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  • Ally is an online-only bank while Capital One 360 is the online operation of Capital One.
  • Ally has a slightly more competitive savings account; Capital One 360 has a better checking account.
  • Ally is our default winner for money market accounts; for CDs, it’s even between the two banks.
  • Read Insider’s bank reviews of Ally and Capital One 360.

Ally and Capital One offer a good variety of online banking options. If you’re looking for competitive high-yield savings accounts, interest-earning


checking accounts

, or CDs, you’ll find these accounts at both banks.

We’ve compared each account below to see which institution stands out the most. We’re also evaluating each bank’s trustworthiness so you can know more about each institution’s history.

Pros and cons Ally

Pros and cons Capital One 360

Checking account comparisons

Ally and Capital One both offer a fee-free interest-earning checking account. Capital One also has a joint checking account for minors featured on our best teen checking accounts guide.


Annual Percentage Yield (APY)


0.10% APY


Minimum Deposit Amount


None


Annual Percentage Yield (APY)


0.10% APY


Minimum Deposit Amount


None

Pros

  • 0.10% APY on all account balances
  • No opening deposit or minimum account balance
  • No monthly service fee
  • No foreign transaction fee
  • Range of overdraft protection options
  • Processes direct deposits up to 2 days early

Cons

  • $2 out-of-network ATM fee
  • Doesn’t reimburse out-of-network ATM fees
  • Limited access to customer service by phone

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More Information

  • Over 70,000 free ATMs nationwide
  • Branches in NY, LA, TX, MD, VA, NJ, and Washington, DC
  • Interest compounded daily, paid monthly
  • FDIC insured

Savings account comparisons

Ally and Capital One pay competitive interest rates on savings accounts. You’ll also be able to open a kid’s savings account at Capital One. 


Annual Percentage Yield (APY)


0.50% APY


Minimum Deposit Amount


None


Annual Percentage Yield (APY)


0.50% APY


Minimum Deposit Amount


None

Pros

  • High APY
  • No minimum opening deposit
  • No monthly service fees
  • Savings buckets help you save for different goals
  • Surprise savings transfers help you save extra money from your checking account

Cons

  • No physical branch locations
  • No way to deposit cash

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More Information

  • Create separate savings buckets in a savings account
  • Link to your Ally checking account and enroll in surprise savings transfers to have extra money transferred to savings three times per week
  • Interest compounded daily, paid monthly
  • FDIC insured

CD comparisons 


Annual Percentage Yield (APY)


0.15% to 1.20% APY


Minimum Deposit Amount


None


Annual Percentage Yield (APY)


0.15% to 1.20% APY


Minimum Deposit Amount


None

More Information

  • Terms ranging from 3 months to 5 years
  • Early withdrawal penalty of 60 days interest penalty term of 24 months or less; 90 days interest for term of 25 to 36 months; 120 days interest for terms of 37 to 48 months; 150 days interest for terms of 49 months or more
  • Interest compounded daily, paid monthly
  • FDIC insured


Annual Percentage Yield (APY)


0.25% to 1.20% APY


Minimum Deposit Amount


None


Annual Percentage Yield (APY)


0.25% to 1.20% APY


Minimum Deposit Amount


None

More Information

  • Terms ranging from 6 months to 5 years
  • No minimum deposit
  • Early withdrawal penalties ranging from 3 to 6 months interest
  • Compounding interest to maximize your earnings
  • FDIC insured

Money market account 

Capital One 360 doesn’t offer a money market account, but Ally does. The Ally Money Market Account is a great choice if you’d like to open a money market account with an online bank.

It’s featured in our best money market accounts guide, which includes fee-free accounts with competitive interest rates. The Ally Money Market Account stands out because it doesn’t require a minimum opening deposit. Usually, banks ask for at least $1,000 to open an account. 


Annual Percentage Yield (APY)


0.50% APY


Minimum Deposit Amount


None


Annual Percentage Yield (APY)


0.50% APY


Minimum Deposit Amount


None

Pros

  • No opening deposit or minimum account balance
  • No monthly service fee
  • Access to a debit card
  • Access to paper checks
  • Out-of-network ATM reimbursements of up to $10 per month
  • 24/7 customer service
  • Easy-to-use mobile app
  • Link to other Ally bank accounts

Cons

  • Not the highest money market account APY
  • No physical branch locations
  • $10 excess transaction fee (paused during COVID-19)

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More Information

  • Access to checks and a debit card
  • Interest compounded daily, paid monthly
  • FDIC insured

Which bank is more trustworthy?

The Better Business Bureau evaluates businesses to see if they effectively respond to customer issues and have honest advertising practices.

The BBB gave Capital One an A rating. Meanwhile, Ally received a C rating because it has a high volume of customer complaints and two unresolved customer issues. 

A high BBB rating doesn’t necessarily guarantee your relationship with a bank will be perfect. Reach out to current customers or read online customer reviews to see if a bank might be a good fit for you.

Ally hasn’t been involved in any public controversies, but Capital One has experienced one recent settlement.

In 2020, The Office of the Comptroller of Currency required Capital One to pay $80 million in a settlement that said the bank had inefficient security practices, which comprised personal information of bank credit cardholders.

Source News