Banking Bank Reviews

Ally Bank vs. Capital One 2024: Banking Comparison

Ally Bank and Capital One 360 both offer free online bank accounts and high rates, but Ally may be better for more customers, while Capital One is better for families.

By Christy Rakoczy
and Lauren Graves

Edited by Stephanie Trejos

Updated Dec. 17, 2024

Stop guessing and stay ahead of expenses with unique spending “buckets” feature
Go fee-free with no monthly maintenance or overdraft fees
Highly rated mobile app on Apple App Store with over 20,000 reviews
Access 43,000+ no-fee Allpoint® ATMs; get reimbursed up to $10 per statement cycle for fees charged at other ATMs nationwide
Get paid up to 2 days sooner with early direct deposit
Member FDIC

Our view

Ally and Capital One 360 are solid choices for fee-free online banking. They both offer banking benefits like no minimums and early direct deposit, high interest rates on savings accounts, and no monthly fees. They even have similar ATM access and mobile apps.

However, we recommend Ally for long-term saving because, unlike Capital One, it provides several types of certificate of deposit (CD) accounts and a money market account (MMA). Plus, Ally builds tools to help you save more into its checking and savings accounts. We recommend Capital One 360 for parents because it has bank accounts for kids and teens, and we also like the bank for in-person service (though the branch network is very limited compared to other banks).

How we evaluate products

Whether you choose to bank with Ally or Capital One 360, you’ll avoid most annoying banking fees, earn good interest rates, and have convenient access to your accounts through user-friendly digital platforms. But though these full-service banks are similar, they’re not equal. There are key differences between the two in terms of account options, banking benefits, and access. Be aware that both banking platforms have received similarly low ratings on consumer review platforms.

The best bank for you between these choices will depend on how you prefer to manage your accounts and what accounts you want to open. Overall, Ally has the edge over Capital One for everyday banking and saving, and Capital One wins out for family banking. When you compare apples to apples, Ally is likely the better choice for a broader range of people.

Here’s how Ally and Capital One 360 compare.

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Ally Bank vs. Capital One 360: Overview

	Ally Bank	Capital One 360
Year founded	1919	1994
Number of branches	None	256
Number of fee-free ATMs	75,000+ Allpoint ATMs	70,000+
Checking accounts offered	Spending Account	360 Checking Account MONEY Teen Checking Account
Savings accounts offered	Savings Account	360 Performance Savings Kids Savings Account
CD options	High Yield CD Raise Your Rate CD No Penalty CD	360 CDs
MMAs	Money Market	None
FDIC	Member FDIC	Member FDIC
	Visit Ally Bank	Visit Capital One 360

When to go with Ally Bank

Ally Bank might be right for you if:

You want a penalty-free or bump-up CD.
You want an MMA.
You need help saving more.
You want to open a checking and savings account.
You use ATMs often.

Ally Bank is an online-only bank that offers bank accounts, credit cards, investment accounts, and loans. If you bank with Ally, you’ll manage your accounts entirely from a digital platform or mobile app. Ally is known for paying high interest rates on savings accounts and stands out for its flexible CDs and automated savings features.

Pros

Automated savings features, including savings buckets and automatic transfers
24/7 phone and live chat support
CD terms from three months to five years, plus no-penalty and bump-up CDs
Highly competitive rates on savings accounts, CDs, and MMAs
75,000+ in-network ATMs and $10 in fee reimbursements for out-of-network ATMs each statement cycle

Cons

No brick-and-mortar bank branches
No dedicated accounts for kids and teens
Poor mobile app reviews on Google Play
Poor consumer ratings

Read our Ally Online Savings Account Review

When to go with Capital One 360

Capital One 360 might be right for you if:

You want to open a checking account for your teen.
You want to open a savings account for your child.
You want in-person customer support (and live near a branch).
You want a CD term not offered by Ally.

Capital One is a hybrid bank with a full-featured digital platform and a network of less than 300 in-person branches — for comparison, Bank of America has over 3,700 branches. If you become a customer, you can manage your accounts entirely online, visit a branch (if you live near one), or do a combination of both. Capital One branches are concentrated along the East Coast.

Capital One offers a wide variety of banking products, including checking and savings accounts, credit cards, auto loans, and business banking solutions. Unlike many banks, including Ally, the company provides dedicated kids' and teens' accounts.

Pros

Checking accounts for kids and teens
Automated savings features, including automatic transfers
Phone support seven days a week and 256 branches for in-person support
Moderately competitive rates on savings accounts and CDs
70,000+ in-network ATMs

Cons

No MMA
No ATM reimbursements for out-of-network ATMs
No flexible CDs or CDs with terms of less than six months
Poor consumer ratings

Read our Capital One 360 Review

Ally Bank vs. Capital One 360: Checking accounts

Winner: Tie (Ally for cash access, Capital One 360 for kids’ checking)

	Ally Bank	Capital One 360
Accounts	Spending Account	360 Checking MONEY Teen Checking
APY	0.25% (as of 10/28/24) APY on checking accounts	0.10% (as of 10/28/24) APY on 360 Checking 0.10% (as of 10/28/24) MONEY Teen Checking
Fees	No monthly maintenance or overdraft fees	No monthly maintenance or overdraft fees
Minimums	None	None
ATMs	75,000+ fee-free ATMs plus reimbursement of up to $10 in ATM fees monthly	70,000+ fee-free ATMs

For everyday checking accounts, we like Ally and Capital One about equally. In addition to having no fees or minimum deposit and balance requirements, they both offer early direct deposit so you can get your paycheck up to two days before it’s scheduled to arrive.

That said, Ally has a slightly more extensive ATM network than Capital One and reimburses out-of-network fees, so we recommend Ally if cash access is important to you. Ally is also the better option for people interested in savings accounts, and we’ll cover this more next.

However, for teen banking, I’d recommend Capital One. The MONEY Teen Checking account is one of the best kids’ bank accounts you’ll find from a big bank, and it has no minimums or fees. We even prefer it to popular options like Greenlight for parents who want to avoid monthly subscription fees. But MONEY Teen Checking is best for kids over 13 (despite being available to kids eight and older) because the account doesn’t offer much in the way of educational tools and parental controls over spending.

Note

While Ally and Capital One both technically offer interest checking, their rates leave something to be desired. On checking, Ally pays a higher interest rate of 0.25% (as of 10/28/24) APY, while Capital One pays 0.10% (as of 10/28/24) APY. Some of the best checking accounts earn yields that blow these rates out of the water.

Ally Bank vs. Capital One 360: Savings accounts

Winner: Tie (Ally for automated saving, Capital One for kids’ saving)

	Ally Bank	Capital One 360
Accounts	Savings Account	360 Performance Savings Kids Savings Account
APY	4.00% (as of 10/28/24) APY	4.00% (as of 10/28/24) APY on 360 Performance Savings 2.50% (as of 10/28/24) APY on Kids Savings Account
Fees	No monthly maintenance fee	No monthly maintenance fee
Minimums	None	None
Features	Savings buckets within one account Recurring automatic transfers Rounds Ups (booster) Surprise Savings (booster)	Multiple accounts for different goals Recurring automatic transfers

For savings accounts, APYs and fees are the most important factors to consider because they determine how much your money grows — and how much growth you get to keep. Ally Bank and Capital One savings accounts earn respectable yields, though not quite the highest you’ll find in the best savings accounts. They also don’t charge monthly maintenance fees that could cut into your earnings or require a minimum deposit to open and earn interest.

Features to help you save more are a bonus, and this is where Ally comes out on top with its buckets and “boosters.” With an Ally Savings Account, you can use Buckets to organize your savings into different categories and enable Round Ups and Surprise Savings to automatically send money from your checking to your savings account.

Round Ups work by rounding up your debit card transactions to the nearest dollar and saving the extra, and Surprise Savings scans your checking for money you’re not using. You can also schedule recurring transfers, but this isn’t a unique feature for savings accounts today.

Good to know

To take advantage of Ally’s many savings features, you also need a Spending Account, which could be a barrier if you’re happy with your current bank account

With Capital One, you can create multiple Performance Savings accounts to separate funds for your different financial goals and schedule automatic transfers to save regularly. Capital One has fewer tools than Ally to automate your savings. But again, Capital One wins specifically for families because it offers a Kids Savings Account. This earns 2.50% (as of 10/28/24) APY, which is pretty high for a kids’ savings account, and has no fees or minimums. It’s a joint account controlled by parents, and you can open one for your child if they’re at least 12.

Ally Bank vs. Capital One 360: CDs

Winner: Ally

	Ally Bank	Capital One 360
Accounts	High Yield CD Raise Your Rate CD No Penalty CD	360 CDs
Terms	High Yield CD Three months Six months Nine months One year 18 months Three years Five years Raise Your Rate CD Two years Four years No Penalty CD 11 months	Six months Nine months 11 months One year 18 months Two years 30 months Three years Four years Five years
APYs	High Yield CD: 3.90% (as of 10/28/24) APY Raise Your Rate CD: starts at 3.50% (as of 10/28/24) APY No Penalty CD: 4.00% (as of 10/28/24) APY	From 3.50%-4.50% (as of 10/28/24)
Fees	No monthly maintenance fees, early withdrawal penalty between 60 and 150 days’ interest for High Yield and Raise Your Rate CDs	No monthly maintenance fee, early withdrawal penalty between three and six months’ interest
Minimum balance	None	None

For CDs, available terms are just as important as APYs because they determine whether an account can fit into your saving strategy. Both Capital One and Ally offer 10 CD terms to choose from, but Capital One only offers one type of CD, while Ally offers three — High-Yield CDs, Raise Your Rate CDs, and a No Penalty CD.

When you directly compare rates between Ally and Capital One, Ally comes out on top again (though rates are comparable for longer terms, and Ally only has a slight margin on many others). Ally also offers a loyalty interest bonus to customers who renew their CDs and a Ten Day Best Rate Guarantee that ensures your account locks into the highest rate offered for 10 days after opening. However, you might prefer Capital One for CDs if you don’t see the exact term you’re looking for with Ally for standard CDs (such as two years, 30 months, or four years).

Ally’s Raise Your Rate CD

Raise Your Rate CDs are bump-up or bump-rate CDs that let you increase the rate your account earns once during your term if the available rate for new accounts with Ally goes up after you open. Typically, CDs earn fixed interest rates for the duration of their term.

Ally’s No Penalty CD

The No Penalty CD is also unlike most standard CDs. It doesn't require a long-term commitment; you can withdraw your money penalty-free in as little as six days after funding your account. Generally, CDs charge penalty fees equal to a percentage of the interest earned for withdrawing funds before the term is up.

How do their money market accounts compare?

Winner: Ally

Ally Bank Money Market	Capital One 360
APY: 3.80% (as of 12/11/24) APY Fees: None Minimums: None Spending: Debit card and checks	N/A

Ally Bank has a money market account, while Capital One 360 doesn’t. Ally’s MMA earns a pretty good APY and stands out from other MMAs for allowing unlimited monthly withdrawals and capping other transactions at 10 per month (compared to six for many MMAs). Ally also reimburses up to $10 in out-of-network ATM fees each statement period for MMA withdrawals. Ally’s account doesn’t have a minimum deposit or balance you have to meet to open and earn interest, which is also unusual, and there’s no monthly maintenance fee to worry about either.

Tip

Money market accounts earn variable interest rates that can change at any time, like savings account rates. But unlike savings accounts, they often come with cash access in the form of debit cards, ATM cards, and/or checkbooks. Many people use MMAs for emergency funds or as a secondary checking account for funds they might need to dip into more frequently than savings but less than regular spending money.

Access and customer support

Winner: Tie

Branches and ATMs

Capital One has 256 local branches for customers looking for in-person support. Ally Bank doesn’t operate any branches. Ally has 75,000+ fee-free ATMs (plus fee reimbursements), while Capital One has 70,000+.

Reviews

Ally Bank has an A rating with the Better Business Bureau (BBB). Its consumer rating is 1.2 out of 5 stars on Trustpilot and 1.3 out of 5 stars on ConsumerAffairs.

Capital One 360 has an A+ rating with the BBB. Its consumer rating is 1.3 out of 5 stars on Trustpilot and 1.1 out of 5 stars on ConsumerAffairs. While these consumer ratings are low, it’s important to remember that angry customers often yell the loudest. Read reviews for yourself to get an idea of what customers are unhappy with and whether these patterns bother you.

Contact: To get in touch with a customer service representative with Ally, you can call, live chat, or send a secure message through your online portal. To contact support with Capital One, you can call, send a secure message, or visit a branch.

FAQs

Is Capital One 360 FDIC insured?

Yes, Capital One 360 is FDIC insured. The Federal Deposit Insurance Corporation (FDIC) insures its accounts up to standard limits of $250,000 per depositor, per account ownership category. Capital One’s FDIC certificate number is 4297.

Is Ally Bank FDIC insured?

Yes, Ally Bank is FDIC insured. The FDIC insures its accounts up to standard limits of $250,000 per depositor, per account ownership category. Ally Bank’s FDIC certificate number is 57803.

Should you use Ally and Capital One?

Depending on your banking needs and the accounts you want to open, using Ally and Capital One 360 may make sense. The two institutions have different strengths and weaknesses, so you might be able to get the accounts, features, and accessibility you need by combining the two.

Bottom line

Both Capital One and Ally offer appealing checking and savings account options with helpful online banking features to make it easy to manage your accounts. If you want phone support, a penalty-free CD, or an MMA, Ally is your best bet. If you want in-person customer support or checking or savings accounts for kids and teens, Capital One 360 is the right choice for you.

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