid offering, though other cards may offer more at times. For example, Chase Freedom Flex® offers 5% back on both gas and groceries — the caveat being that it’s a rotating, quarterly category (so, you don’t get that rate year-round). For some, the Blue Cash Preferred® Card from American Express may be the best option, with 6% back all year at U.S. supermarkets (on up to $6,000 in spend) and 3% all year at U.S. gas stations.

None of the Ally cards come with welcome offers, which is a drawback. And you’ll need to be an Ally customer to get an invite to apply. Another drawback is the annual fee is between $0 and $39, depending on your offer. If you get a card with an annual fee, consider shopping around a bit before you apply.

In Summary

There are cards out there that offer a higher percentage of cash back. It will be interesting to see how the new Ally card competes in the cash back arena, but it seems to be a strong contender right out of the gate.

Below we recap the features, fees, credit score requirements, and alternatives.