Ally vs Capital One 360 – Which Bank is Best for You?

Ally vs Capital One 360 – Which Bank is Best for You?

Ally Bank and Capital One 360 have similar annual percentage rates (APY) and features such as savings, checking, CDs, mortgage, and auto loans. While both excel in online and mobile banking, differences in fees and products may have you leaning toward one more than the other.

Check out our Ally vs Capital One 360 in-depth review to see which one is right for you.

The Main Differences Between Ally Bank vs Capital One 360

The Main Differences Between Ally Bank vs Capital One 360 are:

  • Ally Bank offers an investment platform, whereas Capital One 360 does not.
  • Ally Bank offers 24/7 human customer service, whereas Capital One 360 only offers human customer support during business hours.
  • Ally Bank CDs start at 3 months, whereas Capital One 360 CDs start at 6 months.
  • Ally Bank charges a daily overdraft fee ($25), whereas Capital One 360 does not.
  • Ally Bank does not offer credit cards and business services, whereas Capital One 360 does.
  • Ally Bank does not offer kid and teen-specific accounts, whereas Capital One 360 does.

Who is Ally Bank For?

ally bank

If you are looking for an online bank with strong interest rates, Ally Bank is a solid choice. It also gets high praises for 24/7 human customer support, a service that is not provided by Capital One 360.

Take advantage of its integrated investment platform (Ally Invest). You can even get free anti-virus and anti-malware protection for up to 3 devices just by being a customer.

Features

Checking

With no minimum deposit or monthly fees, the Ally Interest Checking Account is appealing to a wide range of customers. Other benefits include a free debit card, free bill pay, and free checks. Even with an Allpoint ATM network of over 55,000 ATMs, Ally will reimburse you up to $10 per month if you manage to find an ATM out of network.

While there may be one elephant in the room of digital banks, i.e. no physical branches, users can use Ally’s easy to use the mobile app to deposit checks. A direct deposit option is available. Integration with Zelle helps you send and receive money from family and friends.

Current Ally Checking Account Rates

  • 0.10% annual percentage yield (APY) with less than $15,000 daily account balance
  • 0.50% APY with more than $15,000 daily account balance

Fees

  • $25 overdraft fee (charged once per day, regardless of how many times you overdraft in the same day)

Savings

There are no monthly fees for an Ally Savings Account. The account is also insured up to $250,000 by the FDIC.

Current Ally Savings Account Rates

  • 1.50% APY

Fees

  • After your first 6 transactions in a statement cycle, you will be charged $10 for every additional transaction.

Money Market

In addition to checking and savings, Ally also provides a money market account that has no monthly fees. You can also make unlimited deposits and withdraw funds through an ATM.

Current Ally Money Market Account Rates

  • 0.75% APY (all tiers)

CDs

If you are looking to lock-in interest for a lump sum of money, Ally has several CD options available. The longer the term you choose for your CD, the better the APY will be. Keep in mind if interest rates go up across the board, you won’t be able to take your money out of the CD until the term is complete.

Two other CD options include a raise your rate CD (1.50% APY), which allows you to increase your APY once (2-year term) or twice (4-year term). There is also a no-penalty CD option that has a lower rate of return but allows you to withdraw money during the term of your CD without any penalties. This option is available seven days after depositing money into your CD. Current rates: 1.40% (under $5,000), 1.50% ($5,000+), 1.55% ($25,000).

Current Ally CD Rates

  • 5-year CD – 1.60% APY
  • 3-year CD – 1.55% APY
  • 18-month CD – 1.75% APY
  • 12-month – 1.50% APY
  • 9-month CD – 1.00% APY
  • 6-month CD – 0.75% APY
  • 3-month CD – 0.50% APY

Ally Bank IRA CDs

ally bank 1

When you choose Ally Bank IRA High Yield CD, you receive their 90-day best rate guarantee. This guarantee is helpful if the market is volatile. You also have the option of Roth, SEP, or a traditional IRA. Other products include IRA Raise Your Rate CD (1.50%, 2-year, 4-year) and IRA Online Savings (1.50% on all balance tiers).

Current Ally IRA CD Rates

  • 5-year CD – 1.60% APY
  • 3-year CD – 1.55% APY
  • 18-month CD – 1.75% APY
  • 12-month – 1.50% APY
  • 9-month CD – 1.00% APY
  • 6-month CD – 0.75% APY
  • 3-month CD – 0.50% APY

Additional Services

Ally Bank offers auto loans and mortgage services. Ally also has an investment platform aptly named Ally Invest.

Customer Service

Ally Bank provides 24/7 customer service via phone and live chat. Both avenues feature human support which can be rare in a world of ever-growing chatbots.

Amazon Alexa users can also take advantage of an Ally Bank skill. After setting up the skill, you can ask Alexa to check the balance on your accounts, list recent transactions, transfer money, and current rates.

Security

Ally Bank has an online and mobile security guarantee that protects you from unauthorized transactions. To qualify for this service, you must call Ally at 1-877-247-2559 within 60 days of your statement date.

Since Ally Bank is online-only, its security is a top priority. Your account will also be protected with the following measures:

  • SSL encryption
  • 2-step authentication
  • Firewalls
  • Anti-virus and Anti-malware
  • Automatic logout
  • Account Monitoring
  • Credential confidentiality

Plus, Ally Bank customers are provided with free anti-virus and anti-malware software for up to 3 devices.

Who is Capital One 360 For?

capitalone

If you are tired of high overdraft fees from your current bank, Capital One 360 is worth looking into. Since Capital One 360 can offer no overdraft fees and a reasonable line of credit when you do ($1,000), you will pay a fraction of what you would with a traditional bank.

Capital One not only provides checking and savings but mortgages, auto loans, credit cards, and investment options. Plus, you can take advantage of all of these services online, via their mobile app, or in person at one of their branches. Capital One is an established bank that is protected by the FDIC. If you are timid about online banking, you will feel comfortable with Capital One’s proven history.

Features

Checking

Capital One 360 Checking is similar to their savings account, there are no fees and you can deposit checks via mobile. There are also several advantages of traditional brick and mortar banks such as no overdraft fees, over 40,000 fee-free ATMs (Allpoint and Capital One), a free debit card with no foreign transaction fees, and free online bill pay.

Since overdraft fees can be charged multiple times a day with some checking accounts, a no overdraft fee checking account is appealing for a wide variety of consumers. To provide you with this service, Capital One 360 gives you access to a line of credit (up to $1,000) when you overdraft your account. They will charge you interest (similar to a credit card, around 12% APY) that is accrued only for as long as your account is in the red.

However, if you are fortunate enough to carry a high balance in your checking account, you are better off choosing Ally over Capital One 360. Currently, Capital One 360 offers the same interest regardless of the amount in your account. Ally will up your interest to 0.60% of your balance is over $15,000.

Current Capital One 360 Checking Account Rates

  • 0.20% APY

Teen Checking Account

Capital One 360 also offers a teen checking account. The account has similar benefits to its main checking account including a 0.20% APY. Teens can also get texts when their balance runs low to help encourage smarter spending habits and prevent over-drafting.

Current Capital One 360 Teen Checking Account Rates

  • 0.20% APY

Fees

  • Up to $40 for wire transfers within the US (higher than the national average).

Savings

The Capital One 360 Performance Savings has a competitive APY. This savings account also boasts no fees and no account minimums. Diversify your savings goals with up to 25 free savings accounts.

Current Capital One 360 Savings Account Rates

  • 1.50% APY

Kids Savings Account

Financial education is an important step in ensuring your children are prepared to manage their finances. With the Capital One 360 Kids Savings Account, you can help your kids grow their money with a virtual piggy bank.

There are no fees or minimum balance to keep the account. You can even link your account to theirs for easy monitoring and transfers. Set up automatic deposits for their weekly or monthly allowance. Use the mobile app to set up savings goals.

Current Capital One 360 Kids Savings Account Rates

  • 0.50% APY

CDs

Capital One 360 offers a standard CD option and the rates are not as high as Ally’s current offerings. Capital One 360 suggests putting your money into a CD if you want to “set it and forget it”. If you need to withdraw money indefinitely, they suggest putting your money in their 360 Performance Savings account to avoid any penalties.

Current Capital One 360 CD Rates

  • 5-year CD – 0.85% APY
  • 4-year CD – 0.90% APY
  • 3-year CD – 0.90% APY
  • 2-year CD – 0.95% APY
  • 18-month CD – 1.00% APY
  • 12-month CD – 1.00% APY
  • 9-month CD – 0.80% APY
  • 6-month CD – 0.60% APY

Capital One 360 IRA CDs

Capital One 360’s IRA Cds are FDIC insured, offer tax benefits, and have a guaranteed return. Plus, when you open an IRA CD with Capital One, you will also receive a 360 IRA Savings account to help fund your CD.

Current Capital One 360 IRA CD Rates

  • 5-year IRA CD – 0.85% APY
  • 4-year IRA CD – 0.90% APY
  • 3-year IRA CD – 0.90% APY
  • 2-year IRA CD – 0.95% APY
  • 18-month IRA CD – 1.00% APY
  • 12-month IRA CD – 1.00% APY
  • 9-month IRA CD – 0.80% APY
  • 6-month IRA CD – 0.60% APY

Additional Services

Capital One 360 also offers credit cards, auto loans, business credit cards and banking services, and commercial/corporate banking.

Customer Service

Capital One 360 support can be accessed by phone at 1-888-464-7868 24/7 (please note this support is automated). For human customer support from 8 am to 8 pm 7 days a week, please use 1-800-289-1992. Consult the customer service webpage for customer support product categories.

Security

Securely log-in to your Capital 360 mobile app using SureSwipe (custom pattern drawn by you) or sign-in using only your fingerprint. Dispute transactions within the mobile app.

  • Debit card lock/unlock within the mobile app
  • Account Monitoring
  • Real-time alerts

Shared Features

  • No account minimum
  • No fees
  • High-interest savings
  • Easy account setup
  • Mobile app
  • Mortgage loans
  • Auto loans
  • IRA CDs

What are the Fees?

Both Ally and Capital One 360 do not have an account minimum or monthly fees.

Pros

Ally

  • 24/7 human customer service
  • High-interest rates
  • eCheck deposit
  • Integrated investment platform (Ally Invest)
  • No account minimum
  • No fees
  • App has a voice assistant

Capital One 360

  • High-interest savings rate
  • No account minimum
  • 24/7 customer service
  • Easy account setup
  • Clean navigation, dashboard
  • Syncs with third-party apps like Mint
  • Integrates with Capital One credit cards

Cons

Ally

  • $10 transaction fee when you transfer more than 6 times per month
  • No cash deposits
  • No physical locations
  • No ATM card for savings accounts
  • Low APY on money market accounts

Capital One 360

  • Frequent cross-sell advertisements
  • Check deposit and savings deposit access takes 5 days (to access the majority of the funds)
  • Human customer service is not around the clock
  • Low-interest rates compared to similar fintech banks

FAQs About Ally Bank and Capital One 360

Is Ally Bank owned by Capital One?

No. Ally Bank is a digital bank that operates online. Capital One (rebranded as Capital One 360 in 2013), is the largest direct bank in America.

How do I deposit cash into Capital One 360?

Within your Capital One account (through the mobile app), click on the “deposit” next to the camera icon. You will then need to take photos of each side of your check. Follow the steps on the screen to add the amount of the check and optional memo.

Is there a minimum balance for Ally checking?

No. There is no minimum balance to open or maintain an Ally checking account. There are no monthly or maintenance fees. Just keep in mind there is no way to make cash deposits since it is a digital-only bank.

Does Capital One 360 charge ATM fees?

No. Capital One 360 does not charge ATM fees. It currently has a network of 40,000 ATMs in the US, thanks to a partnership with the Allpoint ATM network.

Alternatives

Simple Bank

simple bank

Pros:

  • No minimum balance to open or maintain an account
  • Push notifications for purchases
  • No overdraft charges

Cons:

  • No option for CDs
  • No physical locations
  • ATM fees (out of network)

Read More: Simple Bank Review: Is It the Best Online-Only Bank for You?

Marcus Bank

marcus

Pros:

  • CDs and personal loans
  • Financial education and calculators
  • Automatic savings transfers

Cons:

  • No check deposit on mobile
  • No ATM network
  • CDs automatically renew

Discover Bank

discover

Pros:

  • No fees
  • High yield savings account
  • IRA CDs

Cons:

  • One physical branch
  • Slow ACH transfers

Which One Will You Choose?

With a large product line, no fees or minimum balance, and higher than average APY, both Ally Bank and Capital One 360 are solid choices. If you prefer in-person customer service, no overdraft fees, and kid-friendly accounts, Capital One 360 might be your best choice. However, you may prefer Ally Bank’s better APY, investment platform integration, and 24/7 human customer service.

If you are still looking for the perfect banking option, consider looking into our top alternatives Simple Bank, Marcus, and Discover.

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Julie Thompson

Julie is a personal finance blogger with 15 years of experience in investing and maintaining profitable side hustles. She is passionate about helping others learn and utilize financial tools so they can live their best lives.