Ally vs Capital One: Which One is Better?

Ally and Capital One are online banks that provide better facilities to their customers as compared to traditional banks.

Both save your money by providing zero-fee accounts and different reimbursements. You can get better clarity by going through this head to head comparison. 

Ally vs Capital One (Comparison Table) 

CategoryAllyCapital One
ServicesSavings, Checking, CDs, and Money MarketSavings, Checking, CDs
Checking AccountsNo monthly fee.
No minimum deposit.
No monthly fee.
No minimum deposit.
Savings AccountsInterest rate: 1.50%.
No monthly fee.
Interest rate: 1.50%.
No monthly fee.
Certificates of deposit1 year: 1.50% APY.
5 years: 1.60% APY.
No minimum deposit.
1 year: 1.50% APY.
5 years: 1.40% APY.
No minimum deposit.
Overdraft fee$25, restricted to once per day.$35, restricted to 4 times per day.
BranchesNo branch550 Capital One branches and access 35+ Capital One 360 Cafés across the country.
ATMsAbove 43,000Around 40,000

Ally Bank Review 

Ally Bank

Ally bank is a one-stop solution to your banking, savings, and investing needs because Ally is a subsidiary of Ally Financials (a 100 years old company) finance company that also offers investment solutions.

Ally bank offers – no minimum deposit required, no monthly account maintenance fee, and no cost for standard checks as well as debit cards.

However, Ally bank has no physical branches in the states but you can speak to their representative 24×7. You can also use their app to do all the transactions.

Ally banks don’t accept cash deposits for similar reasons.

Connect with Alexa

You can connect with Alexa to check balances and complete similar tasks like transfer money and hear previous transactions. You can also ask for today’s CD or MMA rates.

You can use commands in this way-

“Alexa, open Ally and get my balance.”

“Alexa, open Ally and transfer $100 to my savings account.”

“Alexa, ask Ally how much I spent last month.”

“Alexa, open Ally and tell me the rates for a CD.”

Capital Bank Review.

Capital One

Capital bank is a hybrid online bank that gives full services online but also have some physical branches in the states. 

If you live in northeast, mid-Atlantic, Louisiana, Texas, you can cind Capital one bank’s branch and some cafe’s as well.

You don’t require to keep any minimum balance on checking as well as savings accounts as Capital One bank doesn’t charge any monthly fee.

You can also use around 40,000 ATMs to withdraw cash with zero ATM charges.

The capital bank also allows you to open a CD account with no minimum deposit. You can choose interest disbursements on a monthly or annual basis as per your choice.

Capital One was the first bank in the states to launch Amazon’s Alexa skills.

Ally vs Capital One: Checking Account Comparison

Open Checking Account in Ally Bank If you want to deposit money in the range of $15,000 to $50,000 otherwise Capital one is the best if you want to keep the money either below $15,000 or above $50,000.

Ally Bank Checking Account Benefits

Ally Bank Offers no monthly fee to maintain the account and you can access above 43,000 ATMs for cash withdrawal. You also get monthly fee reimbursements for out-of-network ATMs.

You can earn interest on your daily balance.

Capital One Bank Benefits

Capital one bank offers you tier-wise interest rates that gives you extra interest if the amount is kept in a particular category. They have 3 tiers-

  • 0.20% interest from $0 to 50,000 balance
  • 0.75% interest from $50,000 to $1,00,000 balance
  • 1.00% interest on the amount above $1,00,000

You can access their branches available in limited cities. You can also avail fee free overdraft facility against your checking account.

SegmentAlly Bank Checking Account InterestCapital One 360 Checking Account Interest
Monthly FeesZeroZero
Minimum DepositZeroZero
Interest APY$0 to 15,000 – 0.10%
$15,000 onwards – 0.60%
$0 to 50,000 – 0.20%
$50,000 to $1,00,000 – 0.75%
$1,00,000 onwards – 1.00%
Overdraft facility1 time in a day4 times in a day

Ally vs capital one: Savings Account Comparison

Ally Bank offers the same Annual Percentage Yield (APY) as Capital One bank on a savings account. Both banks don’t charge any monthly fee on the savings account.

If you need to go to a bank branch for some assistance, then go for Captial one, otherwise, Ally provides amazing online customer service 24×7.

Ally Bank Savings Account Benefits

Ally bank offers a 1.50% interest rate which is better than its competitors. You don’t need to maintain any minimum balance. There’s no monthly fee on Ally bank savings account. 

You don’t get an ATM card with Ally bank savings account but you can transfer the funds online or do wire transfers.

Capital One Bank Savings Account Benefits

Similar to Ally bank, Capital bank also don’t put any monthly charges or account maintenance fee. You can also fix savings goals and set up an automated savings plan using the mobile app. 

You get better yields than the other counterparts. No ATM cards.

SegmentAlly Bank Savings Account InterestCapital One 360 Savings Account Interest
Monthly FeesZeroZero
Minimum DepositZeroZero
Interest APY1.50%1.50%
Automatic Savings facilityYesYes

Ally vs. Capital One 360: Certificates of deposit Comparison

If you want flexible plans for Certificate of Deposits then go for Captial One 360, well Ally has limited CD options but Ally bank gives you the benefit to open a CD account without any required minimum amount.

Ally gives you better interest rates on 1-year plan than Captial One 360.

Ally Bank CD Account Benefits

Ally bank offers 3 types of CD accounts as give below.

  • 1-year plan – You can start a 1-year CD account and earn 1.50% APY with zero initial amount.
  • 3-year plan – You can earn in the range of 1.55% APY for a 3-year plan.
  • 5-year plan – gives you the highest APY at the rate of 1.60%

You don’t need any minimum deposit to start the CD. 

Interest is compounded daily. You can automatically qualify for higher interest rates if the bank raises APY rates within 10 days of your account opening. 

For example, your bank was offering you 1.50% APY at the time of account opening but within one week bank raises the APY rates to 1.55%, now you will now get 1.55% APY rather than 1.50% that was fixed at the time of account opening.

Ally doesn’t offer any 2 year or 4-year plans.

Capital One Bank CD Account Benefits

Capital One Bank offers different CD accounts as give below.

  • 1-year plan -You can start a 1-year CD account and earn 2.70% APY with zero initial amount.
  • 2-year plan – Capital One bank offers you 2 years CD account at an interest rate of 2.80%
  • 3-year plan – gives you better returns on investment at the rate of 2.85%
  • 4-year plan – You can invest for 4 years in CD account without any market risk
  • 5-year plan – gives you high yield APY with 3.10% if you invest for 5 years.
Year wise planAlly Bank CD Account InterestCapital One 360 CD Account Interest
1-year plan1.50%1.50%
2-year planNA1.40%
3-year plan1.55%1.40%
4-year planNA1.40%
5-year plan1.60%1.40%

Final words

Ally and capital one both are the top-rated banks of the United States. Both are better in their services as compared to the other competitors. 

However, you can go for the capital bank if you need better interest rates in checking accounts or if you want physical branch access otherwise Ally gives you similar benefits online.

Leave a Reply